Indostar Capital Finance reports strong retail-focused growth in FY25

IndoStar Capital Finance Limited reported a 23% year-on-year increase in assets under management (AUM) to ₹7,963 crore for the financial year ended March 31, 2025. Disbursements also saw substantial growth, reaching ₹5,250 crore. The company's net profit after tax (PAT) was ₹52.6 crore, with a basic earnings per share of ₹3.86. Gross non-performing assets (GNPA) improved to 4.52%, while net non-performing assets (NNPA) stood at 2.46%.

A key highlight was the successful launch and scaling of the Micro Loan Against Property (Micro LAP) product, which achieved ₹52 crore in AUM with zero delinquencies in its first year. Vehicle finance AUM grew by 32% year-on-year to ₹7,401 crore. The company's strategic divestment of its housing finance subsidiary, Niwas Housing Finance Private Limited, for ₹1,750 crore, aims to bolster liquidity and enhance return on equity.

IndoStar maintained a strong capital adequacy ratio of 28.5% and diversified its funding sources, leading to a reduction in the incremental cost of borrowing to nearly 10% by year-end. The company also strengthened its digital infrastructure, including a new Loan Origination System (LOS), which reduced turnaround time for loan sanctioning to two days for Micro LAP.