Five-Star Business Finance Limited — PPTs, 28-01-2026: Investor Presentation

**Business Performance:** Five-Star Business Finance's loan portfolio (AUM) grew 16% YoY to ₹12,964.1 Cr. They added 35 branches, reaching 835, and serve 0.49 million active accounts. However, Gross Stage 3 assets (NPA) rose significantly to 3.18% as of December 31, 2025, from 1.62% a year ago.

**Growth Drivers & Strategy:** Focusing on "Reaching the Unreached," Five-Star provides secured loans to small business owners with informal incomes. Strategies involve expanding their branch network and gradually increasing average loan ticket sizes (₹3.9 lakhs in Q3). All loans are 100% secured. Significant tech investments aim to streamline underwriting, collections, and reduce cash transactions.

**Recent Developments:** In the quarter, the company secured a $100 Million facility from the Asian Development Bank. Total headcount is now 13,854.

**Key Financial Metrics:** The financial results for the quarter showed Profit After Tax (PAT) at ₹277 Cr (up 1% YoY), and for the nine-month period, PAT was ₹829.5 Cr (up 5% YoY). Net Interest Margin (NIM) was 16.04%, Return on Assets (RoA) 7.00%, and Return on Equity (RoE) 15.80%. Capital Adequacy remains strong at 51.63%.

**Management Outlook:** Management anticipates robust portfolio growth through continued branch expansion and optimized ticket sizes, aiming for improved digital collections and a consistent loan processing Turnaround Time (TAT) of 8-9 days to serve the underserved market.