Indostar Capital Finance has made the audio recording of its conference call on unaudited financial results available to investors. The call, held on July 30, 2026, discussed the standalone and consolidated financial performance for the quarter ended June 30, 2026. This disclosure ensures transparency for shareholders seeking detailed insights into the company's operational and financial metrics for the period.

The release is pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company notified both BSE Limited and the National Stock Exchange of India Limited regarding the availability of the recording. Shareholders and analysts can access the audio file directly through the company's website at https://www.indostarcapital.com/audio-or-video-recordings .

Disclosure Details

Shikha Jain, Company Secretary & Compliance Officer (Membership No. A59686), signed the communication dated July 30, 2026. The filing references a previous letter no. ICFL/LS/0069/2026-27 dated July 23, 2026, which likely contained the initial financial results announcement preceding this conference call.

This procedural update serves as a compliance measure under Indian securities laws, ensuring that all material information discussed during investor interactions is preserved and accessible. Investors are advised to review the recording alongside the previously filed financial statements for a comprehensive understanding of the company's performance in Q2FY27.

IndoStar Capital Finance Limited reported a consolidated net profit of ₹11.5 crore for the quarter ended June 30, 2026, marking a sharp turnaround from the net loss of ₹423.9 crore in the preceding quarter. The Mumbai-based non-banking financial company (NBFC) swung to profitability on a year-on-year basis, driven by a 44% surge in disbursements to ₹1,235 crore and a significant reduction in impairment charges. This operational improvement signals a stabilization of the credit book after a period of high provisioning, supported by improved net interest income and efficient funding costs.

The Board of Directors approved the unaudited standalone and consolidated financial results on July 29, 2026. Alongside the financials, the Board authorized the issuance of Non-Convertible Debentures (NCDs) worth up to ₹6,000 crore through private placement, subject to shareholder approval at the upcoming 17th Annual General Meeting (AGM). The AGM is scheduled for September 25, 2026, and will also consider the appointment of S. R. Batliboi & Co. LLP as Statutory Auditors for a three-year term.

Financial Performance Highlights

The company's profitability was bolstered by a significant reduction in impairment charges and improved net interest income. Net Interest Income stood at ₹219.5 crore, up 39% year-on-year, supported by improved portfolio yields and a decline in borrowing costs. Pre-provision operating profit (PPOP) remained stable at ₹92.9 crore compared to ₹93.3 crore in the previous quarter.

Impairment on financial instruments dropped to ₹81.45 crore in Q1 FY27, compared to ₹517.27 crore in the preceding quarter and ₹490.39 crore in the same quarter last year. This decline in provisions contributed directly to the return to profitability. The weighted average cost of funds declined to 9.9% in Q1 FY27 from 10.7% in Q1 FY26, an improvement of 80 basis points. Incremental cost of borrowings for the quarter was 9.1%.

The table below summarises key standalone financial metrics across comparable periods:

Operational Growth and Asset Quality

Asset under Management (AUM) increased to ₹8,244 crore as of June 30, 2026, representing a 6% growth over Q1 FY26. Disbursements stood at ₹1,235 crore during the quarter, registering strong growth over the prior year. The company expanded its branch network to 468 branches across 24 states and union territories, adding 14 branches during the quarter.

Credit quality metrics showed signs of normalization. Gross Stage 3 assets stood at 4.84%, while Net Stage 3 assets were 2.48% as of June 30, 2026. The capital-to-risk-weighted assets (CAR) ratio remained robust at 34.8%, indicating strong capital adequacy as the company prepares for its proposed ₹6,000 crore NCD issuance. The liquidity coverage ratio (LCR) was maintained at 1.53x-1.78x of the RBI mandate, demonstrating strong adherence to regulatory compliance.

Digital Transformation and Portfolio Mix

IndoStar has accelerated its analytics transformation across the customer lifecycle, establishing a Data Science practice in FY26. Digital adoption metrics improved significantly in Q1 FY27:

The portfolio remains heavily skewed towards Vehicle Finance, which accounted for 97% of disbursements and 99% of AUM in Q1 FY27. Micro LAP constituted the remaining 3% of disbursements and 1% of AUM. The company continues to scale Micro LAP through co-housing with existing Vehicle Finance branches, improving reach without significant incremental operating costs.

What the Numbers Show

The most material shift in IndoStar's Q1 FY27 performance is the normalization of impairment costs combined with efficient funding. In the corresponding quarter of FY26, the company recognized exceptional items totaling ₹1,175.95 crore due to the divestment of Niwas Housing Finance Limited, which skewed prior-year comparisons. The current quarter's profit is purely operational, driven by lower credit losses rather than one-time gains. The simultaneous drop in cost of funds to 9.9% and rise in net interest income suggests improved margin dynamics, supporting the sustainability of the profitability turnaround.