IndoStar Capital Finance LimitedQ2 FY27 Results & Financial Update
IndoStar Capital Finance Limited: Q2 FY27 consolidated results and company financials – revenue ₹381.97 Cr, PAT ₹13.18 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 Q2 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
For the quarter ended September 30, 2026 (Q2 FY27), IndoStar Capital Finance reported consolidated revenue from operations of INR 381.97 crore, representing a sequential increase of 4.97% compared to INR 363.87 crore in Q1 FY27.
Total income for Q2 FY27 stood at INR 382.09 crore, up 4.19% sequentially from INR 366.72 crore in the previous quarter.
Profit before tax (PBT) for the quarter rose by 14.90% sequentially to INR 13.19 crore from INR 11.48 crore in Q1 FY27.
Profit after tax (PAT) followed a similar trajectory, expanding 14.91% sequentially to INR 13.18 crore compared to INR 11.47 crore in the preceding quarter, yielding an earnings per share (EPS) of INR 0.82.
Finance costs moderated sequentially to INR 139.64 crore from INR 144.38 crore in Q1 FY27, reflecting stable borrowing costs and ongoing debt optimization.
Total Assets Under Management (AUM) expanded to INR 8,459 crore as of September 30, 2026, up from INR 8,244 crore at the end of Q1 FY27, driven by sustained retail disbursement momentum in vehicle finance and micro LAP.
Asset quality metrics reflected a Gross Stage 3 ratio of 4.5% and Net Stage 3 of 2.4% at the consolidated level, with an ECL provision coverage ratio on total loan assets maintained at 4.0%.
01 · Business model
What does IndoStar Capital Finance do?
IndoStar Capital Finance Limited is a retail-centric Non-Banking Financial Company (NBFC) backed by global private equity sponsors Brookfield and Everstone, focusing on vehicle financing and micro Loan Against Property (Micro LAP).
The company's primary revenue engine is its granular retail lending portfolio, spanning used and new commercial vehicles, passenger vehicles, construction equipment, and farm equipment across an extensive pan-India branch network.
IndoStar operates 475 branches across 24 states and union territories, maintaining a strong operational footprint targeting Tier III, IV, and V markets where formal credit penetration remains underserved.
The economic model focuses on high-yield asset origination supported by scorecard-led digital underwriting, risk-based pricing, and proactive collection workflows to compound profitability and drive operating leverage under Project LEAP.
02 · Historical context
What shaped the business before this quarter
During FY24 to FY25, IndoStar overhauled its credit processes, strengthened system-level controls, introduced risk-priced scorecard-led underwriting, launched Micro LAP in vehicle finance branches, and obtained an IRDAI corporate agency licence.
In FY26, the company divested its housing finance subsidiary, provided for stressed assets, completed warrant conversions that bolstered its capital adequacy ratio to 36.1% and debt-to-equity to 1.5x, and rebuilt its leadership bench.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Total income | ₹382.09 Cr | ₹366.72 Cr |
| Interest income | ₹341.36 Cr | ₹329.98 Cr |
| Other income | ₹0.12 Cr | ₹2.85 Cr |
| Provisions | ₹19.77 Cr | — |
| Profit before tax | ₹13.19 Cr | ₹11.48 Cr |
| Profit after tax | ₹13.18 Cr | ₹11.47 Cr |
| EPS | ₹0.82 | ₹0.71 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Total Assets Under Management grew to INR 8,459 crore in Q2 FY27 from INR 8,244 crore in Q1 FY27, supported by robust retail disbursements totaling INR 1,399 crore during the quarter.
Vehicle finance disbursements reached INR 1,325 crore in Q2 FY27, with cumulative vehicle finance AUM rising to INR 7,923 crore across commercial vehicles, passenger vehicles, construction equipment, and farm equipment.
Micro LAP AUM scaled to INR 280 crore across 4,135 live accounts as of Q2 FY27, backed by co-housing in 154 vehicle finance branches across 10 states and union territories.
NIM, spread, funding cost and credit cost
The company maintained a healthy yield on loan assets at 17.6% in Q2 FY27, underpinned by high-yield retail asset orientation in Tier III to V locations.
Weighted average cost of borrowings remained stable at 9.7% in Q2 FY27, while incremental cost of borrowings stood at 9.1%, supporting net interest margin expansion to 8.9%.
Project LEAP (Lean, Efficient, Agile, Profitable) drove operational discipline, supporting operating leverage as the branch network expanded to 475 branches and employee count reached 5,075.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
Prime customers with a CIBIL score above 725 accounted for 85% of the customer base in Q2 FY27, up from 80% in Q2 FY26.
