Five-Star Business Finance Limited — Q1FY27 earnings call summary

Filed 27 July 2026 · Company audio recording

Credit cost guidance for FY27 maintained at 1.7-1.9%, trending lower with expected decline in slippages.
Incremental borrowing cost expected to compress by 10-15 bps, stabilizing around 8.5%, assuming no repo hikes.
Operating expenses to remain elevated at ~6% of assets in FY27; operating leverage expected from FY28, targeting 5.25-5.5%.
Full-year growth guidance expected to be comfortably met with 4% sequential AUM growth in Q1.
Gross NPA expected to reduce to ~3% by year-end, with slippages and NPAs trending downwards.
Cost of funds declined from 8.95% to 8.80% QoQ, supporting stable spreads and flat NIM.
Potential headwinds from rising energy costs and regulatory decisions on price hikes.
Repo rate increases could adversely impact borrowing costs and spreads.