IndoStar Capital Finance LimitedQ1 FY27 Results & Financial Update
IndoStar Capital Finance Limited: Q1 FY27 consolidated results and company financials – revenue ₹363.87 Cr, PAT ₹11.47 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore IndoStar Capital 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
Business momentum remained strong on the asset side, with quarterly disbursements reaching ₹1,235 crore, marking a 44% expansion compared to the corresponding period in the previous fiscal year.
Total Assets under Management (AUM) expanded to ₹8,244 crore as of June 30, 2026, representing a 6% increase over Q1 FY26, propelled by sequential portfolio scaling in both vehicle finance and micro loans against property.
On a standalone basis, net interest income (NII) improved by 38.9% year-on-year to ₹219.5 crore, supported by enhanced portfolio yields and lower cost of funds.
The funding profile exhibited structural improvement as the weighted average cost of funds declined by 80 basis points year-on-year to 9.9% in Q1 FY27, while incremental cost of funds stood at 9.1%.
Asset quality metrics at the end of the quarter showed Gross Stage 3 assets at 4.84% and Net Stage 3 assets at 2.48%.
Operating expenses on a standalone basis stood at ₹129.4 crore, resulting in a pre-provision operating profit (PPOP) of ₹92.9 crore, which remained stable relative to the preceding quarter.
IndoStar Capital Finance delivered a consolidated profit after tax of INR 11.47 crore for the quarter ended June 30, 2026, alongside total income of INR 366.72 crore and revenue from operations of INR 363.87 crore.
01 · Business model
What does IndoStar Capital Finance do?
IndoStar Capital Finance Limited is a retail-focused, middle-layered non-banking finance company (NBFC) registered with the Reserve Bank of India, operating as a professionally managed and institutionally owned entity co-promoted by Brookfield and Everstone.
The company specializes in secured, high-yielding retail lending across Used Vehicle Finance and Micro Loans Against Property (M-LAP), serving the credit needs of underbanked, underserved, and income-generating customer segments.
Geographic operations concentrate on tier 3, tier 4, and tier 5 markets across India, leveraging a broad branch network and digital origination workflows to reach small business owners and commercial vehicle operators.
02 · Historical context
What shaped the business before this quarter
Previously, the company experienced restructuring pressures, reflected in a standalone net loss of INR 424.0 crore reported in Q4 FY26 before returning to positive net profitability in Q1 FY27.
Earlier, the weighted average cost of funds stood higher at 10.7% in Q1 FY26, before contracting to 9.9% by Q1 FY27 through liability management.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Total income | ₹366.72 Cr |
| Interest income | ₹329.98 Cr |
| Other income | ₹2.85 Cr |
| Profit before tax | ₹11.48 Cr |
| Profit after tax | ₹11.47 Cr |
| EPS | ₹0.71 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Quarterly disbursements reached ₹1,235 crore, reflecting a 44% increase compared to Q1 FY26.
Disbursements accelerated to INR 1,235 crore during Q1 FY27, representing a 44% year-on-year expansion over Q1 FY26.
Total AUM reached INR 8,244 crore as of June 30, 2026, reflecting a 6% growth compared to Q1 FY26.
Interest income for the quarter stood at INR 329.98 crore, complemented by other income of INR 2.85 crore.
NIM, spread, funding cost and credit cost
The weighted average cost of funds moderated to 9.9% in Q1 FY27 from 10.7% in Q1 FY26, delivering an 80 basis point improvement.
Standalone operating expenses were reported at ₹129.4 crore for the quarter, compared to ₹121.5 crore in Q4 FY26 and ₹139.3 crore in Q1 FY26.
Weighted average cost of funds declined by 80 basis points year-on-year to 9.9% in Q1 FY27 from 10.7% in Q1 FY26, with incremental cost of funds at 9.1%.
Standalone operating expenses stood at INR 129.4 crore for Q1 FY27, compared to INR 139.3 crore in Q1 FY26 and INR 121.5 crore in Q4 FY26.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
Focuses on underbanked, underserved, and income-generating customer segments across tier 3, 4, and 5 markets.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
Demonstrated a 3% quarter-on-quarter growth during Q1 FY27.
Scaled rapidly with a 24% quarter-on-quarter growth rate, supported by network expansion.
