Five-Star Business Finance Limited (FIVESTAR)
₹506.15 -1.38% last close, 16 Oct
Q2 FY27 results
📅 Next results: 26 Oct 2026 (board meeting)Five-Star Business Finance Limited's board meets on 26 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Five-Star Business' net interest income was ₹657 Cr (+9.6% year on year, +3.4% on the previous quarter), and net profit ₹271 Cr (+2.0% year on year).
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹657 | +9.6% | +3.4% |
| Operating profit | ₹362 | — | — |
| Net profit | ₹271 | +2.0% | +0.9% |
| EPS (₹) | 9.19 | +1.7% | +0.8% |
FIVESTAR delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 50.45% of the FIVESTAR shares traded on NSE were taken to delivery, against the stock's own 20-session average of 50.61%. That is close to its usual level. Volume was 0.4 times its average, well below normal.
Delivery in the last 5 sessions: 60.4% · 43.7% · 56.9% · 57.1% · 50.5%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Five-Star Business Finance has scheduled a 1-on-1 virtual investor meeting with InCred AMC on September 25, 2026. The company stated that discussions will be based strictly on publicly available information, referencing its investor presentation uploaded on July 25, 2026. No unpublished price-sensitive information (UPSI) will be shared during the interaction. This filing is a procedural compliance intimation under Regulation 30 of SEBI LODR.
- 1-on-1 virtual meeting scheduled with InCred AMC
- Meeting date set for September 25, 2026
- Discussions to rely on existing investor presentation filed on July 25, 2026
- Company confirmed no unpublished price sensitive information (UPSI) will be discussed
Five-Star Business Finance Limited has scheduled a virtual one-on-one meeting with institutional investor Capital Group on September 29, 2026. The discussions will center on publicly available information and the existing investor presentation dated July 25, 2026. No unpublished price sensitive information (UPSI) will be shared. This represents routine investor interaction with no immediate financial impact on the company's ₹15,803 Cr market capitalization.
- Virtual 1-on-1 meeting scheduled with Capital Group for September 29, 2026
- Discussions to rely on the existing investor presentation submitted on July 25, 2026
- Filing confirms that no unpublished price sensitive information (UPSI) will be discussed
Five-Star Business Finance Limited has intimated an upcoming 1-on-1 virtual meeting with Burman Capital scheduled for September 18, 2026. The company stated that discussions will be based on publicly available information and its existing investor presentation uploaded on July 25, 2026. No unpublished price sensitive information (UPSI) is intended to be discussed. This is a standard institutional investor interaction filing under SEBI LODR Regulation 30.
- 1-on-1 virtual meeting scheduled with Burman Capital
- Meeting date set for September 18, 2026
- Discussions to rely on public Investor Presentation dated July 25, 2026
- No Unpublished Price Sensitive Information (UPSI) to be shared
Five-Star Business Finance Limited has allotted 7,040 equity shares of face value INR 1.00 each pursuant to its Associate Stock Option Scheme, 2018. The allotment consists of 7,000 shares exercised at INR 132.072 each and 40 shares exercised at INR 1.00 each. Following this allotment, the paid-up share capital increased marginally from INR 29,51,88,618 to INR 29,51,95,658. The dilution is negligible and represents a routine administrative action.
- Allotment of 7,040 equity shares of face value INR 1.00 under the 2018 ESOP scheme
- Exercise prices include 7,000 shares at INR 132.072 and 40 shares at INR 1.00
- Paid-up share capital expanded from INR 29,51,88,618 to INR 29,51,95,658
- Allotted shares rank pari-passu with the existing equity base
Five-Star Business Finance has informed the exchanges of a scheduled 1-on-1 virtual investor meeting with BoB BNP Paribas MF on September 10, 2026. The discussions will rely strictly on publicly available information, referencing the investor presentation previously disclosed on July 25, 2026. The company confirmed that no unpublished price sensitive information (UPSI) will be shared. This represents a standard compliance filing under SEBI LODR Regulation 30.
- 1-on-1 virtual meeting scheduled with BoB BNP Paribas MF
- Meeting date set for September 10, 2026
- Discussions to reference investor presentation filed on July 25, 2026
- No unpublished price sensitive information (UPSI) to be shared
Five-Star Business Finance Limited has scheduled physical one-on-one meetings with Franklin Templeton India, Dolat Capital, and Fidelity on September 07, 2026. The Fidelity interaction will include a physical branch visit. The discussions will be restricted to publicly available information, referencing the investor presentation dated July 25, 2026.
