Q4 2026 IndoStar Capital Finance Ltd Earnings Call Transcript
Key Points
- Indostar Capital Finance Ltd (NSE:INDOSTAR) reported a 17% sequential growth in disbursements for Q4 FY26, reflecting improving business momentum.
- The company has successfully diversified its portfolio, reducing MHCV disbursements from 57% in FY24 to 31% in FY26, and increasing passenger vehicle disbursements from 8% to 23%.
- Indostar Capital Finance Ltd (NSE:INDOSTAR) has implemented significant digitization, with 84% digital adoption in vehicle finance and near 100% in Micro LAP, reducing turnaround time by 25%.
- The company has expanded its frontline sales force by 30% in H2 FY26 and plans to add 100 branches over the next three years to support growth.
- Indostar Capital Finance Ltd (NSE:INDOSTAR) has maintained a strong liquidity position and improved its cost of funds, with a 60 basis point decline in incremental borrowing costs in Q4 FY26 compared to Q4 FY25.
- The company's gross Stage 3 assets increased to 4.8%, indicating a rise in non-performing assets.
- Indostar Capital Finance Ltd (NSE:INDOSTAR) reported a net loss of INR424 crore for Q4 FY26 due to additional provisioning for security receipts and a management overlay for potential macroeconomic risks.
- The company's older loan book, which still constitutes a significant portion of the portfolio, is experiencing higher slippages.
- Despite improvements, the company's credit cost guidance remains at 2% to 2.5%, which is higher than some peers in the vehicle finance segment.
- The company's profit outlook for FY29, targeting INR450 crore to INR500 crore, suggests a relatively modest ROE compared to peers, assuming no additional stress or macroeconomic shocks.
Ladies and gentlemen, good day, and welcome to IndoStar Capital Finance Limited Q4 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Aryan Sumra. Thank you, and over to you, Mr. Sumra.
Thank you. Good afternoon, everyone. I welcome you all to the Q4 and FY26 earnings conference call for IndoStar Capital Finance Limited.
To discuss the quarter's performance, we have from the management, Mr. Randhir Singh, Managing Director and Executive Vice Chairman; and Mr. Jayesh Jain, Chief Financial Officer. Before we proceed with the call, I would like to mention that some of the statements made in today's call may be forward-looking and may involve risks and uncertainties.
For more details, kindly refer to the investor presentation and other filings that can be found on the company's website. Without further ado, I would like to hand over the call to the management for their opening
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