IndoStar Capital Finance Reports Strong Growth in Q1 FY27; Disbursements Up 44% Amid Sector Expansion
IndoStar Capital Finance Limited, a retail focused non-banking finance company (NBFC) registered with the Reserve Bank of India, announced its unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2026. The results highlight robust operational growth across key lending segments and improved funding stability.The Company noted that its total disbursements reached INR 1,235 crore during the quarter, marking a significant 44% increase compared to Q1 FY26. Furthermore, the Asset under Management (AUM) stood at INR 8,244 crore as of June 30, 2026, reflecting a 6% growth over the same period in the previous fiscal year.
Financial and Operational Highlights
IndoStar Capital Finance reported that Net Interest Income climbed to INR 219 crore, realizing a 39% year-on-year rise. This improvement was attributed to better portfolio yields combined with effective reductions in borrowing costs.For profitability metrics, the Pre-provision operating profit (PPOP) registered at INR 93 crore, remaining stable compared to the preceding quarter. Profit after Tax (PAT) for the company stood at INR 11 crore.
The financial health of the firm showed strengthening, with the weighted average cost of funds declining to 9.9% in Q1 FY27 from 10.7% in Q1 FY26, representing an improvement of 80 basis points. The incremental cost of fund was reported at 9.1%.
Risk metrics as of June 30, 2026 indicated Gross Stage 3 assets at 4.84%, while Net Stage 3 assets were 2.48%.
Strategic Expansion and Credit Strengthening Initiatives
IndoStar continued to advance its key strategic priorities across multiple fronts. The company strengthened its credit risk framework through enhanced underwriting, refined customer selection filters, proprietary scorecards, and early warning systems implementation.On the operational front, the Company is continuing its digital transformation journey, which includes E-Application, E-NACH, E-Agreement functionality, and scorecard based credit decisioning. To drive growth, IndoStar successfully scaled its retail loan portfolio, registering 3% quarter-on-quarter (QoQ) growth in Vehicle Finance and a strong 24% QoQ growth in Micro Loans Against Property (M-LAP).
The business also expanded its physical reach by adding 14 branches, bringing the total network to 468 branches across 24 states and union territories. Furthermore, the existing Vehicle Finance branch network was leveraged to scale the M-LAP business, expanding the specialized micro loan network from 108 to 125 branches.
Key Performance Indicators (KPIs) Table
The performance of IndoStar Capital Finance, as reported by ICF Standalone, is summarized in the table below:| Particulars ( ₹ in crore) | Q1 FY27 | Q4 FY26 | Q-o-Q % | Q1 FY26 | Y-o-Y % |
|---|---|---|---|---|---|
| Net Interest Income | 219.5 | 214.7 | 2.2% | 158.0 | 38.9% |
| Operating expenses | 129.4 | 121.5 | 6.5% | 139.3 | -7.1% |
| Pre-provision operating profit | 92.9 | 93.3 | -0.4% | 18.9 | 391.5% |
| Profit/(loss) after tax | 11.5 | (424.0) | 535.4 | ||
| CAR (%) Standalone | 34.8% | 36.1% | 32.9% | ||
| Leverage (D/E) | 1.5x | 1.5x | 1.7x |
IndoStar Capital Finance Limited is a middle layered NBFC, co-promoted by Brookfield and Everstone, specializing in providing used vehicle financing and secured loans to small business owners.
INDOSTAR Stock Price Movement
Shares of IndoStar Capital Finance Limited slipped in post-market trading today, shedding 1.32% as the equity closed for the day. The stock registered a total traded volume of 1,205,846 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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