IndoStar Capital Finance Limited (INDOSTAR)
₹194.58 -0.36% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, IndoStar Capital's net interest income was ₹186 Cr (+16.7% year on year, -13.7% on the previous quarter), and net profit ₹11.5 Cr (-97.9% year on year).
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹186 | +16.7% | -13.7% |
| Operating profit | ₹92.9 | — | — |
| Net profit | ₹11.5 | -97.9% | from loss |
| EPS (₹) | 0.71 | -98.2% | from loss |
INDOSTAR delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 59.3% of the INDOSTAR shares traded on NSE were taken to delivery, against the stock's own 20-session average of 57.83%. That is close to its usual level.
Delivery in the last 5 sessions: 58.6% · 55.9% · 50.4% · 65.0% · 59.3%
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
IndoStar Capital Finance Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate, issued by Registrar and Transfer Agent MUFG Intime India Private Limited, confirms that security certificates received for dematerialisation during the period were duly processed, accepted or rejected, and cancelled within regulatory timelines. This is a recurring administrative filing with no material impact on the company's financial or operational performance.
- Compliance certificate submitted under Regulation 74(5) for the quarter ended September 30, 2026
- Certificate received from Registrar and Transfer Agent MUFG Intime India Private Limited dated October 03, 2026
- Confirmation that dematerialised share certificates were verified, mutilated, and cancelled within prescribed timelines
IndoStar Capital Finance concluded its 17th Annual General Meeting on September 25, 2026, with all five resolutions passed by over 99.99% majority. Shareholders approved the standalone and consolidated audited financial statements for FY26 and re-appointed Mr. Aditya Hemant Joshi as Director. Additionally, a special resolution enabling the issuance of Non-Convertible Debentures (NCDs) via private placement was approved. Overall voter turnout stood at 77.67% of total voting rights, representing 12.56 crore votes polled out of 16.17 crore shares.
- All 5 AGM resolutions approved with over 99.99% votes in favour
- Special resolution passed for the issuance of Non-Convertible Debentures on a private placement basis
- Overall voter participation reached 77.67% with 12,55,62,217 votes polled across 16,16,70,107 shares
- Total shareholder count as of the record date (September 18, 2026) stood at 58,338
IndoStar Capital Finance announced that shareholders approved the appointment of S.R. Batliboi & Co. LLP (an EY affiliate) as Statutory Auditors for a 3-year term at the 17th AGM on September 25, 2026. The incoming auditors succeed M S K A & Associates LLP, who completed their statutory 3-year term pursuant to RBI guidelines for NBFCs. The new auditor will serve from the conclusion of the 17th AGM until the 20th AGM.
- Appointment of S.R. Batliboi & Co. LLP approved for a term of 3 consecutive years
- Term extends from the conclusion of the 17th AGM until the 20th AGM
- Outgoing auditors M S K A & Associates LLP completed their mandatory 3-year term
- Change complies with Reserve Bank of India NBFC Statutory Audit Directions, 2026
IndoStar Capital Finance Limited has approved the allotment of 14,703 equity shares of face value Rs 10 each following the exercise of stock options under its ESOP Plan 2018. Following this allotment, the company's paid-up equity share capital marginally increased to Rs 1,61,67,01,070, comprising 16,16,70,107 shares. The dilution represents less than 0.01% of the existing equity base, having negligible impact on per-share metrics.
- Allotment of 14,703 equity shares of face value Rs 10 each under IndoStar ESOP Plan 2018
- Paid-up share capital expanded from Rs 1,61,65,54,040 to Rs 1,61,67,01,070
- Total outstanding equity shares increased from 16,16,55,404 to 16,16,70,107 shares
- Approval granted on September 15, 2026, by MD & Executive Vice Chairman Randhir Singh under Board authority
IndoStar Capital Finance Limited has issued a communication informing shareholders and debenture holders without registered email addresses on how to access the FY2025-26 Annual Report and AGM Notice. The company's 17th Annual General Meeting (AGM) is scheduled to be held on Friday, September 25, 2026, at 11:00 AM IST via Video Conferencing/OAVM. This is a procedural disclosure in compliance with SEBI LODR Regulations 36(1)(b) and 58(1)(b).
