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FIVESTAR - Five-Star Bus.Fi

📊 NSE: FIVESTAR 🏢 Finance & Investments 📅 Last Updated: 12/13/2025 22:07

📢 Recent Corporate Announcements

Five-Star Business Finance to Meet 3P Investment Managers on February 26

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 25 Feb 2026, 05:25 PM

Five-Star Business Finance Limited has scheduled a one-on-one physical meeting with 3P Investment Managers on February 26, 2026. This disclosure is a routine regulatory requirement under SEBI (LODR) Regulations 2015. The company has stated that discussions will be based on the investor presentation previously released on January 28, 2026. No unpublished price sensitive information (UPSI) is intended to be shared during this interaction.

One-on-one physical meeting scheduled with 3P Investment Managers.
Meeting date set for February 26, 2026, following the intimation on February 25.
Discussions will rely on the existing investor presentation dated January 28, 2026.
Compliance filing made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements).

💡 No immediate action is required as this is a routine investor relations event. Investors may review the January 28 presentation for insights into the company's current strategy.

Five-Star Business Finance Seeks Approval for Director Appointments via Postal Ballot

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 19 Feb 2026, 03:24 PM

Five-Star Business Finance Limited has issued a postal ballot notice to seek shareholder approval for two key board positions. The company proposes the appointment of Ms. Rajeshwari Shankar as a Non-Executive Independent Director for a five-year term starting February 2, 2026. Additionally, it seeks the re-appointment of Mr. Srinivasaraghavan Thiruvallur Thattai for a second five-year term beginning August 25, 2026. The e-voting period for these special resolutions is scheduled from February 20, 2026, to March 21, 2026, with results expected by March 24, 2026.

Appointment of Ms. Rajeshwari Shankar as Non-Executive Independent Director for a 5-year term until February 2031.
Re-appointment of Mr. Srinivasaraghavan Thiruvallur Thattai for a second 5-year term starting August 2026.
E-voting period is set for 30 days, commencing February 20, 2026, and ending March 21, 2026.
The cut-off date for determining shareholder eligibility for voting was February 13, 2026.

💡 Investors should note these are standard governance procedures and monitor the voting results on March 24, 2026, for confirmation of board stability.

Five-Star Business Finance to Meet Laburnum Capital on February 20, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 18 Feb 2026, 01:22 PM

Five-Star Business Finance Limited has scheduled a one-on-one physical meeting with Laburnum Capital on February 20, 2026. The meeting is part of the company's regular investor relations activities as per SEBI (LODR) Regulations. The company has explicitly stated that no unpublished price sensitive information (UPSI) will be discussed. Discussions will be based on the investor presentation already made public on January 28, 2026.

One-on-one physical meeting scheduled with Laburnum Capital.
Meeting date set for February 20, 2026.
Discussions to be based on the investor presentation dated January 28, 2026.
Compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.

💡 No immediate action is required as this is a routine institutional meeting. Investors may review the January 28 presentation to understand the current business outlook.

Five-Star Business Finance to Meet Ishana Capital on February 19, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 17 Feb 2026, 05:17 PM

Five-Star Business Finance Limited (FIVESTAR) has scheduled a one-on-one virtual meeting with Ishana Capital on February 19, 2026. This disclosure is a routine filing under SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The company has stated that discussions will be based solely on publicly available information, specifically referencing the investor presentation uploaded on January 28, 2026. No unpublished price sensitive information (UPSI) is intended to be shared during this interaction.

One-on-one virtual meeting scheduled with Ishana Capital for February 19, 2026.
Discussions will be based on the investor presentation previously released on January 28, 2026.
The company confirmed that no unpublished price sensitive information (UPSI) will be discussed.
Disclosure made pursuant to Regulation 30(6) of SEBI (LODR) Regulations, 2015.

💡 No immediate action is required as this is a routine institutional investor meeting. Investors may review the January 28 investor presentation on the company website for current business insights.

Five-Star Business Finance to Meet Norwest Venture Partners on February 17, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 16 Feb 2026, 06:09 PM

Five-Star Business Finance Limited has announced a one-on-one physical meeting with Norwest Venture Partners scheduled for February 17, 2026. This interaction is part of the company's routine investor relations activities under SEBI LODR regulations. The management will base discussions on publicly available information, specifically referencing the investor presentation released on January 28, 2026. No unpublished price sensitive information (UPSI) is intended to be shared during this session.

