Unique Customer Collection Efficiency
98.1%
+?% QoQ
One of the best in company history, indicating strong collection recovery.
FIVESTARBUSINESSFINANCE
Financial Services
2026-04-??
Five Star Business Finance Ltd — Q4 FY26
Five Star Business Finance reported a challenging FY26 with asset quality headwinds from MFI/unsecured loan stress spilling into secured small-ticket loans.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Five Star Business Finance reported a challenging FY26 with asset quality headwinds from MFI/unsecured loan stress spilling into secured small-ticket loans. However, Q4 FY26 showed strong recovery: unique customer collection efficiency hit 98.1%, X-bucket collections at 99.3%, and slippage ratio dropped from 1.09% to 0.7% QoQ. Disbursements grew 24% sequentially to ₹1,213 crore, and full-year PAT was ₹1,099 crore (+2% YoY). Management guided for ~20% AUM growth in FY27, credit cost of 1.7-1.75% (steady state 1.5-1.6%), and ROA of 8.25-8.5%. Key risk: geopolitical/macroeconomic uncertainty could impact borrower behavior, though management sees minimal exposure.
Key Numbers
X-Bucket Collections
99.3%
+?% QoQ
Helped contain forward flows and stabilize NPAs.
Slippage Ratio
0.7%
-0.39pp QoQ
Dropped from 1.09% in Q3, reflecting improving asset quality.
Current Bucket Proportion
82.69%
+0.92pp QoQ
Customers in current bucket increased from 81.77% in Q3.
Management Guidance
AUM growth of ~20% for FY27
Management expects AUM to grow around 20% in FY27, driven by pent-up demand and improved collections.
Management guidance growthCredit cost guidance of 1.7-1.75% for FY27
Credit cost expected to be 1.7-1.75% of average AUM, with steady state of 1.5-1.6% over next 2-3 years.
Management guidance marginsROA of 8.25-8.5% for FY27
Return on average assets expected to be in the range of 8.25-8.5% for the current financial year.
Management guidance marginsDisbursements target of ₹6,200-6,400 crore for FY27
To achieve 20% AUM growth, disbursements need to be around ₹6,200-6,400 crore, up from ~₹5,000 crore in FY26.
Management guidance growthKey Risks
Geopolitical/macroeconomic uncertainty
Global geopolitical tensions could impact borrower behavior, though management sees minimal direct exposure.
medium · analyst_questionPotential overleveraging in MFI sector
Overleveraging in microfinance could continue to spill over into secured loan portfolios, affecting asset quality.
medium · analyst_questionSenior management exits
A senior management exit during the year created overhang, but management downplays impact on performance.
low · management_commentaryCost of funds may not decline further
Geopolitical challenges and liquidity uncertainty may limit further reduction in cost of funds in FY27.
medium · management_commentaryNotable Quotes
The worst is behind us and the coming quarters will see us moving in one direction onwards and upwards.
Men may come and men may go, but we go forever.
We are very confident that we have bounced back in the best manner possible. We have taken the right set of actions.
Frequently Asked Questions
What was Five Star Business's revenue in Q4 FY26?
Five Star Business reported revenue of — in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Five Star Business management give for FY27?
AUM growth of ~20% for FY27: Management expects AUM to grow around 20% in FY27, driven by pent-up demand and improved collections. Credit cost guidance of 1.7-1.75% for FY27: Credit cost expected to be 1.7-1.75% of average AUM, with steady state of 1.5-1.6% over next 2-3 years. ROA of 8.25-8.5% for FY27: Return on average assets expected to be in the range of 8.25-8.5% for the current financial year. Disbursements target of ₹6,200-6,400 crore for FY27: To achieve 20% AUM growth, disbursements need to be around ₹6,200-6,400 crore, up from ~₹5,000 crore in FY26.
What are the key risks for Five Star Business in FY27?
Key risks include Geopolitical/macroeconomic uncertainty — Global geopolitical tensions could impact borrower behavior, though management sees minimal direct exposure.; Potential overleveraging in MFI sector — Overleveraging in microfinance could continue to spill over into secured loan portfolios, affecting asset quality.; Senior management exits — A senior management exit during the year created overhang, but management downplays impact on performance.; Cost of funds may not decline further — Geopolitical challenges and liquidity uncertainty may limit further reduction in cost of funds in FY27..
Did Five Star Business meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Five Star Business Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.