Q3 2026 Five-Star Business Finance Ltd Earnings Call Transcript
Key Points
- Five-Star Business Finance Ltd (BOM:543663) has seen a marginal improvement in portfolio quality, with the current proportion of the portfolio increasing from 81.67% in September to 81.77% in December.
- The company reported stable collection efficiency, with unique customer collection efficiency at 95.1% and overall collection efficiency at 96.6%.
- The cost of incremental debt has decreased slightly to 8.19%, which is lower than the previous quarter, indicating better financial management.
- Five-Star Business Finance Ltd (BOM:543663) has maintained a robust liquidity position with INR 2,276 crores on the balance sheet.
- The company has signed a loan agreement with the Asian Development Bank for a $100 million sanction limit, enhancing its financial flexibility.
- Slippages in Stage 3 or NPA remain slightly elevated, indicating persistent stress among some borrowers.
- Credit costs have increased marginally from 1.34% in Q2 to 1.44% in Q3, reflecting ongoing challenges in managing loan quality.
- Disbursements during the quarter were 18% lower compared to the previous quarter, indicating a slowdown in growth.
- The company's ROA has decreased from 8% to 7%, and ROE has dropped to 15.8%, showing a decline in profitability.
- The company is facing a behavioral crisis among borrowers, which is prolonging the recovery process and impacting overall performance.
Ladies and gentlemen, good day and welcome to 5 Star Business Finance Q3 FY26 earnings conference call hosted by Ambit Capital Private Limited. As a reminder, all participants line will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation.
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 has been recorded. I now hand over the conference to Mr. Raakar.
Thank you and Over to you, sir.
Thank you and good morning everyone. On behalf of Ambit Capital, I would like to welcome you all to the 3rd quarter FY26 earnings call for Tisha Business Finance Limited. Joining us from the management today, we have Mr. Lakshmibai Dean De Allen, Chairman and managing director, and Mr. Shikan Gopal Krishnan, joint managing director and CFO. I would like to thank the management for the opportunity, to host this earnings call. We can now begin with the opening
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