- One-on-one physical meeting scheduled with Franklin Templeton India on September 07, 2026
- One-on-one physical meeting scheduled with Dolat Capital on September 07, 2026
- Physical branch visit and meeting scheduled with Fidelity on September 07, 2026
- Discussions to rely strictly on publicly available information with no UPSI shared
Five-Star Business Finance Limited has scheduled a physical 1-on-1 meeting with institutional investor New Mark Capital on September 03, 2026. The discussions will rely strictly on publicly available information, referencing the investor presentation previously disclosed on July 25, 2026. The company confirmed that no unpublished price sensitive information (UPSI) will be shared. This filing is a standard regulatory intimation under SEBI LODR Regulations.
- Physical 1-on-1 meeting scheduled with New Mark Capital on September 03, 2026.
- Discussions based on existing investor presentation filed on July 25, 2026.
- Company confirmed that no unpublished price sensitive information (UPSI) will be discussed.
Five-Star Business Finance has submitted the voting results and Scrutinizer's report for its 42nd Annual General Meeting held on August 31, 2026. All 8 resolutions were approved with the requisite majority, reflecting strong institutional and promoter support. Key resolutions passed include the adoption of FY26 financial statements, declaration of final dividend for FY26, statutory auditor appointment, and enabling approvals for borrowing limits, asset charges, and private placement of NCDs. Total voting turnout stood at 73.01% across 295,188,618 eligible shares.
- All 8 resolutions passed with overwhelming majority (>95% approval across all items).
- Shareholder turnout reached 73.01% with 215,529,956 votes polled out of 295,188,618 total shares.
- Enabling resolutions for borrowing limits, asset charges, and private placement of NCDs approved with 99.99% favor.
- Final dividend for FY26 approved unanimously with 100% of votes polled in favor.
- Appointment of Mr. Sreeram Ranganathan Iyer as Non-Executive Independent Director passed with 99.50% approval.
Five-Star Business Finance concluded its 42nd Annual General Meeting on August 31, 2026, transacting eight key agenda items. Key shareholder approvals sought include a final dividend of ₹2 per share for FY26, an enabling borrowing limit of up to ₹13,000 crore, and a private placement limit for Non-Convertible Debentures (NCDs) of up to ₹5,000 crore. Additionally, shareholders considered the appointment of M/s Suri & Co as joint statutory auditors for three financial years (FY27 to FY29). Formal e-voting results and the scrutinizer's report will be declared within two working days.
- Shareholder voting conducted for an enabling borrowing limit and charge creation of up to ₹13,000 crore under Section 180 of the Companies Act, 2013
- Enabling resolution proposed for raising up to ₹5,000 crore via private placement of NCDs in one or more tranches
- Final dividend approval of ₹2 per equity share transacted for the financial year ended March 31, 2026
- M/s Suri & Co proposed as Joint Statutory Auditors for a period of 3 consecutive financial years (FY27 to FY29)
- Appointment of Mr. Sreeram Ranganathan Iyer as Non-Executive Independent Director for a 5-year term from July 25, 2026, to July 24, 2031
Five-Star Business Finance Limited has allotted 650 equity shares to employees following the exercise of stock options under the Five-Star Associate Stock Option Scheme, 2018. The allotment was approved by the Business & Resource Committee on August 12, 2026. The shares were issued at an exercise price of INR 1.00 per share, which is equal to the face value. This is a routine administrative action with negligible impact on the company's total share capital.
- Allotment of 650 equity shares of face value INR 1.00 each on August 12, 2026
- Exercise price for the current allotment fixed at INR 1.00 per share
- Total paid-up share capital increased from INR 29,51,87,968 to INR 29,51,88,618
- Shares issued under the Five-Star Associate Stock Option Scheme, 2018, which was ratified in September 2023
Five-Star Business Finance has submitted its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26, confirming a total turnover of ₹3,245.97 Cr and a net worth of ₹7,380.15 Cr. The company expanded its physical footprint to 844 offices across 10 states, up from 748 in the previous year, supporting its 100% domestic secured lending business. The report highlights a workforce of 14,159 employees and a conservative risk approach with Loan-to-Value (LTV) ratios maintained at approximately 50%. While operations are robust, the company recorded 956 customer complaints during the year, with 151 still pending resolution at year-end.
- Operational network expanded to 844 offices across 10 states as of March 31, 2026.
- Total turnover for FY 2025-26 reached ₹3,245.97 Cr with a net worth of ₹7,380.15 Cr.
- Total employee count stands at 14,159, of which 13,824 are permanent staff.
- Collateral security remains high with over 95% of loans secured against self-occupied residential properties.
- Customer grievance management saw 956 complaints filed during the year, with an 84% resolution rate.
Five-Star Business Finance has submitted its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26, providing a detailed look at its ESG and operational metrics. The company expanded its footprint to 844 offices across 10 states, supported by a workforce of 14,159 employees. Lending remains 100% focused on secured small business loans with a conservative Loan-to-Value (LTV) ratio of approximately 50% at origination. The report also highlights that 805 out of 956 customer complaints were resolved during the year, with 151 still pending.
