Indostar Capital Finance Ltd (BOM:541336)

Q1 2026 IndoStar Capital Finance Ltd Earnings Call Transcript

Aug 14, 2025 / 06:30 AM GMT

Release Date Price: ₹265.95 (-2.72%)

Transcript

Key Points

Positve

Indostar Capital Finance Ltd (NSE:INDOSTAR) successfully completed the divestiture of its 100% subsidiary, Neva Housing Finance Private Limited, resulting in a one-time gain of 1,176 crore.
The company has strategically transitioned to focus on two core segments: vehicle finance and micro loans against property, which is expected to enhance execution and market penetration.
The company reported a significant reduction in the incremental cost of funds by 60 basis points compared to the previous year, and replaced high-cost loans with fresh borrowings at lower rates, resulting in annual interest savings.
Indostar Capital Finance Ltd (NSE:INDOSTAR) has launched a cost optimization initiative aimed at reducing operating costs by 8-10% over the next 12 months.
The company has strengthened its borrowing profile through active treasury management and strong lender relationships, maintaining a strong capital adequacy ratio of 32.7%.

Negative

Disbursements for the quarter decreased to 858 crore from 1,081 crore in the previous quarter and 1,416 crore in the same period last year, indicating a short-term moderation in volumes.
The company experienced a technical write-off of 161 crore due to loans crossing the 210 days past due threshold, reflecting challenges in asset quality.
Operating expenses increased to 139 crore compared to 112 crore in the same quarter last year, indicating rising costs.
The EMI plus overdue collection rate decreased to 94% from 97% in the previous quarter, suggesting potential collection challenges.
The company made an incremental provision of 255 crore on select security receipts where near-term recoveries appear uncertain, indicating potential stress in certain assets.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

INAC.NS - IndoStar Capital Finance Ltd
Q1 2026 IndoStar Capital Finance Ltd Earnings Call
Aug 14, 2025 / 06:30AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to IndoStar Capital Finance Limited Q1 F 526 earnings conference call hosted by MSG in India Private Limited. As a reminder, all participant lines will win the listen more, and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during this conference call, please signal an operator by pressing, then 0 on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aan Sumra from MUFG in India Private Limited.

Thank you and over to you, sir.

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