Five-Star Business Finance Ltd

Q4 FY26Finance

Five-Star Business Finance Q4 FY26 earnings call: Revenue & Margins

Q4 FY26 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 around 20% AUM growth for FY27, aiming to grow from approximately INR13,000 crores to about INR16,000 crores. Management expects AUM growth of around 20% for FY27, with potential to exceed this as confidence improves.

From Five-Star Business Finance Ltd's Q4 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

The company targets around 20% AUM growth for FY27, aiming to grow from approximately INR13,000 crores to about INR16,000 crores.
Management is confident of sustaining 18-20% growth for at least the next two to three years.
Pent-up demand and low base effects support this growth outlook.
Plans to open 60 to 75 new branches in FY27, focusing on Tier 1 and Tier 2 cities, especially in states like Maharashtra, Rajasthan, Gujarat, UP, and Chhattisgarh.
Disbursements are expected to increase to INR6,500 crores - INR7,000 crores in FY27, up from INR5,000 crores last year.

2 more points management made on revenue & sales performance

Profitability & Margins

Management expects AUM growth of around 20% for FY27, with potential to exceed this as confidence improves.
Medium-term growth outlook (next 2-3 years) is around 18-20%, with possible upsides beyond 20% if asset quality and credit cost remain strong.
Disbursements for FY27 are targeted between INR 6,500 to 7,000 crores, reflecting pent-up demand and focus on quality customers.
PAT grew 2% for the full year FY26 despite challenges; strong collections and asset quality improvements expected to support earnings growth.
ROA guidance is 8.25%-8.5% for FY27, with steady-state levels around 8%-8.25%. ROE remains strong at about 16%.
Credit cost guided at 1.5%-1.6%, steady-state level, potentially improving with better customer profiles.

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

The company plans to continue branch expansion with 60 to 75 new branches in the current financial year, focusing on Tier 1 and Tier 2 cities in Maharashtra, Rajasthan, Gujarat, UP, and Chhattisgarh.
Earlier, 96 branches were opened in a tough lending period; now a smaller, focused expansion is planned to leverage existing infrastructure.
The branch network expansion aims to improve proximity to customers, reduce competition, and strengthen the foundation for growth.
No explicit mention of large-scale capital expenditure beyond branch expansion.

2 more points management made on capital expenditure plans

Top-ranked in Finance

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

Five-Star Business Finance Limited raised $100 million from Asian Development Bank (ADB) during the quarter, with $50 million already drawn and $50 million available to draw over the next financial year.
The cost of funds for this borrowing was slightly higher due to hedging costs.
There was incremental debt availed amounting to INR 928 crores during the quarter at an all-inclusive cost of 8.53%.
No specific mention of planned future equity fundraises.
Management emphasized strong lender confidence, as evidenced by the ADB line and other borrowings.

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 from Five-Star Business Finance Limited's Q4 FY26 earnings call does not mention any details regarding the current or expected order book or pending orders. The discussion primarily focuses on: - Loan disbursement, growth strategies, and branch expansion plans. - Portfolio composition and ticket sizes (mainly INR 3-5 lakh range).

2 more points management made on order book & pipeline

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 FY26 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?

The company plans to continue branch expansion with 60 to 75 new branches in the current financial year, focusing on Tier 1 and Tier 2 cities in Maharashtra, Rajasthan, Gujarat, UP, and Chhattisgarh.

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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.