One-on-one physical meeting scheduled with Norwest Venture Partners on February 17, 2026.
Compliance disclosure made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements).
Discussions to be based on the existing Investor Presentation dated January 28, 2026.
Company confirms that no unpublished price sensitive information will be discussed.

💡 This is a routine regulatory filing for an investor meeting; no immediate action is required. Investors may review the January 28 investor presentation to understand the current business trajectory.

Five-Star Business Finance to Meet Fidelity, Kotak MF, and Max Life on Feb 13

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 12 Feb 2026, 12:34 PM

Five-Star Business Finance Limited has scheduled one-on-one physical meetings with three major institutional investors in Mumbai on February 13, 2026. The participating entities include Fidelity, Kotak Mutual Fund, and Max Life Insurance. These meetings are part of the company's regular investor engagement program following its January 28, 2026, investor presentation. The company has explicitly stated that no unpublished price-sensitive information (UPSI) will be discussed during these sessions.

One-on-one physical meetings scheduled with Fidelity, Kotak MF, and Max Life Insurance.
Meetings are set to take place in Mumbai on February 13, 2026.
Discussions will be strictly based on publicly available information and the Jan 28 presentation.
Disclosure made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements).

💡 No immediate action is required as this is a routine regulatory disclosure. Investors may review the company's January 28 investor presentation to understand the current business outlook.

Five-Star Business Finance Allots 21,870 Equity Shares Under ESOP Scheme

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 12 Feb 2026, 12:20 PM

Five-Star Business Finance Limited has allotted 21,870 equity shares of face value INR 1 each following the exercise of employee stock options under its 2018 scheme. This allotment increases the company's total paid-up share capital from 29,45,44,298 to 29,45,66,168 equity shares. The exercise prices for these options were set at INR 1 and INR 67.44 per share, resulting in a total realization of INR 2,54,410. These new shares will rank pari-passu with existing equity shares and are currently in the process of being listed.

Allotment of 21,870 equity shares of face value INR 1 each pursuant to ESOP exercise
Total paid-up share capital increased to INR 29,45,66,168
Total money realized by the company from this exercise is INR 2,54,410
Exercise prices for the allotment were split between INR 1 (18,370 shares) and INR 67.44 (3,500 shares)

💡 No action is required as this is a routine administrative allotment with negligible equity dilution for existing shareholders.

Five-Star Business Finance Q3 FY26: PAT at ₹277 Cr; Collection Efficiency Improves to 99.01%

🔵 WATCH ⭐ 8/10

EARNINGS 📅 03 Feb 2026, 12:57 PM

Five-Star Business Finance reported a PAT of ₹277 crores for Q3 FY26, a marginal 1% YoY increase, while deliberately slowing disbursements to ₹976 crores to focus on asset quality. Collection efficiency on the current book improved to 99.01%, and the current portfolio proportion rose slightly to 81.77%, signaling stabilization in softer buckets. The company successfully reduced its cost of funds by 50 bps YoY to 9.12% and secured a $100 million sanction from the Asian Development Bank. Management expects to resume growth acceleration within the next 1-2 quarters as collection frameworks fully mature.

PAT for Q3 FY26 stood at ₹277 crores with a healthy ROA of 7% and ROE of 15.8%.
Disbursements decreased 18% QoQ to ₹976 crores as the company prioritized collection vertical strengthening.
Unique customer collection efficiency (excluding NPAs) improved from 96.5% to 97.26% QoQ.
Cost of incremental debt reached a low of 8.19%, while total net worth crossed the ₹7,000 crore milestone.
Collection workforce expanded significantly to 2,452 officers compared to 1,329 in the previous year.

💡 Investors should look for a reversal in the disbursement slowdown in H1 FY27 as a signal of management's confidence in asset quality. The significant reduction in cost of funds and strong liquidity provide a solid cushion against current micro-finance sector headwinds.

Five-Star Business Finance Releases Q3 FY26 Earnings Call Audio Recording

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 29 Jan 2026, 04:14 PM

Five-Star Business Finance Limited has released the audio recording of its earnings conference call for the quarter and nine months ended December 31, 2025. The call was held on January 29, 2026, following the company's Q3 FY26 financial results announcement. This disclosure is a standard regulatory requirement under SEBI (LODR) Regulations, 2015. Investors can now access management's detailed commentary on business performance and future outlook via the company's website.

Audio recording of the Q3 FY26 earnings call made available on January 29, 2026.
The call covers financial performance for the quarter and nine-month period ending December 31, 2025.
Filing is in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Management insights and Q&A session are accessible through the company's investor relations portal.