- 17th Annual General Meeting scheduled for Friday, September 25, 2026, at 11:00 AM IST via Video Conferencing.
- Physical letters sent to unregistered shareholders and debenture holders with web-links and QR codes to access the FY2025-26 Annual Report.
- Complies with SEBI LODR Regulations 30, 36(1)(b), and 58(1)(b).
IndoStar Capital Finance Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26 pursuant to SEBI Listing Regulations. The company reported operational reach across 454 offices in 24 states, with a total headcount of 4,623 employees. Standalone turnover for the year was reported at Rs 1,393.58 Cr (Rs 1,39,358.33 lakhs) with net worth of Rs 3,766.05 Cr. The filing is a standard annual statutory disclosure and carries no direct financial or operational surprises.
- Operates through 454 offices across 24 states within India with zero international footprint.
- Total workforce stood at 4,623 employees (4,585 permanent) as of FY26-end.
- Permanent employee turnover rate rose to 44.26% in FY26 compared to 35.04% in FY25.
- Reported standalone turnover of Rs 1,39,358.33 lakhs and net worth of Rs 3,76,605.47 lakhs.
- Handled 2,064 customer complaints during FY26, with 53 pending resolution at year-end.
IndoStar Capital Finance Limited has issued the notice for its 17th Annual General Meeting (AGM) scheduled for September 25, 2026, alongside its FY25-26 Annual Report. The e-voting cut-off date is set for September 18, 2026, with remote voting open from September 21 to September 24, 2026. The annual report highlights a capital adequacy ratio of 36.1%, debt-to-equity of 1.5x, and an active footprint of 454 branches across 24 States and UTs. In addition, the company reported a ~48% reduction in delinquencies on CY2025 disbursements compared to CY2024.
- 17th Annual General Meeting scheduled for Friday, September 25, 2026 via Video Conferencing
- Eligibility cut-off date for e-voting is Friday, September 18, 2026
- Capital Adequacy stood at 36.1% and Debt-to-Equity improved to 1.5x at FY26 end
- Branch network reached 454 branches with frontline sales force expanded to ~1,600 as of March 31, 2026
- Reported ~48% reduction in delinquencies on CY2025 disbursals versus CY2024
IndoStar Capital Finance Limited has allotted 63,045 equity shares of face value ₹10 each following the exercise of stock options by eligible employees. The allotment is distributed across three schemes: ESOP Plan 2018 (15,045 shares), ESOP Plan 2016 (23,000 shares), and ESOP Plan 2012 (25,000 shares). This action increases the total paid-up equity share capital to 16,16,55,404 shares. The resulting equity dilution is negligible at approximately 0.04%, making it a routine administrative event.
- Total allotment of 63,045 equity shares of face value ₹10 each approved on August 12, 2026
- Allotment includes 15,045 shares under ESOP 2018, 23,000 under ESOP 2016, and 25,000 under ESOP 2012
- Paid-up equity capital increased from ₹1,61,59,23,590 to ₹1,61,65,54,040
- Total outstanding equity shares post-allotment stand at 16,16,55,404
- The dilution impact on existing shareholders is approximately 0.04%
IndoStar reported a 44% YoY growth in retail disbursements to 1,235 crore for Q1 FY27, driven by a strategic shift toward Used CV and Micro LAP segments. Asset quality is improving significantly, with the early delinquency ratio dropping to 2.29% from 5.55% a year ago. The 'new book' (loans originated after Jan 2025) now constitutes 68% of the AUM, with management expecting this to reach 85% by Q4 FY27. High-quality borrowers with CIBIL scores above 725 now make up 84% of the customer base, up from 63% in FY24.
- Retail disbursements grew 44% YoY to 1,235 crore in Q1 FY27.
- Early delinquency ratio improved to 2.29% from 5.55% in the same period last year.
- Micro LAP AUM reached 217 crore, a 3x increase compared to Q1 FY26.
- 80% of current NPAs are linked to the 'old book' originated before January 2025.
- Share of customers with CIBIL scores above 725 increased to 84% in Q1 FY27.
