Star Housing Finance Limited (SHFL) has reported a 16% year-over-year growth in Assets Under Management (AUM) to ₹546.58 crore for the first quarter of fiscal year 2026. The housing finance company, focused on serving first-time homeowners in semi-urban and rural India, shared its financial results in a recent earnings call.

Financial Highlights

Operational Updates

Star Housing Finance has expanded its presence, now serving over 5,400 borrowers through a network of 37 branches across multiple states. The company maintains its focus on affordable housing in semi-urban and rural markets, with average loan sizes ranging from ₹8 lakhs in rural centers to ₹10 lakhs in semi-urban areas.

Asset Quality

These metrics reflect the company's emphasis on credit selection, underwriting discipline, and collection effectiveness.

Funding and Capital

• Total borrowings stood at ₹391.91 crore, sourced from a diversified mix of banks and financial institutions.
• The debt-to-equity ratio as of June 30, 2025, was 2.69 times.
• The Board has approved a fundraise through the issuance of non-convertible debentures of up to ₹50 crore to support growth initiatives.

Strategic Initiatives

SHFL has undertaken several strategic moves to strengthen its market position:

1. Applied for direct listing on the National Stock Exchange (NSE)
2. Initiated a co-lending partnership with Vastu Housing Finance
3. Received Board approval for increasing the authorized share capital to ₹125 crore from ₹50 crore, subject to shareholder approval

Management Commentary

Kalpesh Dave, CEO of Star Housing Finance, commented on the company's performance, stating, "We are hopeful to rebuild the momentum which we had lost in Q3 and Q4 of the previous fiscal year. We are looking forward to making the most of the upcoming festival season and harvest period, which typically see increased activity in our target semi-urban and rural areas."

Outlook

Despite facing challenges in the previous fiscal year, particularly in the second half, Star Housing Finance remains optimistic about its growth prospects. The company is focusing on:

• Building a high-quality asset base
• Expanding reach while maintaining stringent underwriting standards
• Enhancing digital capabilities to drive operating leverage and reduce unit costs

As the affordable housing sector continues to be a key focus area for the Indian government, Star Housing Finance is well-positioned to capitalize on the growing demand for housing finance in semi-urban and rural markets.

Star Housing Finance Limited has taken a significant step in restructuring its shareholding pattern. The company has submitted an application to BSE Limited seeking reclassification of certain individuals and an entity from the 'Promoter and Promoter Group' category to the 'Public' category.

Application Details

The application, submitted on August 19, covers a total of 10,51,014 shares, representing 1.33% of the company's shareholding. This move affects eight individuals and one entity, as detailed below:

Significance of the Move

This reclassification, if approved, will change the status of these shareholders from 'Promoter and Promoter Group' to 'Public' category. The largest holdings among those seeking reclassification are Aarsh Fincon Limited with 5,67,599 shares (0.72%) and Anil Kumar Jain with 2,22,499 shares (0.28%).

Regulatory Process

Star Housing Finance has applied to BSE Limited for obtaining a 'No Objection' for this reclassification under Regulation 31A(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, as amended.

Company's Statement

In its filing, Star Housing Finance stated, "This is for your information and records." The application was signed by Shreyas Mehta, the Company Secretary and Compliance Officer of Star Housing Finance Limited.

Next Steps

The reclassification is subject to approval from BSE Limited. Shareholders and investors will be keenly watching for the stock exchange's decision on this application, as it could potentially impact the company's shareholding structure and governance dynamics.

As this development unfolds, market participants will be monitoring any potential impacts on the company's stock performance and corporate governance structure.