Five Star Business Finance

FIVESTAR

NSE

BSE

SectorFinancial Services

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Company insights, generated from the most recent coverage.

Management targets 20% AUM growth for FY27 with ₹6,500–7,000 Cr disbursement guidance, backed by declining cost of funds (8.95% in Q4 FY26).
Stock up 4.47% to ₹523.40 on strong volume (8.96 lakh shares) as market re-rates improved fundamentals and pre-AGM dividend interest.
RSI at 77.29 signals overbought conditions; short-term consolidation likely after sharp rally despite bullish Supertrend and MACD.

The Quarter story

The two most recent quarterly results, compared side-by-side.

Five-Star Business Finance expands its loan book and cuts funding costs, but rising NPAs and operating expenses weigh on efficiency.

Loan portfolio grew from ₹124,578 in Q1 FY26 to ₹137,218 in Q1 FY27, showing steady credit expansion.

Gross NPA rose from 2.46% in Q1 FY26 to 3.46% in Q1 FY27, indicating deteriorating asset quality.

Borrowing cost fell from 9.54% in Q1 FY26 to 8.33% in Q1 FY27, improving funding efficiency.

Operating cost to income ratio climbed from 33.45% in Q1 FY26 to 36.62% in Q1 FY27, pressuring operational efficiency.

Digital collections rose from 81% in Q1 FY26 to 86% in Q1 FY27, streamlining cash recovery.

Credit cost to income ratio increased from 7.92% in Q1 FY26 to 9.24% in Q1 FY27, raising provisioning needs.

Net interest income increased from ₹6,039 in Q1 FY26 to ₹6,672 in Q1 FY27, driving core earnings.

Bank balances dropped from ₹4,439 in Q1 FY26 to ₹935 in Q1 FY27, tightening short-term liquidity.

Debt to equity ratio improved from 1.20x in Q1 FY26 to 1.03x in Q1 FY27, strengthening the capital base.

Return on equity declined from 16.57% in Q1 FY26 to 14.46% in Q1 FY27, moderating capital efficiency.

About the company

Five-Star Business Finance Limited is a non-deposit-taking Non-Banking Finance Company (NBFC) incorporated in Chennai, Tamil Nadu. The company provides secured business loans to micro-entrepreneurs and self-employed individuals, primarily for business purposes, house renovation/extension, and other mortgage purposes. Loans range from approximately Rs. 1 lakh to Rs. 10 lakhs with tenures up to seven years. The company operates through a network of 373 branches as of March 31, 2023, with a strong presence in South India, particularly in Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka. Five-Star Business Finance sources loans in-house through branch-led marketing, repeat customers, and walk-ins. The company completed its Initial Public Offer in November 2022, listing on the National Stock Exchange and Bombay Stock Exchange.

In the news

IFCI, Five-Star Business Finance Recommended by HDFC Securities

Motilal Oswal sets ₹600 target for Five Star Business Finance

Motilal Oswal sets ₹590 target for Five Star Business Finance

Five Star Business Finance

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About the company

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