IndoStar Capital Finance Limited — Results, 29-04-2025: Integrated Filing- Financial

IndoStar Capital Finance has announced a board meeting on May 16, 2025, to consider the financial results for the quarter and half-year.

Revenue rose sharply to Rs 1,410 Cr, up 27% YoY, driven chiefly by the commercial vehicle financing segment, which contributed Rs 1,256 Cr. SME and large corporate segments added Rs 52.8 Cr and Rs 26 Cr respectively, supporting the overall growth.

Net profit increased modestly by 4% to Rs 120.5 Cr, with EPS at Rs 8.86 (basic). Profit from continuing operations stood at Rs 52.5 Cr, while discontinued operations (Niwas Housing Finance) contributed Rs 68 Cr. Despite higher profits, margins were stable amid increased provisioning and employee costs.

Total expenses rose to Rs 1,357 Cr from Rs 1,037 Cr, primarily due to higher finance costs (Rs 740 Cr) and impairment charges (Rs 137.5 Cr). Employee expenses jumped to Rs 298 Cr, likely reflecting expansion in talent or branch network, while depreciation and other costs held steady.

Asset quality remains stable with gross Stage 3 ratio at 4.52% and net Stage 3 at 2.46%. Capital adequacy is strong at 28.46%, and leverage is moderate with a debt-equity ratio of 2.03x.

Loan book expanded robustly to Rs 7,216 Cr, supporting revenue growth, while cash balances declined to Rs 96 Cr. The balance sheet shows strong asset cover and compliance.

The group’s housing finance arm remains a discontinued operation pending sale but contributed significantly to PAT. Capital raising through convertible warrants worth over Rs 250 Cr strengthens the growth runway.

IndoStar’s performance signals stable to positive momentum with prudent risk management, solid capital buffers, and focused growth in commercial vehicle financing. Retail investors can view this as a well-managed NBFC with controlled asset quality risks and funding strength.