Five-Star Business Finance Ltd.record disbursements, PAT ₹299 Cr

Five-Star Business Finance's Q2 FY27 call, held on 26 October 2026, showed a small-ticket secured lender coming back to growth after a year of stress.

Disbursements hit a historical best of ₹2,078 crore, up 39% on the quarter and 74% on the year, and assets under management reached ₹14,640 crore, up 14%. Collection efficiency rose to 98.2%, 30+ days past due fell to 11.5% and gross Stage-3 held at 3.48%. Profit after tax was ₹299 crore, up 10% on the quarter, including a ₹19 crore one-time tax benefit. Return on assets rose to 8.39%. The RBI's rate hike turns funding costs upward, so margins will compress even as prices on new loans rise about 1% from October, a gain that reaches the book only over 24 to 36 months.

Management expects flattish slippages and credit cost for the rest of the year and to cross its FY27 growth guidance comfortably. Of six earlier promises, three were met, two are on track and one was missed: the expected cost-of-funds benefit did not come.