IndoStar Capital Finance has published the audio recording of its conference call held on July 30, 2026, regarding its Q1 FY27 financial results. This follows a volatile period where the company reported a significant net loss of ₹424 Cr in the quarter ended March 2026. The call likely addresses the company's ongoing transition from corporate lending to a retail-focused model targeting Used CV and Micro LAP. Investors can access the recording on the company's website to evaluate management's guidance on asset quality and the ₹6,000 Cr NCD issuance limit approved earlier.
- Conference call held on July 30, 2026, to discuss unaudited financial results for the quarter ended June 30, 2026
- Recording made available on the company website as per SEBI Regulation 30
- Company is navigating a retail shift after a ₹424 Cr loss in the previous quarter (Mar 2026)
- Management strategy focuses on Used CV and Micro LAP with a target growth rate of 40-50%
- Current GNPA stands at 4.52%, a key metric for recovery monitoring
IndoStar reported a consolidated PAT of ₹11.5 Cr for Q1 FY27, recovering from a heavy loss of ₹424 Cr in the previous quarter (Q4 FY26) which was impacted by accelerated provisioning. AUM grew 6% YoY to ₹8,244 Cr, driven by the company's strategic pivot toward retail segments like Used Vehicle Finance and Micro LAP. Net Interest Margins (NIM) improved significantly to 8.8% from 6.2% YoY, supported by a reduction in borrowing costs to 9.9%. However, asset quality showed slight deterioration with Gross Stage 3 assets rising to 4.8% from 4.0% YoY.
- AUM increased to ₹8,244 Cr in Q1 FY27, a 6% growth compared to ₹7,783 Cr in Q1 FY26
- Net Interest Margin (NIM) expanded to 8.8% from 6.2% YoY, driven by higher-yielding retail assets
- Gross Stage 3 assets rose to 4.8% compared to 4.0% in the same period last year
- Cost of borrowings improved to 9.9% from 10.7% in Q1 FY26
- Capital Adequacy Ratio remains robust at 34.8% with a low Debt/Equity ratio of 1.54x
IndoStar Capital Finance reported a strong operational recovery in Q1FY27, with disbursements growing 44% YoY to ₹1,235 crore. The company returned to a profit of ₹11.5 crore after a massive loss of ₹424 crore in the preceding quarter (Q4FY26). Net Interest Income (NII) rose 39% YoY to ₹219.5 crore, aided by an 80 bps reduction in the weighted average cost of funds to 9.9%. While AUM growth was modest at 6% YoY reaching ₹8,244 crore, the retail pivot is evident with Micro LAP growing 24% QoQ.
- Disbursements reached ₹1,235 crore, a 44% increase compared to Q1FY26.
- Net Interest Income (NII) grew 39% YoY to ₹219.5 crore, supported by improved yields.
- Weighted average cost of funds declined by 80 basis points YoY to 9.9%.
- Micro LAP segment showed significant momentum with 24% QoQ growth.
- Asset quality remains a monitorable with Gross Stage 3 assets at 4.84% and Net Stage 3 at 2.48%.
IndoStar Capital Finance reported a turnaround in Q1 FY27 with a Profit After Tax (PAT) of ₹11 crore, following a significant loss of ₹424 crore in the preceding quarter. Disbursements grew strongly by 44% YoY to ₹1,235 crore, driven by a strategic pivot toward retail segments like Used Vehicle Finance and Micro LAP. Net Interest Income (NII) rose 39% YoY to ₹219 crore, supported by an 80 bps reduction in the weighted average cost of funds to 9.9%. Asset quality remains a monitorable area with Gross Stage 3 assets at 4.84%.
- Disbursements reached ₹1,235 crore, representing a 44% growth compared to Q1 FY26.
- Net Interest Income (NII) increased to ₹219 crore, up 39% YoY from ₹158 crore.
- Weighted average cost of funds improved by 80 basis points YoY, declining to 9.9%.
- Micro LAP segment showed strong momentum with 24% QoQ growth in the retail loan portfolio.
- Branch network expanded to 468 locations across 24 states, adding 14 new branches in the quarter.