- Operational network reached 844 offices across 10 states as of March 31, 2026
- Total workforce increased to 14,159 employees, of which 13,824 are permanent staff
- Maintains a conservative risk profile with ~50% Loan-to-Value (LTV) at origination
- Handled 956 customer complaints during FY26, with 151 (15.8%) pending resolution at year-end
- Total water consumption for the period recorded at 179,040.56 KL
Five-Star Business Finance has issued its 42nd AGM notice scheduled for August 31, 2026. Key resolutions include a final dividend of ₹2 per share (200% of face value) and a significant proposal to fix borrowing limits at ₹13,000 Crores. This borrowing limit represents approximately 176% of the company's current net worth of ₹7,381 Cr, providing substantial headroom for its 15-17% projected growth. The company also seeks to appoint M/s Suri & Co as Joint Statutory Auditors for a three-year term.
- Final dividend of ₹2 per equity share (200% of face value) recommended for FY 2025-26.
- Proposed special resolution to increase borrowing limits to ₹13,000 Crores to fund lending operations.
- AGM scheduled for August 31, 2026, with remote e-voting starting August 28, 2026.
- Record date for dividend eligibility was fixed as July 31, 2026.
- Appointment of M/s Suri & Co as Joint Statutory Auditors for a period of 3 consecutive financial years (FY27-FY29).
Five-Star Business Finance Limited has scheduled a virtual 1-on-1 meeting with Sameeksha Capital for August 06, 2026. The company clarified that discussions will be based on publicly available information, specifically referencing the investor presentation uploaded on July 25, 2026. This is a routine regulatory disclosure under SEBI LODR Regulations, and no unpublished price-sensitive information (UPSI) is intended to be shared. The company currently operates with a market capitalization of approximately Rs 16,127 Cr and a TTM revenue of Rs 3,246 Cr.
- Virtual 1-on-1 meeting scheduled with Sameeksha Capital for August 06, 2026
- Discussions to be based on the investor presentation previously uploaded on July 25, 2026
- Company maintains a network of 748 branches as of March 2025, up from 520 in the previous year
- TTM PAT stands at Rs 1,098 Cr with a P/E ratio of 14.7
Five-Star Business Finance reported its highest-ever quarterly disbursements of Rs 1,496 Cr for Q1 FY27, a 23% sequential increase. The company's AUM grew 4% QoQ to Rs 13,722 Cr, supported by reaching a milestone of 500,000 active customers. Asset quality showed signs of improvement with the 30+ DPD book reducing to 12.38% from 12.69% in the previous quarter. Management highlighted a 15 bps reduction in the cost of funds to 8.80%, helping maintain spreads despite a slight drop in lending yields.
- Achieved record quarterly disbursements of Rs 1,496 Cr, representing 23% QoQ and 16% YoY growth
- AUM grew to Rs 13,722 Cr, with June 2026 alone contributing Rs 670 Cr in disbursements
- Asset quality improved as 30+ DPD reduced to 12.38% from 12.69% sequentially
- Cost of funds on the book decreased by 15 bps to 8.80% for Q1 FY27
- Branch network expanded to 856 branches, with 12 new branches added primarily in Maharashtra
Financial Performance
Revenue Growth by Segment
The gross loan portfolio (secured MSME loans) grew 23% YoY to INR 11,877 Cr in FY25 and further increased 18% YoY to INR 12,847.1 Cr in Q2FY26. Interest income for Q2FY26 was INR 773.1 Cr, representing a 14% YoY increase.
Geographic Revenue Split
Operations originated in Tamil Nadu; while specific regional percentage splits are not provided, the company is actively diversifying its footprint across semi-urban and rural markets via 748 branches to reduce regional concentration.
Profitability Margins
Net Interest Margin (NIM) was 16.32% in FY25, slightly down from 16.45% in FY24. The PAT margin was approximately 37.4% based on a PAT of INR 1,072 Cr on total income of INR 2,866 Cr in FY25.
EBITDA Margin
Pre-provision operating profit (PPOP) was INR 1,520 Cr in FY25, a 29.8% increase from INR 1,171 Cr in FY24, reflecting strong core profitability growth despite rising operational investments.
Capital Expenditure
Significant historical investment was made in expanding the branch network from 520 to 748 branches and increasing the workforce to 11,934 employees in FY25; specific INR Cr values for future capital expenditure are not disclosed.
Credit Rating & Borrowing
Ratings are reaffirmed at [ICRA]AA- (Stable) and CARE AA- (Positive). Borrowing costs are managed by diversifying into ECBs (INR 76 Cr) and mutual funds to secure competitive rates below the 23% IRR charged on loans.
Operational Drivers
Raw Materials
Debt Capital (Bank Borrowings and Debt Securities) represents the primary 'raw material' for lending operations; interest expense on these borrowings is the primary cost, with total borrowings standing at INR 8,376 Cr as of Q2FY26.