💡 Investors should listen to the recording to understand management's guidance on asset quality and loan book growth. This is a routine compliance filing and does not necessitate immediate trading action.

Five-Star Business Finance Reports Nil Deviation in Fund Utilization for Q3 FY26

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 28 Jan 2026, 06:11 PM

Five-Star Business Finance Limited has submitted its statement of nil deviation regarding the utilization of funds raised via preferential share warrants. The company originally raised a total of 31.57 crore, with 25% ( 7.89 crore) received as upfront consideration in October 2024. During the quarter ended December 31, 2025, no warrants were converted into equity shares, resulting in no new fund inflows. The Audit Committee has confirmed that all previously received funds have been utilized strictly according to the objects stated in the AGM notice.

Confirmed zero deviation or variation in the use of proceeds from the October 2024 preferential issue.
Total issue size for the share warrants is 31.57 crore, with 7.89 crore already utilized.
No proceeds were received during the quarter ended December 31, 2025, as no warrant holders exercised conversion options.
The remaining 75% balance ( 577.50 per warrant) is expected as and when conversion options are exercised within the 18-month tenure.
The statement has been reviewed and approved by the company's Audit Committee without any adverse comments.

💡 This is a routine regulatory filing confirming that the company is adhering to its stated financial objectives. Investors should monitor future warrant conversions which will provide additional capital to the company.

FIVESTAR Q3FY26: AUM Grows 16% YoY to ₹1.29 Lakh Cr; Asset Quality Weakens as GNPA Hits 3.18%

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 28 Jan 2026, 06:06 PM

Five-Star Business Finance reported a 16% YoY growth in Assets Under Management (AUM) reaching ₹1,29,641 Mn for Q3FY26. However, Profit After Tax (PAT) growth was muted at just 1% YoY (₹2,770 Mn) due to a significant deterioration in asset quality. Gross Stage 3 assets (GNPA) rose sharply to 3.18% from 1.62% a year ago, and 30+ DPD increased to 12.81%. While the company continues its physical expansion with 835 branches, profitability metrics like ROA and ROE have seen notable compression.

AUM increased 16% YoY to ₹129,641 Mn, though quarterly disbursements fell 18% QoQ to ₹9,764 Mn.
Gross Stage 3 assets (GNPA) deteriorated to 3.18% compared to 1.62% in Q3FY25 and 2.64% in Q2FY26.
Net Interest Margin (NIM) compressed by 52 bps YoY to 16.04%, impacting overall profitability.
Return on Assets (ROA) dropped to 7.00% from 8.10% YoY, while Return on Equity (ROE) fell to 15.80%.
Operational footprint expanded to 835 branches across 11 states, adding 106 branches over the last 12 months.

💡 Investors should exercise caution as the sharp rise in NPAs and 30+ DPD suggests rising credit stress in the micro-entrepreneur segment. It is advisable to wait for signs of stabilization in asset quality and collection efficiency before increasing exposure.

Five-Star Business Finance Q3 PAT at ₹277 Cr; GNPA Rises to 3.18% Amid Collection Focus

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 28 Jan 2026, 06:01 PM

Five-Star Business Finance reported a modest 1% YoY PAT growth to ₹277 Cr for Q3FY26, while AUM grew 16% YoY to ₹12,964 Cr. Asset quality saw significant pressure as Gross Stage 3 assets spiked to 3.18% from 1.62% YoY, leading management to intentionally reduce disbursements by 18% QoQ to focus on collections. Despite the asset quality stress, the company maintained a healthy RoA of 7.00% and saw a sharp improvement in the cost of incremental debt to 8.19%. The company is aggressively expanding its collection vertical, nearly doubling its collection officer headcount YoY to 2,452.

AUM grew 16% YoY to ₹12,964 Cr, though disbursements fell 18% QoQ to ₹976 Cr due to a strategic shift toward collections.
Gross Stage 3 assets increased to 3.18% vs 1.62% YoY; Net Stage 3 assets rose to 1.94% vs 0.81% YoY.
Return on Assets (RoA) compressed to 7.00% from 8.10% YoY, while RoE dropped to 15.80% from 18.49% YoY.
Cost of funds improved to 9.12% from 9.63% YoY, supported by a low incremental debt cost of 8.19% during the quarter.
Branch network expanded to 835 branches across 11 states with 35 new branches added in Q3.

💡 Investors should exercise caution as the sharp rise in NPAs and the intentional slowdown in disbursements indicate significant stress in the borrower segment. Monitor Q4 results closely to see if the expanded collection team can successfully roll back slippages and stabilize asset quality as guided by management.

