Five-Star Business Finance Ltd(FIVESTAR)

NSE: FIVESTARBSE: 543663

₹ 449.7-4.63%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 13,275 crNext results: 26 Oct 2026Website: www.fivestargroup.inUpdated: 24 Oct 2026

About

Five-Star Business Finance Ltd is a Middle Layer, non-deposit taking NBFC, incorporated in 1984, that gives secured loans to small business entrepreneurs and self-employed individuals. All of its loans are backed by the borrower's property, usually a self-occupied home. As of March 2026 its AUM stood at INR 13,225 Cr, with 844 branches and 14,159 employees across 10 states and 1 UT, and it reported FY26 revenue of 3218.12 (Rs Cr). As of Q1 FY27, AUM was ₹137,218 Mn across 856 branches.^[1][2][3]

Loan book and AUM

AUM reached ₹137,218 Mn in Q1 FY27, up 4% QoQ and 10% YoY.^[3]
Q1 FY27 disbursements were ₹14,964 Mn, the highest ever for a quarter, up 23% QoQ and 16% YoY.^[3]
FY26 disbursements were ₹4,675 Cr, and the portfolio grew 11% to ₹13,225 Cr.^[4]
AUM was INR 13,225 Cr at March 2026, compared with 11,877 crore at March 2025.^[1][5]
Active loan accounts rose to 496,435 in FY26 from 460,756 in FY25.^[1]
Average ticket size rose from ₹3.5L in FY25 to ₹4.2L in FY26. The ₹3 - 10L segment grew to 70% of AUM, from 66% as of March 2025.^[4]

Products and underwriting

The core product is a secured micro loan against property for self-employed and informal-income borrowers. Loans range from INR 1 lakh to INR 10 lakhs, with an average ticket of about INR 3 - 5 lakhs (FY26).^[3][1]
Underwriting in FY26 used a loan-to-value ratio of about 50% at origination and a debt burden ratio of 40-50%.^[1]
A housing loan product was launched in October 2025 across 175 - 200 branches in 6 states. Housing loans have LTV capped at 60%, a debt burden ratio of up to 50% and repayment periods of up to 20 years (FY26 annual report).^[6][1]
A third product is expected to be announced within 3 - 6 months of Q1 FY27.^[3]

Branch network and operations

856 branches as of June 2026, after 12 were added in Q1 FY27, mostly in Maharashtra, which now has 50 branches (3% of the portfolio). There were 844 branches at March 2026 and 748 at March 2025.^[3][1][5]
The company had 14,159 employees at March 2026, of whom about 5906 work as field agents.^[1]
Business origination and collections teams were separated from April 1, 2026.^[4]
The company operates in 10 states and 1 union territory, and all of its business is in India (FY26).^[1]

Yield, spread and cost of funds

Portfolio yield was 22.46% in Q1 FY27. NIM was 19.97%, down 2 bps YoY.^[3]
Spread was 13.66% in Q1 FY27, up 3 bps QoQ.^[3]
Cost of funds fell to 9.21% in FY26 from 9.64% in FY25.^[1]

Asset quality and collections

In Q1 FY27, gross Stage 3 assets were 3.46% (+28 bps YoY) and net Stage 3 assets were 2.10% (+64 bps YoY).^[3]
30+ DPD was 12.38% in Q1 FY27, compared with 12.69% in Q4 FY26.^[3]
Credit cost was 1.85% of average AUM in Q1 FY27, compared with 1.88% in Q4 FY26.^[3]
Non-cash collections were 86% in Q1 FY27, up from 84% in Q4 FY26.^[3]

Customers

Nearly 25% of customers are new to credit, and for over 75% Five Star is their first formal lender (FY26).^[1]
Crisil estimates the MSME segment that resembles its borrowers at INR 22 trillion (FY26 annual report).^[1]

Capital, funding and ratings

CRAR was 51.89% as of FY26.^[3]
It has a $100 Mn ECB facility from the Asian Development Bank. $50 Mn was drawn in Q4 FY26 at 8.53%.^[4]
Lenders added in FY26 included the Asian Development Bank and Kookmin Bank.^[1]
ICRA reaffirmed its rating at AA- (Stable) in FY26. CARE and India Ratings rate it AA- with a positive outlook.^[1]

Guidance and recent developments

FY27 guidance is 20% AUM growth and disbursements of ₹6,500 - 6,800 Cr.^[3]
About 50 - 60 branches are planned for FY27, down from 60 - 75 earlier.^[3]
FY27 credit cost guidance is 1.7% - 1.9% of average AUM.^[3]
Senior management personnel left during FY26. Management says operations were not affected.^[1]

Market Cap

₹13,275 Cr

High / Low

₹666 / 338

Stock P/E

12.0

Price / Book

1.8

Book Value

₹250

EPS

₹37.2

No. of Shares

29.52 Cr

ROE

16.1%

Debt / Equity

1.11

Sales

₹3,218 Cr

Net Profit

₹1,099 Cr

Promoter holding

18.6%

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