Five-Star Business Finance Limited — Investor Meet, 04-08-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Five-Star Business Finance reported muted Q1 FY26 results: AUM at INR12,500 Cr, PAT at INR266 Cr. Credit costs rose to 1.3%, with FY26 guidance revised to 1.2-1.25%. Management identified overleveraged small borrowers as the pain point.

To counter this, the company is shifting focus from sub-3 lakh loans to the 5-10 lakh segment and targeting financially literate customers. Early collection improvements noted in July. They anticipate Q2 stabilization and a bounce back in growth and asset quality from H2. The FY26 guidance of 25% growth and 12-15% profit remains. CEO Ranga Krishnan is stepping down, with CMD Lakshmipathy Deenadayalan taking full operational charge.