Five-Star Business Finance Appoints Ms. Rajeshwari Shankar and Re-appoints Mr. T.T. Srinivasaraghavan

🟢 POSITIVE ⭐ 4/10

MANAGEMENT 📅 28 Jan 2026, 05:55 PM

Five-Star Business Finance has strengthened its board by appointing Ms. Rajeshwari Shankar as an Independent Director for a five-year term starting February 2, 2026. The company also approved the re-appointment of Mr. Srinivasaraghavan Thiruvallur Thattai for a second five-year term beginning August 25, 2026. Ms. Shankar brings over 30 years of experience in statutory audits and corporate governance, while Mr. Thattai, an industry veteran from Sundaram Finance, continues his role as chair of the Risk Management Committee. These appointments are subject to shareholder approval and signify a commitment to robust governance.

Ms. Rajeshwari Shankar appointed as Additional Independent Director for a 5-year term starting Feb 2, 2026
Mr. Srinivasaraghavan T.T. re-appointed for a second 5-year term effective Aug 25, 2026
Ms. Shankar is a Chartered Accountant with 30+ years of experience in audit and governance for major banks
Mr. Thattai currently chairs the Risk Management and Customer Service Committees at the company
Both appointments are subject to shareholder approval as per SEBI LODR regulations

💡 Investors should view these appointments as a positive move toward maintaining high standards of corporate governance and risk oversight. No immediate action is required as these are routine board-level enhancements.

Five-Star Business Finance Appoints Ms. Rajeshwari Shankar as Independent Director for 5 Years

🟢 POSITIVE ⭐ 4/10

MANAGEMENT 📅 28 Jan 2026, 05:55 PM

Five-Star Business Finance has announced the appointment of Ms. Rajeshwari Shankar as an Additional Independent Director for a five-year term effective February 2, 2026. Additionally, the board approved the re-appointment of Mr. Srinivasaraghavan Thiruvallur Thattai for a second five-year term starting August 25, 2026. Ms. Shankar brings over 30 years of experience in statutory audits and corporate governance, while Mr. Thattai continues to provide expertise from his background in the finance and insurance sectors. These appointments are subject to shareholder approval and aim to strengthen the company's governance framework.

Appointment of Ms. Rajeshwari Shankar as Independent Director for a 5-year term starting Feb 2, 2026
Re-appointment of Mr. Srinivasaraghavan Thiruvallur Thattai for a second 5-year term starting Aug 25, 2026
Ms. Shankar brings over 30 years of experience in audit, governance, and financial reporting
Mr. Thattai currently serves on the boards of Sundaram Finance and Sundaram Home Finance
Both appointments are subject to the approval of shareholders

💡 No immediate action is required as these are routine governance appointments. Investors should view the addition of a senior audit professional as a positive step for financial oversight and board diversity.

Five-Star Business Finance Q3 PAT at ₹277 Cr; Asset Quality Weakens as GNPA Rises to 3.18%

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 28 Jan 2026, 05:28 PM

Five-Star Business Finance reported a marginal year-on-year net profit growth to ₹277 crore for Q3 FY26, though profit declined sequentially from ₹286 crore in Q2. Total income grew by 12.5% YoY to ₹822 crore, but the bottom line was pressured by a significant spike in impairment costs, which rose to ₹57 crore from ₹23 crore in the previous year's quarter. Most concerning for investors is the sharp deterioration in asset quality, with Gross Stage 3 assets climbing to 3.18% from 1.79% in March 2025. However, the company remains exceptionally well-capitalized with a CRAR of 51.63%.

Total Income for Q3 FY26 increased 12.5% YoY to ₹822.22 crore.
Net Profit stood at ₹277.03 crore, a sequential decline of 3.2% from ₹286.14 crore in Q2 FY26.
Gross Stage 3 Assets (GNPA) ratio deteriorated significantly to 3.18% compared to 1.79% in March 2025.
Impairment on financial instruments spiked to ₹57.10 crore in Q3 FY26 versus ₹23.29 crore in Q3 FY25.
Capital Adequacy Ratio (CRAR) remains very strong at 51.63% with a low Debt-Equity ratio of 1.16.

💡 Investors should monitor the rising NPA trend closely as it indicates increasing credit stress in the small business lending segment. While the company has a massive capital cushion, the rising credit costs are likely to cap near-term stock performance until asset quality stabilizes.

View All FIVESTAR Announcements on Live Market Tracking →

💰 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.