Five-Star Business Finance Ltd Q4 FY26 Earnings Analysis
Published 17 Aug 2026 | Finance | Market Cap: ₹16.2K Cr
Price
₹550
Market Cap
₹16.2K Cr
P/E Ratio
14.7
Earnings Summary
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.
📊 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.
- →Growth targets are considered conservative; there is potential for higher growth if asset quality and credit cost metrics improve.
- →The company plans to leverage existing infrastructure built over the last 2-3 years to support growth.
📈 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.
- →Operating expenses to assets ratio expected to remain stable around 7%-7.25% despite growth and investments.
- →Dividend declared at same level as last year, signaling confidence in steady profitability going forward.
🏗️ 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.
- →Investments in the collections vertical have been made to improve asset quality and recoveries.
- →No specific strategic investments or large capex beyond branch infrastructure and operational costs mentioned in the call.
💰 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.
- →The company is focusing on cost-effective, diversified funding through debt.
- →No explicit plans for new equity fundraising disclosed in this call.
📋 Order Book & Pipeline
Key Metrics
Frequently Asked Questions
What were Five-Star Business Finance Ltd Q4 FY26 results?
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.
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.
This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.