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Elevated delinquencies in sub-₹3 lakh segment
View Risks →Five-Star Business Finance Limited — Q2 FY26
Five-Star Business Finance reported a stable Q2 FY26 with PAT of ₹286 crore, up 7% QoQ, driven by improved collection efficiency (96.7% vs 96.3% in Q1) and stable credit costs at 1.34%.
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Five-Star Business Finance reported a stable Q2 FY26 with PAT of ₹286 crore, up 7% QoQ, driven by improved collection efficiency (96.7% vs 96.3% in Q1) and stable credit costs at 1.34%. Disbursements fell to ₹1,196 crore from ₹1,290 crore in Q1 due to tighter underwriting controls, but management expects a rebound in H2, targeting full-year AUM growth of 25%. The company launched a housing loan product with a ₹6-8 lakh ticket size, targeting ₹150 crore AUM by year-end. Asset quality saw marginal deterioration with GNPA rising ~18 bps, but management believes the worst is behind and expects improvement from Q3. Key risks include elevated delinquencies in the sub-₹3 lakh segment and potential spillover from MFI stress, though secured collateral provides a buffer.
फाइव-स्टार बिजनेस फाइनेंस ने दूसरी तिमाही में 286 करोड़ रुपये का मुनाफा कमाया, जो पिछली तिमाही से 7% ज्यादा है। इसकी वजह लोन वसूली में सुधार (96.7%) और कर्ज देने की लागत स्थिर रहना (1.34%) है। कंपनी ने कर्ज बांटने में सावधानी बरती, जिससे नए लोन घटकर 1,196 करोड़ रुपये रह गए, लेकिन उम्मीद है कि साल के दूसरे भाग में यह बढ़ेगा। कंपनी ने 6-8 लाख रुपये का होम लोन शुरू किया है और साल के अंत तक इससे 150 करोड़ रुपये का कारोबार करना चाहती है। कर्ज की गुणवत्ता में थोड़ी गिरावट आई है, लेकिन कंपनी का मानना है कि अब स्थिति सुधरेगी। छोटे लोन (3 लाख से कम) में परेशानी हो सकती है, लेकिन सुरक्षित गारंटी से कंपनी सुरक्षित है।
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Read Transcript →Quarter Snapshot
Unique Collection Efficiency
95.1%
Flat QoQ
Stable sequential performance; same as Q1 FY26.
Overall Collection Efficiency
96.7%
+40bps QoQ
Improved from 96.3% in Q1, aided by legal recovery efforts.
Loan Rejection Ratio
41%
+16pp QoQ
Increased from 25% in Q1 due to tighter underwriting filters.
Cost of Funds
9.27%
-27bps QoQ
Declined from ~9.54% in Q1; incremental debt cost at 8.56%.
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Guidance and risk preview
Management reiterated 25% AUM growth guidance for FY26, expecting stronger H2 performance.
Higher NPAs persist in the sub-₹3 lakh ticket size due to customer over-leverage; recovery may take time.
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