The company added 20,218 incremental customers during Q2 FY27, bringing total outstanding live accounts to approximately 178,000.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
Vehicle finance disbursements in Q2 FY27 comprised small, light & intermediate commercial vehicles (31%), medium & heavy commercial vehicles (27%), cars (15%), construction equipment (11%), farm equipment (12%), and others at 4%.
Micro LAP portfolio composition as of Q2 FY27 showed 79% self-employed customers and 21% salaried borrowers, with 98% of property collateral classified as residential.
Geography and market mix
Geographic AUM mix for Q2 FY27 stood at 47% in the South, 22% in the West, 19% in the East, and 12% in the North.
The total branch network stood at 475 across 24 states and union territories, with over 70% of branches situated in Tier III to V markets.
07 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
Digital adoption advanced significantly in Q2 FY27, with e-NACH adoption at 93%, e-Agreement usage at 92%, and e-Application penetration reaching 86%.
The company deployed flow-forward collection propensity models across delinquency buckets and maintained scorecard-led underwriting for commercial vehicles and cars, targeting 70% scorecard coverage by March 2027.
08 · Reported developments
What changed operationally
Consolidated PAT expanded by 14.91% sequentially to INR 13.18 crore in Q2 FY27, driven by higher net interest income and moderated finance costs.
A capital adequacy ratio of 36.0% and a low debt-to-equity ratio of 1.55x provide strong balance-sheet capacity to fund future portfolio expansion.
09 · Pressure points & risks
What is not going smoothly
Gross Stage 3 assets stood at 4.5% with Net Stage 3 at 2.4% in Q2 FY27, reflecting ongoing transition management in legacy pre-tightening asset books where 67% of gross NPAs originate from pre-Q4 FY25 originations.
10 · Items worth noticing
The line items that can distort a quick read
Total provisions of INR 19.77 crore were recognized during Q2 FY27 under expected credit loss (ECL) frameworks, including management overlays.
11 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Available liquidity as of September 30, 2026, stood at INR 827 crore, comprising INR 336 crore in undrawn credit lines and INR 491 crore in treasury assets, debt mutual funds, and cash equivalents.
Capital allocation & funding
Total borrowings stood at INR 5,704 crore as of September 30, 2026, diversified across banks (41%), retail (2%), mutual funds (9%), and private placement/term loans, maintaining long-term credit ratings of AA- (Stable) by CARE Edge and CRISIL.
Capital adequacy ratio (CAR) stood at a robust 36.0% as of September 30, 2026, well above the statutory requirement of 15%, providing substantial headroom for growth without equity dilution.
12 · Beyond the numbers
What changed beyond the numbers
Reported update
Sponsorship and Shareholding
Promoter holding stood at 70.33% as of September 2026, backed by Brookfield (BCP V Multiple Holdings at 55.94%) and Everstone (IndoStar Capital at 14.39%).
13 · Previous-quarter changes
What changed since the previous quarter
The branch network increased from 468 branches in Q1 FY27 to 475 branches in Q2 FY27, alongside an increase in headcount to 5,075 employees.
14 · Key Q&A
The quarter, answered directly
What does IndoStar Capital Finance do?
IndoStar Capital Finance Limited is a retail-centric Non-Banking Financial Company (NBFC) backed by global private equity sponsors Brookfield and Everstone, focusing on vehicle financing and micro Loan Against Property (Micro LAP).
What is the clearest takeaway from Q2 FY27?
For the quarter ended September 30, 2026 (Q2 FY27), IndoStar Capital Finance reported consolidated revenue from operations of INR 381.97 crore, representing a sequential increase of 4.97% compared to INR 363.87 crore in Q1 FY27.
What drove earnings or loan-book movement?
Total Assets Under Management grew to INR 8,459 crore in Q2 FY27 from INR 8,244 crore in Q1 FY27, supported by robust retail disbursements totaling INR 1,399 crore during the quarter.
What mattered most for margins, funding or credit cost?
The company maintained a healthy yield on loan assets at 17.6% in Q2 FY27, underpinned by high-yield retail asset orientation in Tier III to V locations.
What changed operationally beyond the headline numbers?
Digital adoption advanced significantly in Q2 FY27, with e-NACH adoption at 93%, e-Agreement usage at 92%, and e-Application penetration reaching 86%.
What are the main pressure points disclosed for the quarter?
Gross Stage 3 assets stood at 4.5% with Net Stage 3 at 2.4% in Q2 FY27, reflecting ongoing transition management in legacy pre-tightening asset books where 67% of gross NPAs originate from pre-Q4 FY25 originations.
15 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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16 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Trajectory of AUM growth in Vehicle Finance and Micro LAP segments through H2 FY27.
- 02
Progression of asset quality metrics and Stage 3 provision coverage ratios as legacy pre-tightening books amortize.
- 03
Execution of the data science roadmap including the targeted 70% scorecard coverage and 65% straight-through processing by March 2027.
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