Five-Star Business Finance Ltd

Filing overview

• BRSR Core Report for FY2025-26 submitted by Five-Star Business Finance Limited.
• Standalone basis; SGS India provided Reasonable Assurance on core indicators.
• Period covered: 1 April 2025 to 31 March 2026.

Key ESG metrics

• GHG: Scope 1 3.64 tCO2e; Scope 2 2,289.93 tCO2e; intensity 1e-7.
• Energy: Non-renewable electricity 11,610.92 GJ; fuel 48.89 GJ.
• Water: total consumption 179,040.56 KL; discharged 0.
• Waste: total 1.65 t; E-waste 1.65 t; no other waste.

Governance and CSR

• CSR governance: CSR Committee oversees initiatives; Board reviews CSR progress.
• Policies align with nine NGRBC principles; SGS confirms core indicators.

Financial Performance

• Disbursements in Q1 FY27: INR1,496 crores, up 23% QoQ and 16% YoY.
• AUM at INR13,722 crores, up 4% QoQ.
• Collections: unique customer collection efficiency 97.9%; x-bucket 99.2%.
• Slippages flat at 0.70%; credit cost 1.85% in Q1 FY27.
• Cost of funds on the book declined to 8.80% in Q1 from 8.95% in Q4.
• ROA about 8.11%; ROE close to 14.5% for the quarter.
• PAT INR271 crores; net worth INR7,653 crores as of June 30.
• Branch network rose to 856 branches; 12 new in quarter, mainly Maharashtra.

Asset Quality & Collections

• 1+ collections down 60 bps; 30+ down 30 bps.
• Recoveries in quarter were INR 35 crores, up from prior quarter's 26–27 crores.
• Provision coverage on Stage 3 remained over 40%; overall AUM coverage about 1.8%.
• Write-offs in Q1 were INR60 crores; full-year guidance INR225–250 crores.
• Gross NPAs guided to sub 3%; slippages expected to trend down.
• Credit cost guidance for FY27: 1.7%–1.9%; trend toward 1.7%.

Balance Sheet & Liquidity

• Debt on balance sheet declined; lines available to lever up when needed.
• Incremental cost of borrowing around 8.5%; no repo-rate increases assumed.
• June disbursement pace was about INR670 crores; monthly range 600–670 crores implied.
• Guided 20% loan growth for the year; quarterly run-rate 6,500–6,800 crores.
• Ticket mix target: 25% INR3 lakh; 50% INR5 lakh; 25% INR10 lakh.

Guidance & Outlook

• FY27 loan growth guidance maintained at 20%.
• FY28 credit cost expected around 1.6%–1.7%.
• Leverage up over time; 6–8 quarters to 2x debt-to-equity.
• New product diversification planned; 2–3 products; housing product launched earlier.

Q&A Highlights

• Opex growth expected around 20%–21% YoY; operating leverage limited this year.
• Asset yields around 22.5%; further 10–15 bps yield compression possible.
• Top-ups allowed on existing loans; no forced full prepayment for top-ups.
• Disbursement momentum to sustain; 20% YoY growth target affirmed.
• Microfinance overlap declined to 16–17%; gold loans rising modestly.
• Quarterly write-offs around INR60 crores; overall ECL coverage 1.75%–1.8%.

Independent Director Cessation

• Cessation of Anand Raghavan as Independent Director effective close of business hours July 27, 2026 after completing term.

Meeting Details

• Audio recording of the Q1 FY27 earnings call held on July 27, 2026 is available on company site.
• Event type: earnings conference call, group session, organized by Five-Star Business Finance Ltd.

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Purpose: announce availability of the earnings call recording.

Additional Notes

• Recording is available on the company site; no transcript/presentation details specified.

Dividend and TDS update

• Board recommended final dividend of Rs 2.00 per equity share for FY2025-26.
• AGM on Aug 31, 2026; record date July 31, 2026; payout by Sep 29, 2026 if approved.
• Dividend income will be taxable; TDS rules depend on PAN status and shareholder category.
• Resident individuals with PAN: 10% TDS unless total annual dividend ≤ Rs 10,000.
• Non-PAN holders: 20% TDS.
• Non-residents may face 20% or DTAA rates with documentation.
• Cut-off date for submitting tax forms: Aug 10, 2026, 11:59 PM IST.
• Submission via RIS KFinTech portal; incomplete documents may trigger higher withheld tax.
• TDS certificate will be emailed post dividend payment.
• Shareholders in demat or physical form should update PAN, email, and bank details with RTA/depository.

AGM details

• 42nd AGM scheduled for 31 August 2026 at 10:00 AM via Video Conference/OAVM.

Nil deviation under Reg 32

• Quarter ended June 30, 2026: no deviation or variation in fund utilization.
• Total issue size: INR 31,57,00,000.
• Upfront: INR 7,89,25,000; balance: INR 17,90,25,000; 1,00,000 option lapsed.