Five star business finance Limited has submitted its quarterly compliance statement to stock exchanges, confirming nil deviation in the utilization of proceeds from its convertible share warrants for the quarter ended December 31, 2025. The filing, made on January 28, 2026, was submitted to both NSE and BSE pursuant to Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Warrant Issue Details

The company's preferential issue of share warrants was completed on October 24, 2024, with a total issue size of INR 31,57,00,000. The warrant structure involves a two-stage payment mechanism, with warrant holders paying 25% upfront and the remaining 75% upon conversion.

Q3FY26 Status Update

During the quarter ended December 31, 2025, Five-Star Business Finance Limited reported that no warrant holders exercised their conversion option. Consequently, the company did not receive any additional proceeds from warrant conversions during this period. The upfront consideration of INR 7,89,25,000 received in the previous quarter was fully utilized in accordance with the objects stated in the Annual General Meeting notice dated August 17, 2024.

Compliance and Governance

The company's Audit Committee has reviewed the utilization of funds and confirmed no deviations from the approved objectives. The statement indicates that all proceeds were used as originally intended, with no variations in the objects or purposes for which the funds were raised.

Regulatory Framework

The filing was made in compliance with SEBI (LODR) Regulations, which require listed companies to report any deviations in the utilization of funds raised through public issues, rights issues, preferential issues, or qualified institutional placements. The regulation ensures transparency in fund utilization and protects investor interests by mandating regular disclosure of fund deployment status.

The company has made this information available on its website at fivestargroup.in/investors/, ensuring accessibility for all stakeholders. Company Secretary and Compliance Officer Vigneshkumar SM signed the compliance statement, confirming the accuracy of the reported information.

Five-Star Business Finance Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, following approval by the Board of Directors at their meeting held on January 28, 2026. The Chennai-based Non-Banking Finance Company (NBFC-ND-SI) registered with the Reserve Bank of India reported steady financial performance across key metrics.

Financial Performance Overview

The company's financial results demonstrate consistent performance with profit for the quarter reaching ₹27,702.78 lakhs compared to ₹27,385.90 lakhs in the corresponding quarter of the previous year. Total revenue from operations for Q3FY26 stood at ₹81,506.51 lakhs, representing growth from ₹72,737.51 lakhs in Q3FY25.

Revenue Components and Growth

Interest income formed the primary revenue component, reaching ₹79,586.27 lakhs in Q3FY26 compared to ₹71,123.61 lakhs in the corresponding quarter of the previous year. For the nine-month period, interest income totaled ₹2,33,367.00 lakhs against ₹2,03,157.51 lakhs in the previous year. Fees and commission income contributed ₹1,155.40 lakhs during the quarter, while net gain on fair value changes added ₹764.84 lakhs to the revenue stream.

Expense Analysis

Total expenses for the quarter amounted to ₹45,341.08 lakhs compared to ₹36,592.51 lakhs in Q3FY25. Finance costs represented the largest expense category at ₹18,853.25 lakhs, followed by employee benefits expenses of ₹15,971.80 lakhs. The company recognized an incremental provision of ₹209.40 lakhs under employee benefits expenses due to the implementation of New Labour Codes by the Government of India on November 21, 2025.

Earnings Per Share and Key Ratios

Basic earnings per equity share for the quarter stood at ₹9.41 compared to ₹9.36 in the corresponding quarter of the previous year. For the nine-month period, basic EPS reached ₹28.17 against ₹27.12 in the previous year. The company maintained a face value of ₹1.00 per share across all reporting periods.

Regulatory Compliance and Audit Opinion

The financial results received an unmodified review opinion from statutory auditors Deloitte Haskins & Sells. The company confirmed compliance with all financial covenants prescribed in the Debenture Trust Deed as at December 31, 2025. The security cover over listed non-convertible debentures maintained a ratio of 1.20 times as of December 31, 2025.

Corporate Developments

During the nine months ended December 31, 2025, the company allotted 1,06,448 options under the Five-Star Associate Stock Option Schemes. The total outstanding employee stock options as of December 31, 2025 stood at 24,76,402 at a face value of ₹1. Additionally, the company had issued 4,10,000 convertible share warrants amounting to ₹3,157 lakhs on a preferential basis, following shareholder approval on September 13, 2024.

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