Any current/future new fundraising through debt or equity?

The Board has approved a fundraise through issuance of non-convertible debentures (NCDs) up to INR 50 crores, aimed at business growth, not refinancing. The company is in the process of increasing its borrowing limit from INR 700 crores to INR 1,000 crores to support business growth. There is an ongoing process of equity raise, with engagements with different prospects underway; however, no official announcement will be made until all approvals are in place. Equity infusion is hoped to be completed within the current financial year, subject to approvals. The company is exploring different inst

Any current/future capex/capital investment/strategic investment?

No new products or geographies are planned; the company is well-diversified and does not see the need for further expansion currently. The company focuses on strengthening capitalization levels, with ongoing engagement for equity raising expected to materialize in the current financial year, subject to approvals. Increase in authorized capital from INR 50 crores to INR 125 crores approved by the Board, subject to shareholder approval. Approved issuance of non-convertible debentures up to INR 50 crores targeted for growth purposes, not refinancing. Investments focus on improving lending

Future growth expectations in sales/revenue/volumes?

Star Housing Finance is optimistic about a good financial year, aiming to leverage H2 which includes festival and harvesting seasons with high activity in semi-urban and rural areas. Disbursements are ramping up steadily after a slow Q3 and Q4 in the previous year; INR 20 crores were disbursed in the last 1.5 months, with expectations for further increase. The company plans calibrated growth to avoid sharp spikes and ensure sustainable scaling. Growing the loan book is a key focus, supported by increased borrowing limits from INR 700 crores to INR 1,000 crores, and issuing NCDs for growth capi

Future growth expectations in earnings/operating earnings/profits/EPS?

Star Housing Finance is optimistic about the financial year and expects to capitalize on festival and harvesting seasons in H2 to boost business. They are focusing on rebuilding momentum lost in Q3 and Q4 of the previous year with steady disbursements and scaling up operations cautiously. Disbursements are ramping up gradually, with around INR 20 crores disbursed in 1.5 months of the current quarter. Profitability is expected to improve with operational profit registered in Q4 and in Q1 FY '26 (excluding one-time income last year). Asset quality improvement and disciplined underwriting/collect

Current/ Expected Orderbook/ Pending Orders?

The company is actively engaging with prospects for equity raising, but no official announcements have been made yet; capital raising is expected within the financial year subject to approvals. Board has approved an increase in borrowing limit from INR 700 crores to INR 1,000 crores to support growth. Liability pipeline is developing healthily with a mix of funds from financial institutions, public sector banks, and instruments including NCDs. No specific figures mentioned for current or pending orders but there is focus on building a diversified liability pipeline to support scaling up.

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Star Housing Finance LtdQ2 FY25Finance

Star Housing Finance Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹6.6P/E: 8.8Market Cap: ₹59 CrSector: Finance

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Star Housing Finance is optimistic about a good financial year, aiming to leverage H2 which includes festival and harvesting seasons with high activity in semi-urban and rural areas.
→Disbursements are ramping up steadily after a slow Q3 and Q4 in the previous year; INR 20 crores were disbursed in the last 1.5 months, with expectations for further increase.
→The company plans calibrated growth to avoid sharp spikes and ensure sustainable scaling.
→Growing the loan book is a key focus, supported by increased borrowing limits from INR 700 crores to INR 1,000 crores, and issuing NCDs for growth capital.
→Equity raising is ongoing to strengthen capitalization, with potential inflows expected in the current financial year pending approvals.
→Business expansion into National Capital Region and Tamil Nadu is targeted alongside maintaining existing geographies.
→Co-lending partnerships, such as with Vastu Housing Finance, are enhancing pipeline and business opportunities.

Margin guidance

Category 3

→Star Housing Finance is optimistic about the financial year and expects to capitalize on festival and harvesting seasons in H2 to boost business.
→They are focusing on rebuilding momentum lost in Q3 and Q4 of the previous year with steady disbursements and scaling up operations cautiously.
→Disbursements are ramping up gradually, with around INR 20 crores disbursed in 1.5 months of the current quarter.
→Profitability is expected to improve with operational profit registered in Q4 and in Q1 FY '26 (excluding one-time income last year).
→Asset quality improvement and disciplined underwriting/collection efforts support future earnings stability.
→Plans for equity infusion and debt raise (NCDs of INR 50 crores) indicate commitment to strengthening capitalization, which should support growth.
→No new products or geographies are planned, focusing on optimizing existing operations.
→Borrowing costs expected to remain stable around 12.5%-12.75%, with prospects for reduction upon rating upgrades.

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Fundraise plans

Yes

→The Board has approved a fundraise through issuance of non-convertible debentures (NCDs) up to INR 50 crores, aimed at business growth, not refinancing.
→The company is in the process of increasing its borrowing limit from INR 700 crores to INR 1,000 crores to support business growth.
→There is an ongoing process of equity raise, with engagements with different prospects underway; however, no official announcement will be made until all approvals are in place.
→Equity infusion is hoped to be completed within the current financial year, subject to approvals.
→The company is exploring different instruments and lenders to diversify funding sources, including financial institutions and public sector banks.
→Liability pipeline is developing well, with a blend of funds from varied lenders and instruments.

Order book

→The company is actively engaging with prospects for equity raising, but no official announcements have been made yet; capital raising is expected within the financial year subject to approvals.
→Board has approved an increase in borrowing limit from INR 700 crores to INR 1,000 crores to support growth.
→Liability pipeline is developing healthily with a mix of funds from financial institutions, public sector banks, and instruments including NCDs.
→No specific figures mentioned for current or pending orders but there is focus on building a diversified liability pipeline to support scaling up.
→Disbursements are ramping up gradually, with approximately INR 20 crores disbursed over 1.5 months recently, indicating growing loan originations.
→Co-lending partnership with Vastu Housing Finance has been initiated to boost the business pipeline and operations synergy.

Capex plans

→No new products or geographies are planned; the company is well-diversified and does not see the need for further expansion currently.
→The company focuses on strengthening capitalization levels, with ongoing engagement for equity raising expected to materialize in the current financial year, subject to approvals.
→Increase in authorized capital from INR 50 crores to INR 125 crores approved by the Board, subject to shareholder approval.
→Approved issuance of non-convertible debentures up to INR 50 crores targeted for growth purposes, not refinancing.
→Investments focus on improving lending platform, digitization of loan processing, and analytics to drive operating leverage and reduce unit costs.
→Emphasis on expanding direct branch origination and co-lending partnerships to diversify funding and reach.
→No specific capex or strategic investment beyond these areas was mentioned in the transcript.

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