IndoStar Capital Finance has approved a significant fundraise of up to ₹6,000 crore through Non-Convertible Debentures (NCDs) via private placement, subject to shareholder approval. This proposed limit is substantial, representing approximately 233% of the company's current market capitalization (₹2,571 Cr). The board also recommended appointing S. R. Batliboi & Co. LLP as statutory auditors for a three-year term, following RBI's mandatory rotation norms. Additionally, the company confirmed that ₹600 crore raised in April 2026 has been fully utilized for onward lending.
- Proposed issuance of Non-Convertible Debentures (NCDs) for an amount not exceeding ₹6,000 crore in a year.
- Appointment of S. R. Batliboi & Co. LLP as Statutory Auditors for a 3-year term starting from the 17th AGM.
- Full utilization of ₹600 crore raised via three NCD tranches on April 23, 2026, for onward lending purposes.
- 17th Annual General Meeting (AGM) scheduled for September 25, 2026, to seek shareholder approvals.
- Subsidiary IndoStar Asset Advisory reported a net profit of ₹3.16 lakhs for the quarter ended June 30, 2026.
IndoStar Capital Finance has approved a significant fundraise limit of ₹6,000 crore through Non-Convertible Debentures (NCDs), representing approximately 233% of its current market capitalization. The company also reported its Q1 FY27 financial results and confirmed the full utilization of ₹600 crore raised in April 2026 for onward lending. Additionally, the board has proposed the appointment of S. R. Batliboi & Co. LLP as statutory auditors for a three-year term. These proposals are subject to shareholder approval at the upcoming AGM on September 25, 2026.
- Board approved a fresh NCD issuance limit of ₹6,000 crore for the year, subject to shareholder approval.
- Fully utilized ₹600 crore raised via NCDs in April 2026 for onward lending to customers.
- Proposed appointment of S. R. Batliboi & Co. LLP as Statutory Auditors for a 3-year term starting from the 17th AGM.
- 17th Annual General Meeting (AGM) scheduled for September 25, 2026, to ratify fundraise and auditor changes.
- Subsidiary IndoStar Asset Advisory reported a small net profit of ₹3.16 lakhs for the quarter ended June 30, 2026.
Financial Performance
Revenue Growth by Segment
Total income (net of interest) grew 36.5% YoY to INR 456 Cr in FY25 from INR 334 Cr in FY24. The company is shifting focus to retail segments, with Commercial Vehicle (CV) disbursements now comprising approximately 33.3% of total disbursements as the company diversifies into Passenger Vehicles, Construction Equipment, and Micro LAP.
Geographic Revenue Split
Not specifically disclosed in available documents, though the company operates a nationwide network including 48 upgraded micro-branches and maintains a presence in Mumbai (Registered Office).
Profitability Margins
Profitability has been subdued with a Return on Assets (RoA) of 0.5% in FY25 compared to 0.8% in FY24 and 2.2% in FY23. Net profit for Q2 FY26 was INR 10.4 Cr, representing a 42.2% decrease from INR 18 Cr in Q2 FY25. Yields on loans improved significantly to 18.1% in FY25 from 13.4% in FY23 due to the shift toward higher-yielding CV segments.
EBITDA Margin
Not explicitly provided as a percentage, but Net Interest Income is supported by a declining cost of funds which reached 10.2% in Q2 FY26 (down from 10.8% YoY). Incremental borrowing costs have further dropped to a range of 9.0% - 9.25%.
Capital Expenditure
The company maintains a strong capital base with a Capital Adequacy Ratio of 37.3% as of Q2 FY26. It recently completed the sale of its subsidiary, Niwas Housing Finance, in July 2025 to WITKOPEEND B.V. (an EQT affiliate) to reallocate capital toward core retail growth.
Credit Rating & Borrowing
The company faces debt obligations of INR 3,194 Cr (including interest) due within one year. Borrowing costs were 11.4% in FY25 but have trended down to 10.2% in Q2 FY26. The company successfully raised INR 265.59 Cr through its maiden public issue of Secured Redeemable NCDs in September 2024.
Operational Drivers
Raw Materials
As a financial services entity, the primary 'raw material' is capital/debt. Total borrowings are managed through NCDs (limit of INR 6,000 Cr approved), Commercial Papers, and bank lines.
Key Suppliers
Funding is sourced from various banks, money market investors, and through the public NCD issue which saw participation for INR 265.59 Cr.
