Five-Star Q1 net profit flat, asset quality softens within band
Net profit at ₹271.4 crore versus ₹266.3 crore last year; gross Stage 3 inches up to 3.46% from 3.37%. Board approves routine appointments.
— 3 earlier stories on Five-Star Business Finance Ltd. →What's new
- Q1 net profit ₹271.4 cr (₹266.3 cr YoY); total income ₹838.7 cr.
- Gross Stage 3 rises to 3.46% (March: 3.37%), net Stage 3 at 2.10%.
- Board fixes AGM date, appoints independent director, extends compliance officer, proposes joint auditor.
Why this matters
The results are routine with no surprise. The marginal uptick in Stage 3 is mild and remains within the guided credit cost band of 1.7-1.75%, so the filing is unlikely to spark analyst revisions or change the investment thesis.
What we're watching
- Whether Stage 3 continues to edge up in coming quarters.
- Credit cost trajectory relative to the 1.7-1.75% guidance band.
- Loan growth momentum in a stable rate environment.
The full read
Five-Star Business Finance's June quarter was quietly in line. Net profit of ₹271.4 crore was marginally higher year-on-year (₹266.3 crore), while total income came in at ₹838.7 crore. Asset quality softened a notch: gross Stage 3 loans climbed to 3.46% from 3.37% in March, and net Stage 3 to 2.10% from 2.00%. But both remain inside the management's guided credit cost band of 1.7-1.75%, so no alarm. The board business, including the AGM date, new independent director appointment, compliance officer extension, and proposed joint auditor, was standard. This is a routine periodic disclosure that changes nothing for the thesis.
Questions answered
- How did Five-Star's Q1 net profit compare?
- Net profit was ₹271.4 crore, compared to ₹266.3 crore a year earlier, reflecting stable earnings.
- What happened to asset quality?
- Gross Stage 3 rose to 3.46% from 3.37% in March, and net Stage 3 to 2.10% from 2.00%, both remaining within the guided credit cost band of 1.7-1.75%.
- What board decisions were made?
- The board set the AGM for August 31, appointed Sreeram Ranganathan Iyer as additional independent director for five years, extended Chief Compliance Officer R. Vijayaraghavan's tenure by three years, and proposed Suri & Co as joint statutory auditors for a three-year term.
- Are these results a surprise?
- No. The results are routine with no material deviation from market expectations, so they are unlikely to alter the investment thesis.
Five-Star Business Finance Ltd.
Latest quarter · Jun 2026
Leverage & growth
Story so far
All notes on FIVESTAR →- 25 Jul 2026 · 7:04 PM IST Five-Star Q1 net profit flat, asset quality softens within band
- 1d ago Five-Star lifts credit cost view, trims ROA target despite record lending
- 3d ago Five-Star's record ₹1,496 cr disbursements power Q1 growth
- 3d ago Five-Star Business Finance Q1 profit up but asset quality slips