Five Star Business Finance , a leading non-banking finance company (NBFC), announced the resignation of Rangarajan Krishnan from his position as Joint Managing Director and Chief Executive Officer, effective August 14, 2025. Krishnan cited his desire to pursue an entrepreneurial journey as the reason for his departure after serving the company for 10 years.

Leadership Transition

The Board of Directors has accepted Krishnan's resignation, confirming that there are no other material reasons for the decision. Lakshmipathy Deenadayalan, Chairman and Managing Director, will continue overseeing the company's day-to-day operations.

Strong Q1 FY2026 Performance

Despite the impending leadership change, Five Star Business Finance reported impressive financial results for Q1 FY2026:

• Assets Under Management (AUM): Grew by 20% year-on-year to ₹124,578.00 crore
• Net Profit: Increased by 6% to ₹266.31 crore
• Total Income: Rose by 18% to ₹791.19 crore

Key Financial Metrics

Operational Highlights

• The company added 19 branches during the quarter, bringing the total branch count to 767.
• Five Star Business Finance maintained a strong capital adequacy ratio of 49.15%.
• The security cover over listed non-convertible debentures stood at 1.20 times as of June 30, 2025.

Challenges and Outlook

While the company demonstrated strong growth, there was a notable increase in Gross Stage 3 assets, rising to 2.46% from 1.41% in the same quarter last year. This increase in non-performing assets may require close monitoring in the coming quarters.

The Board expressed appreciation for Krishnan's decade-long service to the organization and wished him success in his future endeavors. As the company navigates this leadership transition, it remains focused on maintaining its growth trajectory and addressing asset quality challenges.

Five Star Business Finance continues to expand its presence in the small business loan segment, with a particular focus on southern India and emerging markets in other regions. The company's robust financial performance and strategic expansion plans position it well for continued growth, despite the upcoming change in leadership.

Investors and stakeholders will be watching closely to see how the company maintains its momentum and addresses challenges under its existing leadership structure in the coming quarters.

Five Star Business Finance , a non-banking finance company (NBFC) focused on providing secured business loans to small business owners, has reported a 5.6% year-on-year increase in net profit for the first quarter. The company's financial results reveal both growth and challenges in its operations.

Financial Performance

Five Star Business Finance posted a net profit of ₹266.00 crore for Q1, up from ₹252.00 crore in the same period last year. The company's revenue rose to ₹786.00 crore, marking an 18% increase compared to ₹666.00 crore in the previous year.

Key financial highlights for Q1 include:

• EBITDA increased to ₹546.00 crore from ₹497.00 crore year-over-year
• EBITDA margin declined to 69.40% from 74.69% in the previous year
• Assets Under Management (AUM) grew by 20% year-on-year to ₹124,578.00 million
• The company added 19 branches during the quarter, bringing the total branch count to 767

Asset Quality Concerns

While the company demonstrated growth in its loan portfolio and profitability, there are signs of stress in asset quality:

• Gross Stage 3 assets ratio increased to 2.46% from 1.41% in the same quarter last year
• The 30+ Days Past Due portfolio rose to 11.31%
• Collections efficiency declined to 96.30% from 97.70% in the previous quarter

Operational Updates

Five Star Business Finance continued its expansion strategy:

• Increased its presence across 11 states
• Total headcount grew to 12,043 employees
• Maintained a strong capital adequacy ratio of 49.15%

Financial Ratios

As Five Star Business Finance navigates through asset quality challenges, investors and stakeholders will be closely watching the company's performance in the coming quarters.