Five-Star Business Finance Reports Q1FY27 Results; AUM Reaches ₹13,722 Cr as Disbursements Grow 23% Sequentially

Five-Star Business Finance Reports Q1FY27 Results; AUM Reaches ₹13,722 Cr as Disbursements Grow 23% Sequentially​

Five-Star Business Finance Limited has released its unaudited financial results for the quarter ended June 30, 2026. The company reported robust growth in disbursements and maintained solid asset quality metrics, signaling a return to a strong growth path.

The Board of Directors announced the Q1FY27 performance, which demonstrated healthy increases across several key operational areas.

Financial Performance Snapshot (Q1FY27)​

Five-Star Business Finance saw its Assets Under Management (AUM) grow 4% sequentially and 10% year-on-year, reaching ₹13,722 Cr. Disbursements surged sharply to ₹1,496 Cr, up 23% from the previous quarter and 16% compared to Q1FY26. The company also achieved a Profit After Tax (PAT) of ₹271 Cr, marking a 2% increase year-on-year.

The financial data for the quarter is presented below:


*Net Interest Margin computed as a % of Average AUM.

Asset Quality and Collections Metrics​

During the quarter, the company's focus shifted toward disbursements and portfolio growth amid stable collections. The slippage ratio remained steady at 0.70%, similar to Q4FY26. Gross Stage 3 assets marginally increased to 3.46% from 3.37% in Q4FY26.

Key metrics demonstrating collection robustness included:

• Unique customer collection efficiency (excluding NPAs) stood strong at 97.9%, compared to 98.1% in Q4FY26.
• X-bucket collections maintained a high rate of 99.2% (up from 99.3% in Q4FY26). This led the Current bucket AUM proportion to rise from 82.69% in Q4FY26 to 83.30% in Q1FY27.
• Credit cost improved to 1.85% of average AUM for Q1FY27, down from 1.88% in Q4FY26.

Funding and Liquidity Status​

The company continued strengthening its funding profile despite uncertain liquidity conditions. During the quarter, Five-Star Business Finance availed incremental debt amounting to ₹450 Cr at an all inclusive cost of 8.33%. The cost of funds on the book decreased further to 8.80% in Q1FY27, down from 8.95% in Q4FY26.

As of June 30, 2026, total borrowings, including debt securities, stood at ₹7,866 Cr. The company maintained a liquidity position of ₹1,847 Cr.

Operational Expansion and Outlook​

Mr Lakshmipathy Deenadayalan, Chairman & Managing Director, commented on the results, noting that Q1 FY27 represents a positive start to the fiscal year, underpinned by strong disbursement traction.

"We clocked our historical best in disbursements with quarterly disbursements coming in at INR 1,496 Cr, a growth of 23% over the previous quarter and 16% on year-on-year basis," he stated.

The company also reported expanding its branch presence to 856 branches across 11 states or Union Territories. This included opening 12 new branches during the quarter.

For the full year, Five-Star Business Finance remains confident in achieving its AUM growth guidance of 20%. The management aims for strong and sustainable growth through robust credit underwriting, proactive risk management, and a diversified, cost effective funding profile.

FIVESTAR Stock Price Movement​

Five-Star Business Finance Limited shares edged higher on Friday, closing at ₹535.20 after gaining 0.19%. The stock traded within an intraday range of ₹520.50 to ₹538.00, amidst robust activity involving 495,386 shares.