Vehicle Finance recorded a sequential quarterly growth of 3% during Q1 FY27.
Micro Loans Against Property (Micro LAP) achieved strong sequential momentum, posting 24% quarter-on-quarter growth.
Geography and market mix
The company added 14 branches during the quarter, taking the total branch count to 468 branches spread across 24 states and union territories.
Leveraging existing vehicle finance infrastructure, the Micro LAP branch count was scaled from 108 to 125 branches.
07 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
Enhanced the underwriting framework by refining customer selection filters, deploying proprietary scorecards, and strengthening early warning systems.
Advanced digital lending capabilities through E-Application, E-NACH, E-Agreement, and scorecard-based automated credit decisioning.
08 · Reported developments
What changed operationally
Disbursements grew 44% year-on-year to ₹1,235 crore.
Incremental cost of funds stood at 9.1%, driving down the overall weighted average cost of funds to 9.9%.
Disbursements grew 44% year-on-year to INR 1,235 crore, reflecting strong loan demand and origination momentum.
Delivered consolidated profit after tax of INR 11.47 crore and standalone profit after tax of INR 11.5 crore, recovering from the net loss registered in Q4 FY26.
09 · Pressure points & risks
What is not going smoothly
Gross Stage 3 assets stood at 4.84% and Net Stage 3 assets stood at 2.48% as of June 30, 2026.
10 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
Standalone debt-to-equity leverage stood at 1.5x as of June 30, 2026, unchanged from 1.5x in Q4 FY26 and down from 1.7x in Q1 FY26.
Standalone Capital Adequacy Ratio (CAR) was maintained at a robust 34.8% at the end of Q1 FY27.
Standalone Capital Adequacy Ratio (CAR) stood robust at 34.8% as of June 30, 2026, compared to 36.1% in Q4 FY26 and 32.9% in Q1 FY26.
11 · Previous-quarter changes
What changed since the previous quarter
Retail loan portfolios expanded quarter-on-quarter by 3% in Vehicle Finance and 24% in Micro LAP.
Transitioned from a net loss of INR 424.0 crore in Q4 FY26 to a net profit of INR 11.5 crore on a standalone basis in Q1 FY27.
Standalone operating expenses rose sequentially from INR 121.5 crore in Q4 FY26 to INR 129.4 crore in Q1 FY27.
12 · Key Q&A
The quarter, answered directly
What does IndoStar Capital Finance do?
IndoStar Capital Finance Limited is a retail-focused, middle-layered non-banking finance company (NBFC) registered with the Reserve Bank of India, operating as a professionally managed and institutionally owned entity co-promoted by Brookfield and Everstone.
What is the clearest takeaway from Q1 FY27?
Business momentum remained strong on the asset side, with quarterly disbursements reaching ₹1,235 crore, marking a 44% expansion compared to the corresponding period in the previous fiscal year.
What drove earnings or loan-book movement?
Quarterly disbursements reached ₹1,235 crore, reflecting a 44% increase compared to Q1 FY26.
What mattered most for margins, funding or credit cost?
The weighted average cost of funds moderated to 9.9% in Q1 FY27 from 10.7% in Q1 FY26, delivering an 80 basis point improvement.
What changed operationally beyond the headline numbers?
Enhanced the underwriting framework by refining customer selection filters, deploying proprietary scorecards, and strengthening early warning systems.
What are the main pressure points disclosed for the quarter?
Gross Stage 3 assets stood at 4.84% and Net Stage 3 assets stood at 2.48% as of June 30, 2026.
13 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Asset Quality Trajectory: Monitor subsequent quarterly movements in Gross Stage 3 and Net Stage 3 asset percentages.
- 02
Branch Expansion Execution: Track further scaling of the Micro LAP branch network and overall branch additions across tier 3, 4, and 5 markets.
- 03
Asset Quality Trajectory: Monitor the evolution of Gross Stage 3 and Net Stage 3 asset ratios from the current levels of 4.84% and 2.48%.
- 04
Cost of Funds Optimization: Track further changes in the weighted average cost of funds below 9.9% and incremental borrowing costs.
- 05
Segment Growth Execution: Observe quarterly growth rates in Vehicle Finance and Micro LAP alongside branch network scaling.
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