Five-Star Business Finance profit up 7% in Q2FY26

Five-Star Business Finance, a non-banking financial company, posted a net profit of ₹286 crore for the September quarter (Q2FY26), rising from ₹268 crore in the same quarter last year. The quarter saw total income reach ₹807 crore, representing 14% year-on-year growth.

Assets Under Management (AUM) grew to ₹12,847 crore by September 2025, marking an 18% YoY increase and 3% quarterly expansion. Disbursements declined 4% YoY to ₹1,196 crore, attributed to enhanced customer onboarding controls implemented during the quarter.

Lakshmipathy Deenadayalan, Chairman & Managing Director, described the quarter’s results as stable across key performance indicators. “The corrective measures taken in Q1FY26 have stabilized performance this quarter. We anticipate emerging growth signals in Q3 followed by stronger momentum in Q4,” he stated.

Regarding asset quality, Deenadayalan noted: “While we observed marginal quarterly variations in credit costs and asset quality metrics, our position remains comparatively stronger than peers in the small-ticket secured/unsecured lending space.”

Gross Stage 3 Assets stood at 2.64% for Q2FY26 (up 1.17% YoY), with Net Stage 3 Assets at 1.46% (up 0.75%). The company maintained stable collection performance from existing customers compared to the preceding quarter.

Published on October 29, 2025