Five-Star Business Finance Ltd

Q4 FY25Finance

Five-Star Business Finance Q4 FY25 earnings call: Revenue & Margins

Q4 FY25 earnings call: what management guided on revenue, margins and order book.

Price₹521

Market cap₹16.2K Cr

P/E14.7

Updated23 Aug 2026

Read4 min read

The short version

The company targets a 25% medium-term AUM (sales/volume) growth, driven by expansion in growth-inflection states like Central India and Maharashtra. For FY '26, earnings growth is expected to be slightly muted at 12% to 15%, reflecting 25% portfolio growth but impact of reduced yields.

From Five-Star Business Finance Ltd's Q4 FY25 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

The company targets a 25% medium-term AUM (sales/volume) growth, driven by expansion in growth-inflection states like Central India and Maharashtra.
Growth will be a mix of:
~5% productivity increase (loans per officer per month expected to rise from 2.6 to ~3)
~5% ticket size increase (average ticket size expected to inch up by 5-6% annually)
~15% acquisition of incremental customers via branch network expansion
Growth guidance for FY'26 is conservative due to macro-political risks and quality focus but can be raised if credit environment improves.
Earnings growth for FY'26 estimated around 12-15%, with ROA stable around 7.5-8%.

2 more points management made on revenue & sales performance

Profitability & Margins

For FY '26, earnings growth is expected to be slightly muted at 12% to 15%, reflecting 25% portfolio growth but impact of reduced yields.
ROA likely to remain stable around 7.5% to 8%, with no significant short-term increase expected.
ROE will move gradually, without sharp improvement in the near term.
Growth is driven by productivity improvements (~5%), ticket size increases (~5%), and incremental customers (~15%).
The company maintains a focus on quality over aggressive growth, with a conservative 25% AUM growth guidance for FY '26.

2 more points management made on profitability & margins

See what Five-Star Business Finance Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

- Capital work in progress includes INR62 crores for construction of a new head office building, involving demolition and new construction over the next few years (Page 11). - The company plans measured growth in new states, e.g., Gujarat, with limited branches (max 4) in the first 18-24 months before scaling up further (Page 22). - Discussions are underway to organically expand into affordable housing product later in FY '26, leveraging existing branch network and resources; potential increase in opex may occur but details are early (Pages 15-16). - No immediate plans to exit any customer segments; focus on incremental shifts to higher ticket sizes in existing segments (Pages 27-28). No explicit mention of large-scale or strategic acquisitions/investments besides organic growth and the new head office building project.

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Ranked on what management guided this quarter

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Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.

Fundraising & Capital Structure

The company has diversified its borrowing base to 47 lenders, reducing bank borrowings from 80% to 63% as of March 2025.
In the last quarter, incremental debt of about INR 700 crores was received, with total incremental borrowings of INR 1,100 crores, at an all-inclusive cost of 9.29%.
The incremental borrowing cost has dropped by 27 basis points compared to the previous quarter.
The company expects further reduction in incremental borrowing cost by 25 to 30 basis points during the current year.

2 more points management made on fundraising & capital structure

See what Five-Star Business Finance Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

The provided transcript for Five Star Business Finance Limited does not contain any specific information regarding current or expected order book or pending orders. The discussion primarily focuses on financial performance, portfolio growth, asset quality, collection efficiency, branch expansion, and regulatory impacts. There is no mention of order books or pending orders in the context of loan disbursement or any other business segment in the document.

What Five-Star Business Finance Ltd's management said in earlier quarters

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Frequently Asked Questions

What were Five-Star Business Finance Ltd Q4 FY25 results?

What is Five-Star Business Finance Ltd share price analysis?

Five-Star Business Finance Ltd currently shows a neutral. The stock trades at a P/E of 14.7 with a market cap of ₹16,167 Cr. Investors should review the full earnings analysis for detailed insights.

Is Five-Star Business Finance Ltd planning capital expenditure?

Capital work in progress includes INR62 crores for construction of a new head office building, involving demolition and new construction over the next few years (Page 11).

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.