Import Sources
Funding is sourced domestically from Indian public and private banks and internationally via External Commercial Borrowings (ECB) of INR 76 Cr, representing 0.86% of total borrowings.
Key Suppliers
Key lenders providing capital include State Bank of India, Bank of Baroda, Union Bank of India, Indian Bank, Canara Bank, Bank of India, Bank of Maharashtra, HDFC MF, Nomura Asset Management, Goldman Sachs, and Vanguard.
Capacity Expansion
Current branch capacity is 748 branches as of March 2025, up 43.8% from 520 in the previous year. The company is expanding its footprint to support a projected 15-17% growth in the loan portfolio.
Raw Material Costs
Interest expense on borrowings was INR 7,331 Mn in H1FY26. The company strategically reduced incremental lending rates by 200 bps in FY25, necessitating the procurement of funds at competitive rates to protect interest spreads.
Manufacturing Efficiency
Operating efficiency, measured by operating expenses as a percentage of average total assets, improved to 5.24% in FY25 from 5.50% in FY24, reflecting better utilization of the expanded branch and employee network.
Logistics & Distribution
Distribution is managed through a network of 748 branches; operating expenses (including branch costs) were 5.24% of average total assets in FY25.
Strategic Growth
Expected Growth Rate
15-17%
Growth Strategy
The company plans to achieve growth by expanding its branch network (748 branches) and increasing its field officer count to 11,934. It is shifting focus toward higher ticket sizes (INR 3-10 lakh) to target a more resilient borrower profile and tapping into the INR 22 trillion addressable MSME market gap.
Products & Services
Secured MSME loans, mortgage-backed business loans, small business loans, and self-employed individual loans.
Brand Portfolio
Five-Star Business Finance
New Products/Services
Focusing on higher ticket size loans (INR 3-10 lakh) to improve asset quality; specific revenue contribution percentages for this shift are not explicitly disclosed.
Market Expansion
Expansion into semi-urban and rapidly developing rural areas across India, increasing branch count from 520 to 748 in one year to tap into the INR 22 trillion MSME market.
Market Share & Ranking
The company addresses a 2% portion of the 'addressed' MSME market, with a total addressable market (TAM) of INR 22 trillion.
External Factors
Industry Trends
NBFC growth is expected to moderate to 15-17% (a 600-800 bps decline) due to regulatory tightening and household indebtedness. The industry is shifting toward 'Quality Growth' and digital-first models.
Competitive Landscape
Competition is increasing in the MSME segment, prompting the company to adjust its credit cost guidance to 1.25-1.35% and NPA guidance to 2.25-2.5% to remain competitive.
Competitive Moat
Durable moat includes a conservative 50% LTV ratio, which provides a significant safety buffer against asset quality deterioration. This is sustainable because it ensures collateral value significantly exceeds loan amounts.
Macro Economic Sensitivity
Sensitive to household indebtedness and over-leverage in the retail segment, which led to a revision in credit cost guidance from 0.75% to 1.25-1.35%.
Consumer Behavior
Micro-entrepreneurs are increasingly transitioning from informal to formal credit channels, creating a large untapped market opportunity of INR 22 trillion.
Geopolitical Risks
Global economic outlook and trade tariffs are noted as external factors that could impact the Indian economy and borrower repayment capabilities.
Regulatory & Governance
Industry Regulations
RBI Scale Based Regulation (Middle Layer) and intensified focus on customer protection and pricing disclosures require process recalibration and stricter operational compliance.
Environmental Compliance
ESG policy is in place with a focus on financial inclusion, with 25% of customers being new-to-credit; specific compliance costs in INR are not disclosed.
Taxation Policy Impact
Not explicitly disclosed; however, the company declared a 200% dividend in April 2025 based on strong PAT of INR 1,072 Cr.
Legal Contingencies
The company reports NIL divergences in multiple RBI inspections and has no auditor qualifications; specific pending court case values are not disclosed.
Risk Analysis
Key Uncertainties
Over-leverage in the sub-3 lakh segment is the key uncertainty, potentially increasing NPAs to 2.25-2.5% and credit costs to 1.35% if economic conditions for micro-entrepreneurs worsen.
Geographic Concentration Risk
Historically concentrated in Tamil Nadu; expansion to 748 branches is reducing this risk, though specific regional revenue percentages are not disclosed.
Third Party Dependencies
Diversified lender base including public banks (SBI, BoB) and private banks; ECB represents only 0.86% of borrowings, minimizing international dependency.
Technology Obsolescence Risk
Digital-first approach with enhanced IT infrastructure to support growth and ensure robust internal controls and audit trails to mitigate technology risks.
Credit & Counterparty Risk
Gross Stage 3 assets of 2.64% (INR 3,388 Mn) in Q2FY26, with a 51% provision coverage ratio to manage credit exposure quality.
