Net interest income (NII) climbed 10.2% year-on-year to ₹636.1 crore, up from ₹577.4 crore. Total income reached ₹839 crore, marking a 6% year-on-year increase, while profit before tax (PBT) grew by 2% to ₹362 crore.
The company announced its highest quarterly disbursement of ₹1,496 crore in Q1 FY27, reflecting a 23% sequential increase and a 16% rise year-over-year from ₹1,290 crore in Q1 FY26.
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Assets under management (AUM) totaled ₹13,722 crore as of June 30, 2026, representing a 10% year-on-year growth and a 4% sequential increase, distributed across 0.50 million active loans.
Five Star Business Finance reported a unique customer collection efficiency of 97.9% during the quarter, excluding non-performing assets (NPAs), down from 98.1% in Q4 FY26. X-bucket collections remained steady at 99.2%, down from 99.3% in the previous quarter.
The company’s current bucket AUM ratio improved to 83.30% in Q1 FY27, up from 82.69% in Q4 FY26. The slippage ratio maintained at 0.70%, while gross Stage 3 assets edged up slightly to 3.46% from 3.37% in the preceding quarter.
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Credit cost decreased to 1.85% of average AUM in Q1 FY27 from 1.88% in Q4 FY26. The company’s return on assets (RoAUM) was reported at 8.11%, down 26 basis points sequentially and 69 basis points year-on-year. Return on equity (RoE) stood at 14.46%, declining 63 basis points sequentially and 211 basis points year-over-year.
During the quarter, Five Star Business Finance expanded its branch network to 856 branches across 11 states and Union Territories, with the addition of 12 new branches.
The company secured additional debt of ₹450 crore during the quarter at a total cost of 8.33%. The overall cost of funds decreased to 8.80% in Q1 FY27 from 8.95% in Q4 FY26.
Total borrowings, including debt securities, were ₹7,866 crore as of June 2026, while the liquidity position was reported at ₹1,847 crore.
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The company had an expected credit loss (ECL) provision of ₹244 crore, excluding ECL for inter-corporate deposits, equating to 1.78% of the total AUM. Stage 3 provisions amounted to ₹191 crore, leading to a provision coverage ratio of 40.14% on Stage 3 assets.
Lakshmipathy Deenadayalan, Chairman & Managing Director, commented, “Q1 FY27 signifies a strong start to the new fiscal year for Five Star, anchored by robust disbursement momentum and stabilization trends established in Q4 FY26.
We achieved our best-ever quarterly disbursements at ₹1,496 crore, a 23% increase over the previous quarter and a 16% rise year-on-year. In terms of collections, several underlying metrics have shown visible improvement, reinforcing our confidence in the “Onwards and Upwards” trajectory.
On Friday (July 25), shares of Five-Star Business Finance Ltd closed at ₹536.00, gaining ₹1.65, or 0.31%, on the BSE.
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