Five-Star Business Finance reports strong Q2 FY26 performance

Five-Star Business Finance Limited reported unaudited financial results for Q2 and H1 FY26, showcasing an 18% year-on-year AUM growth to INR 128,471 Mn as of September 30, 2025. Profit After Tax (PAT) for Q2 FY26 increased by 7% year-on-year to INR 2,861 Mn, with H1 FY26 PAT reaching INR 5,524 Mn, a 6% increase. Despite a 4% year-on-year decrease in Q2 FY26 disbursements to INR 11,959 Mn, the company added 33 new branches, bringing the total to 800 across 11 states/UTs, and increased its headcount to 13,074.

Asset quality metrics for Q2 FY26 included Gross Stage 3 assets at 2.64% and Net Stage 3 assets at 1.46%. The provision coverage ratio on Stage 3 assets stood at 45.19%. Total borrowings, including debt securities, reached INR 8,376 Cr, with a liquidity buffer of INR 2,360 Cr. The company's capital adequacy remained robust at 51.04%, and its debt-equity ratio was 1.23. These results highlight Five-Star Business Finance's effective strategies in sourcing, credit underwriting, and risk oversight amidst challenging economic conditions.