IndoStar Capital Finance Limited — PPTs, 31-10-2025: Investor Presentation

IndoStar Capital Finance posted a solid operational performance in Q2FY26. Pre-Provision Operating Profit surged 86% YoY to ₹69.1 Cr, with Net Interest Income up 15.7% to ₹189.8 Cr. While Q2 PAT stood at ₹10.5 Cr (down from ₹18 Cr YoY), asset quality significantly improved; Gross Stage 3 fell to 3.0% and Net Stage 3 to 1.1%.

The company's strategy focuses on a retail-led, tech-driven model, centered on Vehicle Finance (93% AUM) and the fast-growing Micro LAP segment. Digital tools are enhancing efficiency across sourcing and collections. Notable developments include exiting Affordable Housing Finance to simplify the portfolio and investing ₹187 Cr in Security Receipts from a stressed asset sale.

Key metrics like Yield on Loan Assets (17.1%), Net Interest Margin (7.6%), and a lower Cost of Borrowings (10.2%) reflect operational strength. Capital Adequacy remains robust at 37.2%, and Q2 EPS stood at ₹2.0. Management is committed to disciplined execution and leveraging strong liquidity for future growth.