Five-Star Business Finance’s shares slid 7.45% to ₹414.85 on the BSE after the company announced a Q2 net profit of ₹299 crore, up 4.61% YoY from ₹286 crore.
The ₹691 crore net interest income rose 11.5% YoY, while total revenue climbed 8% to ₹875 crore, despite a 2% dip in profit before tax to ₹375 crore.
Assets under management hit ₹14.64 trn, up 14% YoY, and the firm disbursed ₹2.078 trn in loans, a 73% jump from ₹1.196 trn in the prior year.
Collection efficiency improved to 98.2% from 97.9%, and the share of loans overdue 30+ days fell to 11.5% from 12.38%. The slippage ratio eased to 0.68% versus 0.70% earlier, while credit costs slipped to 1.80% of AUM.
Borrowings stood at ₹7.968 trn, with an incremental debt of ₹825 cr taken at 8.43% all‑inclusive. The cost of funds on the total borrowing book eased to 8.78% from 8.80% in Q1.
The company reiterated it expects to exceed its growth guidance for FY27, keeping credit costs flat and banking on higher yields from incremental disbursements to offset a tightening rate cycle.