Five-Star Q1 PAT flat at ₹271 Cr, up 2% YoY; NPM slips to 32.4% as credit costs climb
PAT +1.91% YoY · revenue +5.38% · margins compressing
₹828.98 Cr
+5.38% YoY
₹271.41 Cr
+1.91% YoY
32.36%
-1.3pp YoY
₹9.19
Five-Star Business Finance opened FY27 with a muted quarter. Standalone PAT of ₹271.4 Cr grew just 1.9% YoY over Q1 FY26's ₹266.3 Cr and was near-flat sequentially (+0.8% vs Q4 FY26's ₹269.3 Cr), while total income of ₹838.7 Cr rose 5.4% YoY. The figures are unaudited and standalone (the company has no subsidiaries), carrying an unmodified limited-review opinion from Deloitte Haskins & Sells.
Q1 FY-2027 vs prior quarters
The bottom-line stall sits on rising credit costs: impairment on financial instruments jumped ~29% YoY to ₹61.8 Cr, far outpacing the 5.6% growth in interest income (₹807.6 Cr). Net profit margin slipped to 32.36% from 33.66% a year ago (Q4 FY26: 32.6%), a ~130 bps YoY compression. Asset quality softened at the margin — Gross Stage 3 assets rose to 3.46% from 3.37% at March-end and net Stage 3 to 2.10% from 2.00%. Finance costs were broadly flat YoY at ₹171.5 Cr, so the squeeze is a provisioning story, not a funding one.
The stock went into the print at ₹535.2, up 7.2% over the past month of trading.
What the summary numbers don't show
PBT ₹361.95 Cr (+2.0% YoY) — EPS ₹9.19 vs ₹9.04 YoY; effective tax ~25%.
Balance sheet strong — CRAR 51.25%, D/E 1.03x, net worth ₹7,653 Cr, LCR 296%.
Management is guiding for a return to robust growth with AUM expected to increase by approximately 20% in FY27, driven by a renewed focus on disbursements. They anticipate credit costs for FY27 to be between 1.7% to 1.75% of average AUM, improving to a steady-state level of 1.5% to 1.6% thereafter. The company expects
The print sits well below the company's own trajectory. On the Q4 FY26 call management guided for ~20% AUM growth in FY27, steady ROA of 8.25–8.5% and credit costs of 1.7–1.75%; a 5.4% YoY topline and ~2% PAT growth is a slow start against that ambition, and the uptick in Stage 3 assets bears watching against the credit-cost guide. Street quarterly consensus is thin — Trendlyne's 9-analyst pool pegs FY27 profit growth near ~10%, a pace this Q1 already trails. No management press release accompanied the numbers filing. Capital remains ample (CRAR 51.25%, D/E 1.03x, net worth ₹7,653 Cr).
W1
Credit-cost trajectory: impairment +29% YoY and Gross Stage 3 up to 3.46% — verify against management's FY27 guide of 1.7–1.75%.
W2
AUM/disbursement growth: 5.4% YoY revenue is a slow start versus the ~20% FY27 AUM growth guidance.
W3
Net margin: whether the 32.4% NPM stabilizes or compresses further as provisioning stays elevated.
Clean digital PDF, in INR lakhs (÷100 → ₹Cr). Standalone only — no subsidiary (Note 8). No exceptional items either period, so raw YoY = adjusted YoY. PAT ₹271.41 Cr is profit for period pre-OCI; totalIncome=revOps+otherIncome and PBT−tax check exactly. NPM 32.36% matches Reg 52(4) disclosure. Effective tax rate ~25%.
Informational and educational content only. Not investment advice.