IndoStar Capital Finance Limited (ICFL) has reported a significant increase in net profit for the first quarter, primarily driven by a one-time gain from the sale of its housing finance subsidiary. The non-banking financial company (NBFC) also announced strategic changes in its business focus and credit policies.

Financial Highlights

• Net profit surged to INR 535.00 crores, compared to INR 11.00 crores in the same quarter of the previous year
• One-time gain of INR 1,176.00 crores from the sale of Niwas Housing Finance
• Net Interest Income (NII) increased by 10% year-on-year to INR 158.00 crores
• Assets Under Management (AUM) grew 9% year-on-year to INR 7,783.00 crores

Operational Performance

• Disbursements for the quarter stood at INR 858.00 crores, down from INR 1,081.00 crores in the previous quarter and INR 1,416.00 crores year-on-year
• Average disbursement yield was 18.40%
• Gross Stage 3 assets at 4.04% and Net Stage 3 assets at 1.68%
• EMI to EMI collection efficiency at 89%, while EMI plus overdue collection at 94%

Strategic Developments

IndoStar Capital Finance has completed the divestiture of its 100% subsidiary, Niwas Housing Finance Private Limited, marking a strategic shift towards becoming a focused stand-alone NBFC. The company now operates with two core segments: vehicle finance and micro loans against property.

Randhir Singh, Managing Director and Executive Vice Chairman of IndoStar Capital Finance, stated, "This strategic transition marks a new chapter in our value creation journey, enabling sharper execution, deeper market penetration and agile capital allocation across its core lending businesses."

Credit Policy Adjustments

The company has implemented proactive credit policy adjustments in response to collection softness observed both within its portfolio and across peer industries. These measures include:

1. Tightening underwriting discipline
2. Revising the technical write-off policy to 200 days past due
3. Writing off INR 161.00 crores of loans that crossed the 210 DPD threshold
4. Making an incremental provision of INR 255.00 crores on select security receipts

Future Outlook

IndoStar Capital Finance expects disbursements to pick up sequentially in the coming quarters, targeting a 15% increase in the next quarter. The company aims to achieve 12-15% AUM growth for the current fiscal year and 15-17% for the next fiscal year.

The management remains focused on disciplined execution, operational efficiency, and portfolio quality. The company plans to strengthen its multiproduct branch model, deepen rural reach, and embed digital processes across the value chain.

Cost Optimization and Borrowing Profile

IndoStar has launched a focused internal cost optimization initiative, aiming to achieve annualized savings of 8% to 10% compared to last year's operating costs. The company's incremental cost of borrowing has improved to 9.20%-9.50%, down from 9.70%-9.80% in the previous quarter.

Jayesh Jain, Chief Financial Officer, commented, "We expect to replace another INR 1,480.00 crores of higher cost debt over the next 3 quarters, which should further improve our borrowing profile."

With a strong capital adequacy ratio of 32.70% and a debt-to-equity ratio of 1.7x, IndoStar Capital Finance is well-positioned to fund future growth while maintaining financial stability in the evolving market landscape.

IndoStar Capital Finance Limited , a prominent player in the Indian financial services sector, has announced a significant addition to its leadership team. The company has appointed Mr. Amit Kumar Khan as its new Chief Operating Officer (COO), effective August 14, 2025.

Extensive Experience in Banking and Financial Services

Mr. Khan brings over 25 years of rich experience in the Banking & Financial Services industry to his new role at IndoStar Capital Finance. Throughout his career, he has managed various critical functions including business operations, underwriting, risk management, and collections in both secured and unsecured retail lending.

Impressive Career Trajectory

Prior to joining IndoStar, Mr. Khan held senior leadership positions at several prestigious financial institutions:

• Grihum Housing Finance (formerly known as Poonawalla Housing Finance)
• HDFC Bank
• ICICI Bank

His extensive leadership experience spans more than two decades in the financial services sector, showcasing a strong track record in retail assets lending, process excellence, risk management, collections, and technology-led transformation.

Key Responsibilities as COO

In his role as Chief Operating Officer at IndoStar Capital Finance, Mr. Khan will be tasked with:

1. Driving operational excellence
2. Strengthening customer-centric retail lending solutions
3. Supporting the company's strategic growth vision

Expertise in Retail Assets

Throughout his career, Mr. Khan has played a pivotal role in formulating strategies for housing finance companies. He has worked closely with relevant functional teams to create policies, develop products, and build and run large-scale businesses across many states in India. His experience includes managing all-India operations for decades and building various retail assets product-portfolios across the country.

A Strategic Addition to IndoStar's Leadership

The appointment of Mr. Amit Kumar Khan as COO is a strategic move for IndoStar Capital Finance. His extensive experience and proven track record in the financial services sector are expected to contribute significantly to the company's growth and operational efficiency.

IndoStar Capital Finance Limited's decision to bring Mr. Khan on board underscores the company's commitment to strengthening its leadership team and enhancing its position in the competitive financial services market.

As the company moves forward with this new appointment, stakeholders will be watching closely to see how Mr. Khan's expertise and leadership will drive IndoStar's operational excellence and support its strategic vision in the coming years.