Indostar Capital Finance Ltd

Meeting Details

• Date of call: Thursday, July 30, 2026.
• Event type: conference call (group).
• Mode: audio recording.
• Event: conference call on unaudited financial results for quarter ended June 30, 2026.
• Key company participants: Company Secretary & Compliance Officer.
• Purpose: discuss unaudited financial results.
• Recording availability: available on company website.

Meeting Details

• Board meeting scheduled for July 29, 2026; time not disclosed.

Key Agenda Items

• Approve unaudited standalone and consolidated financial results for quarter ended June 30, 2026.
• Approve issuance of non-convertible debentures up to INR 6,000 crore on private placement.
• Such issuance to be within a year, in one or more tranches, subject to shareholder approval.
• Fix date and time for the 17th AGM and approve the AGM notice, including debt securities fundraising.

Other Notes

• Trading window for designated persons and their relatives remains closed until 48 hours after the June 30, 2026 results declaration.

Dematerialisation processing and listing status

• Dematerialisation requests processed and confirmed to depositories.
• Dematerialised securities listed on the exchanges where earlier securities are listed.
• Physical certificates for dematerialisation mutilated and cancelled; depository name substituted as registered owner within timelines.

Business overview

• Retail-led NBFC focused on vehicle finance and micro LAP.
• Exited affordable housing finance to simplify the portfolio and focus on core businesses.

Operational highlights

• Branches increased to 454 across 24 states and union territories.
• Micro LAP expanded to 108 branches across four states.
• AUM rose to ₹8,056 crore, with Micro LAP AUM reaching ₹175 crore.
• Prime customers increased to 79% of the portfolio, improving credit quality.

Financial performance

• FY26 standalone revenue from operations was ₹1,392.9 crore, broadly flat year-on-year.
• FY26 standalone NII rose 16.4% to ₹771.7 crore.
• FY26 standalone PPOP increased 40.2% to ₹266.5 crore.
• FY26 standalone PAT was ₹130.4 crore, versus ₹52.6 crore in FY25.
• Q4 FY26 credit costs were ₹517.3 crore, driving a quarterly loss before tax.

Asset quality

• Gross Stage 3 improved to 4.8% from 4.5% in FY25.
• Net Stage 3 improved to 2.1% from 2.4% in FY25.
• Stage 3 PCR increased to 57.4% from 46.7% in FY25.
• Early delinquency fell to 2.24% and non-starters to 1.05%.

Liquidity and capital

• Capital adequacy ratio improved to 36.1% from 28.5% in FY25.
• Cost of borrowings declined to 10.2% from 10.9% in FY25.
• Available liquidity was ₹599 crore, plus ₹165 crore undrawn limits and ₹434 crore treasury assets.
• Credit ratings were AA- stable long term and A1+ short term.

Strategy and outlook

• Management is scaling used vehicle finance and diversifying into passenger, farm, and construction equipment.
• Micro LAP is being expanded gradually through co-housed branches.
• Project LEAP and digital tools are being used to improve efficiency, underwriting, and collections.

Risks and controls

• Management highlighted credit, liquidity, operational, fraud, cybersecurity, and regulatory risks.
• Mitigation includes automated underwriting, early-warning systems, ALM monitoring, and proactive collections.
• LCR was maintained at 1.61x-1.78x of RBI requirements.

Governance and leadership

• Promoter holding was 70.38%, with Brookfield holding 55.98%.
• Public shareholding was 24.86% and FIIs held 2.59%.
• Leadership includes a seasoned management team across finance, risk, technology, and operations.

Risk and outlook

• Management booked a ₹49 crore overlay for potential West Asia-related macroeconomic risks.
• Scorecard coverage is expected to expand to nearly 70% by March 2027.
• SR portfolio net carrying value of about ₹588.63 crore is expected to be realized over time.