Risks
4 risks
Risk Intelligence
Geopolitical/macroeconomic uncertainty
View Risks →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.
bullish
high
Financial stats pending filing verification
2-Minute Summary
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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.
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Unique Customer Collection Efficiency
98.1%
+?% QoQ
One of the best in company history, indicating strong collection recovery.
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.
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Guidance and risk preview
Management expects AUM to grow around 20% in FY27, driven by pent-up demand and improved collections.
Global geopolitical tensions could impact borrower behavior, though management sees minimal direct exposure.
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