Capacity Expansion
The company is expanding its retail reach by upgrading 48 micro-branches and increasing field sales staff to support the Micro LAP and Vehicle Finance businesses.
Raw Material Costs
Cost of funds (interest expense) is the primary operational cost, which stood at 10.2% in Q2 FY26. Management is focused on reducing this to improve lending spreads.
Manufacturing Efficiency
Operational efficiency is measured by digital adoption: 95% of Micro LAP and 27% of vehicle finance collections are processed via eNACH as of September 2025.
Logistics & Distribution
Distribution is driven by a network of branches and Direct Selling Agents (DSAs), with payouts aligned to market standards to drive disbursement momentum.
Strategic Growth
Expected Growth Rate
40-50%
Growth Strategy
The company expects H2 disbursements to be 1.4x to 1.5x of H1 disbursements. Strategy involves a total shift from corporate lending to a retail-focused model targeting Used CV and Micro LAP, supported by the sale of the housing finance subsidiary to focus management bandwidth and capital.
Products & Services
Used Commercial Vehicle (CV) loans, Micro Loan Against Property (LAP), Passenger Vehicle loans, Construction Equipment financing, and Farm Equipment loans.
Brand Portfolio
IndoStar, Indo Mitra (Customer App).
New Products/Services
Expansion into 'Prime' business segments and multi-product retail offerings using existing distribution strength.
Market Expansion
Focusing on growing the Micro LAP and Used CV book responsibly under tighter credit norms across its existing branch network.
Market Share & Ranking
Aims to be one of the top-performing retail NBFCs in India; specific market share percentage not disclosed.
Strategic Alliances
Majority owned by Brookfield Asset Management (56.20% stake) and Everstone Group (17.4%). The sale of Niwas Housing Finance was to an affiliate of BPEA EQT.
External Factors
Industry Trends
The NBFC industry is shifting toward retail and digital-first models. IndoStar is positioning itself as a multi-product retail lender to capture growth in the under-penetrated Micro LAP and used vehicle markets.
Competitive Landscape
Competes with other retail NBFCs and private banks in the CV and SME/LAP segments.
Competitive Moat
Moat is built on a strong capital base (37.3% CAR), backing from a global promoter (Brookfield), and a specialized distribution network for used CVs. Sustainability is driven by the transition to a granular retail book which reduces systemic risk.
Macro Economic Sensitivity
Highly sensitive to the macroeconomic environment and interest rate cycles, which affect both the cost of borrowing and the repayment capacity of CV operators and micro-enterprises.
Consumer Behavior
Increasing preference for digital self-service tools, evidenced by the 95% eNACH adoption in the Micro LAP segment.
Geopolitical Risks
Limited direct impact, though global fuel prices can affect the cash flows of the transport operator borrower segment.
Regulatory & Governance
Industry Regulations
Regulated by the RBI as a systemically important non-deposit taking NBFC. Must comply with GS3 (Gross Stage 3) reporting and Capital Adequacy norms (currently 37.3%).
Environmental Compliance
Direct environmental risk is low. The company has an ESG Working Committee and follows a digital-first model to minimize paper waste.
Taxation Policy Impact
Standard Indian corporate tax rates apply; specific effective tax rate for FY25 not detailed in the snippets.
Legal Contingencies
The company underwent a secretarial audit for FY25 which confirmed compliance with applicable statutory provisions. No specific pending court case values were disclosed in the provided text.
Risk Analysis
Key Uncertainties
Asset quality remains a primary risk, with GNPA at 4.52%. Failure to improve this could lead to higher credit costs, similar to the 12.4% credit cost seen in FY22.
Geographic Concentration Risk
While headquartered in Mumbai, the company is expanding its branch network to diversify geographic risk across India.
Third Party Dependencies
High dependency on banks for funding lines and on DSAs for lead generation and disbursements.
Technology Obsolescence Risk
Mitigated by active investment in the Indo Mitra app and digital collection tools; 100% score in RBI cybersecurity exercise indicates strong digital resilience.
Credit & Counterparty Risk
Exposure is diversified across retail borrowers in the CV and Micro LAP segments, reducing the impact of any single counterparty default.
