Five-Star Business Finance Ltd (BOM:543663) Q3 2026 Earnings Call Highlights: Navigating …

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• Portfolio Quality: Current portfolio proportion increased from 81.67% in September to 81.77% in December.

• Collection Efficiency: Unique customer collection efficiency stable at 95.1%; overall collection efficiency at 96.6%.

• Unique Customer Collection Efficiency (Excluding NPA): Increased from 96.5% in Q2 to 97.26% in Q3.

• Current Book Collection Efficiency: Increased from 98.5% in Q2 to 99.01% in Q3.

• Stage 3/NPA Recoveries: Amounted to 23 crores in Q3.

• Credit Cost: Increased marginally from 1.34% in Q2 to 1.44% in Q3.

• Branch and Collection Officer Expansion: Added 35 branches and 678 business and collection officers in Q3; total collection officers increased to 2,452.

• Disbursements: Stood at 976 crores, 18% lower compared to the previous quarter.

• Incremental Debt: Availment of 460 crores at a cost of 8.19%.

• Cost of Funds: Dropped from 9.63% to 9.12% year-over-year.

• Liquidity Buffer: Robust liquidity of INR 2,276 crores.

• Net Profit (PAT): 277 crores, 3% lower compared to the previous quarter.

• Return on Assets (ROA): 7%.

• Return on Equity (ROE): 15.8%.

• Net Worth: 7,083 crores as of December.

Release Date: January 29, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Five-Star Business Finance Ltd (BOM:543663) has seen a marginal improvement in portfolio quality, with the current proportion of the portfolio increasing from 81.67% in September to 81.77% in December.

• The company reported stable collection efficiency, with unique customer collection efficiency at 95.1% and overall collection efficiency at 96.6%.

• The cost of incremental debt has decreased slightly to 8.19%, which is lower than the previous quarter, indicating better financial management.

• Five-Star Business Finance Ltd (BOM:543663) has maintained a robust liquidity position with INR 2,276 crores on the balance sheet.

• The company has signed a loan agreement with the Asian Development Bank for a $100 million sanction limit, enhancing its financial flexibility.

• Slippages in Stage 3 or NPA remain slightly elevated, indicating persistent stress among some borrowers.

• Credit costs have increased marginally from 1.34% in Q2 to 1.44% in Q3, reflecting ongoing challenges in managing loan quality.

• Disbursements during the quarter were 18% lower compared to the previous quarter, indicating a slowdown in growth.

• The company’s ROA has decreased from 8% to 7%, and ROE has dropped to 15.8%, showing a decline in profitability.

• The company is facing a behavioral crisis among borrowers, which is prolonging the recovery process and impacting overall performance.