IndoStar Capital Finance Limited , a retail-focused non-banking financial company (NBFC), has reported an 8% sequential growth in quarterly disbursements, signaling positive momentum in its core business segments. The company's strategic shift towards retail lending and its focus on vehicle finance and micro LAP (Loan Against Property) businesses are showing promising results.

Key Financial Highlights

• Disbursements: Rs. 927.00 crores, up 8% from Rs. 858.00 crores in the previous quarter
• Net Interest Income: Rs. 190.00 crores, marking a 15.7% year-on-year increase
• Net Interest Margin: Improved to 7.6% from 5.6% year-on-year
• Net Profit: Rs. 10.40 crores, compared to Rs. 18.00 crores in the same quarter of the previous year
• Assets Under Management: Rs. 7,564.00 crores

Asset Quality and Capital Position

IndoStar Capital Finance has made significant strides in improving its asset quality:

• Gross Stage-III Assets: 3.04%
• Net Stage-III Assets: 1.13%
• Capital Adequacy Ratio: 37.3%
• Debt-to-Equity Ratio: 1.4x

The company completed the sale of stressed assets worth Rs. 309.60 crores to an Asset Reconstruction Company (ARC) for Rs. 220.30 crores, demonstrating its commitment to portfolio quality improvement.

Strategic Transformation and Business Focus

IndoStar Capital Finance has successfully transformed from a corporate lending-focused NBFC to a retail-centric one. Key developments include:

• Vehicle Finance: Remains a core growth engine with improving collections and deepened customer relationships
• Micro LAP Business: Expanding from Tamil Nadu to Andhra Pradesh, with plans to enter 3-4 states
• Housing Finance: Sold its wholly-owned housing finance subsidiary to streamline operations

Operational Improvements

• Collection Efficiency: Approximately 92%
• Cost of Borrowing: Declined to 10.2% from 10.8% year-on-year
• Digital Initiatives: Scaled up customer self-service through the Indo Mitra app and other digital tools

Management Outlook

The management expects disbursements to pick up in the second half of the fiscal year, historically 1.4-1.5 times the first half levels. The company plans to maintain a balanced approach to growth, profitability, and asset quality.

Analyst Conference Call Insights

During the earnings conference call, the management highlighted:

• The company's focus on quality growth in vehicle finance and micro LAP segments
• Plans to expand the micro LAP business to 3-4 states using the existing vehicle finance branch network
• Efforts to improve cost of funds, with incremental borrowing costs now around 9%-9.25%

IndoStar Capital Finance's strategic shift towards retail lending, coupled with its focus on asset quality and operational efficiency, positions it well for sustainable growth in the evolving NBFC landscape. The company's strong capital position and improving funding profile provide a solid foundation for its expansion plans in the vehicle finance and micro LAP segments.

IndoStar Capital Finance Limited , a prominent player in the Indian financial services sector, has announced a significant change in its leadership team. The company has disclosed the resignation of its Chief Business Officer and the appointment of a successor, marking a new chapter in its corporate structure.

Leadership Transition Details

Resignation of Devaraj C

Devaraj C, who served as the Chief Business Officer, has stepped down from his position effective November 3, 2025. According to the company's statement, Devaraj's decision to resign is attributed to his pursuit of other career opportunities.

Appointment of Arvind Uppal

Stepping into the role of Chief Business Officer is Arvind Uppal, who will assume the position starting November 4, 2025. Prior to this appointment, Uppal was serving as the Head of Collections at IndoStar Capital Finance.

Arvind Uppal's Professional Background

Arvind Uppal brings a wealth of experience to his new role:

• Years of Experience: Over 22 years in the industry
• Areas of Expertise:
  • Strategy Planning
  • Sales & Marketing
  • Business Development
  • Credit & Risk Management
  • People Management

Uppal's background showcases significant expertise in both secured and unsecured loans. He has a proven track record in establishing profit centers, identifying key markets, and leading teams to implement innovative strategies for growth and profitability. His experience also highlights his ability to improve processes and contribute to organizational success.

Future Plans

IndoStar Capital Finance has stated that it plans to appoint a new Head of Collections in due course, to fill the position vacated by Uppal's promotion.

This leadership transition comes as IndoStar Capital Finance continues to navigate the dynamic financial services landscape in India. The company's decision to promote from within for such a crucial role may indicate a focus on leveraging internal talent and maintaining continuity in its business operations.

As the financial sector continues to evolve, the impact of this leadership change on IndoStar's strategic direction and market position will be closely watched by industry observers and stakeholders alike.