Five-Star Business Finance LimitedQ1 FY27 Results & Financial Update
Five-Star Business Finance Limited: Q1 FY27 standalone results and company financials – revenue ₹828.98 Cr, PAT ₹271.41 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
Find an answer
Ask this result
Chart · Market context
Five-Star Business Finance price & chart
Market price₹516.05
1Y return—Price return
Loading market chart…
TradingView Lightweight Charts™ · Copyright © 2025 TradingView, Inc.TradingView
Market chartPrice chart temporarily unavailableThe price chart could not be loaded right now. The reported financial results remain available above.
Spotted a factual error?Tell us the number, date or statement and we will re-check the underlying records and calculations.Report an error
Quarterly Results AnalysisExplore Five-Star Business Finance Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
All-inclusive borrowing cost stood at 8.33%, bringing down the cost of funds on book to 8.80% from 8.95% in Q4 FY26, keeping spreads intact despite yield adjustments.
For the first quarter of fiscal year 2027 (ended June 30, 2026), Five-Star Business Finance Limited reported standalone financial performance via official exchange disclosures.
During Q1 FY27, the company registered total revenue from operations of INR 828.98 crore, accompanied by other income of INR 9.76 crore, taking total income to INR 838.74 crore.
The core lending operations generated interest income of INR 807.61 crore during the quarter, indicating active deployment across its target borrower segments.
01 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹828.98 Cr |
| Total income | ₹838.74 Cr |
| Profit before tax | ₹361.95 Cr |
| Profit after tax | ₹271.41 Cr |
| EPS | ₹9.18 |
02 · Why it moved
Why the quarter looked the way it did
What drove revenue
Interest income from lending operations stood at INR 807.61 crore for Q1 FY27, representing the primary driver of top-line earnings.
The company recorded other income of INR 9.76 crore during the quarter, contributing to total income of INR 838.74 crore.
What drove margins
Incremental cost of borrowing is guided at around 8.5%, with potential for another 20-30 bps compression assuming no repo rate increases.
Borrowing and interest expenses amounted to INR 171.51 crore, serving as a primary operational cost impacting net spreads.
Income tax provisions of INR 90.54 crore were incurred against a PBT of INR 361.95 crore, leading to an effective tax charge influencing final profitability.
03 · Demand, customers & order book
Where demand is coming from
Target ticket size mix is maintained at 25% near INR3 lakh, 50% around INR5 lakh, and 25% closer to INR10 lakh.
Active loan customer base crossed 500,000 as of June 30, 2026.
04 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Added 12 branches during the quarter (largely in Maharashtra), ending June with approximately 856 branches.
Segregation of business and collections verticals improved employee productivity and freed up business teams to focus on incremental log-ins.
05 · Reported developments
What changed operationally
Reported PAT of INR271 crores for the quarter with a net worth of INR7,653 crores and an ROA of 8.11%.
Achieved a 60 bps drop in 1-plus days past due and a 30 bps drop in 30-plus days past due books.
The company reported a healthy PAT of INR 271.41 crore for the standalone entity in Q1 FY27.
06 · Pressure points & risks
What is not going smoothly
Cost-to-assets ratio is running higher at around 6% due to competitive employee compensation adjustments and collection infrastructure investments, limiting immediate operating leverage.
07 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
The company is holding close to INR1,850 crores of liquidity on the balance sheet.
Capital allocation & funding
The company incurred INR 171.51 crore towards finance costs during the quarter to service borrowings.
08 · Management guidance & targets
What management is targeting from here
Management remains very confident of achieving full-year AUM growth guidance of around 20% comfortably.
Opex for the year will largely stay flat compared to last year, with cost-to-assets settling around 5.75% to 6% before declining to 5.25%-5.5% from FY28 onwards.
09 · Management call deep dive
What management said on the conference call
Operating takeaways
9 key pointsThe Board has placed emphasis on multi-product strategy, and the company plans to introduce 2-3 new products (with the first likely in the next 3 to 6 months) to mitigate single-product crisis exposure.
Target ticket size mix is maintained at 25% near INR3 lakh, 50% around INR5 lakh, and 25% closer to INR10 lakh.
Active loan customer base crossed 500,000 as of June 30, 2026.
Added 12 branches during the quarter (largely in Maharashtra), ending June with approximately 856 branches.
Segregation of business and collections verticals improved employee productivity and freed up business teams to focus on incremental log-ins.
Incremental cost of borrowing is guided at around 8.5%, with potential for another 20-30 bps compression assuming no repo rate increases.
The company is holding close to INR1,850 crores of liquidity on the balance sheet.
Management remains very confident of achieving full-year AUM growth guidance of around 20% comfortably.
Opex for the year will largely stay flat compared to last year, with cost-to-assets settling around 5.75% to 6% before declining to 5.25%-5.5% from FY28 onwards.
Important analyst Q&A
7 key pointsManagement clarified that opex stays elevated at 5.75%-6.0% due to employee compensation adjustments, with operating leverage expected only from FY28 onwards. Yield contraction is mostly complete, expected to settle around 22.25% due to NPA interest reversals.
Microfinance overlap has dropped from 20-21% to 16-17%. Debt-to-equity of 2x is targeted in the medium term (6 to 8 quarters out) considering internal net worth additions of INR1,100-1,200 crores annually.
Repayment rates ticked up to about 30% due to stronger collections and policy modifications allowing top-ups for good customers instead of mandatory full prepayment.
Expense growth for the year is projected at 20%-21% YoY, tracking Q1 levels as annual appraisals and increments have already been incorporated.
Debt levels moderated as Q1 is seasonally muted and lines are available; incremental cost of funds is modeled at 8.5% to factor in balance sheet leveraging.
Incentive structures retain a collection component for current dues among business staff, preserving collections DNA while separating arrears management.
Management targets an 18%-20% ROE through a steady-state ROA of 6%-6.5% and 3x leverage. Lending yields were cut in October 2024 to pass on lower borrowing costs, and future yield adjustments will follow borrowing cost trends rather than opex changes.
10 · Key Q&A
The quarter, answered directly
What is the clearest takeaway from Q1 FY27?
All-inclusive borrowing cost stood at 8.33%, bringing down the cost of funds on book to 8.80% from 8.95% in Q4 FY26, keeping spreads intact despite yield adjustments.
What drove revenue or demand?
Interest income from lending operations stood at INR 807.61 crore for Q1 FY27, representing the primary driver of top-line earnings.
What mattered most for margins or profitability?
Incremental cost of borrowing is guided at around 8.5%, with potential for another 20-30 bps compression assuming no repo rate increases.
What changed operationally beyond the headline numbers?
Added 12 branches during the quarter (largely in Maharashtra), ending June with approximately 856 branches.
What is management guiding or targeting from here?
Management remains very confident of achieving full-year AUM growth guidance of around 20% comfortably.
What are the main pressure points disclosed for the quarter?
Cost-to-assets ratio is running higher at around 6% due to competitive employee compensation adjustments and collection infrastructure investments, limiting immediate operating leverage.
11 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Starting point
Build your own next-quarter scenario
Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.
Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
Scenario output
Scenario revenue / income₹0 cr
Scenario profit after tax₹0 cr
Profit change vs base₹0 cr (0%)
Scenario margin0%
Growth needed to keep profit flat after this margin move0%
The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.
12 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Cost of Borrowings: Monitor future changes in finance costs (INR 171.51 crore in Q1 FY27) relative to interest income growth.
- 02
Profitability Trends: Track subsequent quarterly net profit after tax (PAT) and earnings per share (EPS) to evaluate sequential business momentum.
Learn the metrics
Need the concepts first?
Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.