Five-Star Business Finance Limited (FIVESTAR) Q1 Results FY27 Preview: Date, Time, Expectations & Key Things To Watch

CompoundingAI Research Updated July 20, 2026 3 min read

Five-Star Business Finance navigates a competitive MSME lending landscape as it balances the need for loan book expansion against a challenging credit quality environment. Investors will be focused on whether the firm can stabilise its asset quality metrics and reset its AUM growth trajectory following a period of elevated credit costs.

Quick Details

Results date	July 25, 2026
Quarter	Q1 FY 2026-2027
Previous quarter revenue	Rs. 816.95 Cr
Previous quarter PAT	Rs. 269.27 Cr
Market cap	Rs. 16284.05 Cr
CMP	Rs. 551.65

Five-Star Business Finance Limited Q1 Results Date and Time

The board of directors is scheduled to meet on July 25, 2026, to consider the audited financial results and recommend dividend for FY2026.

What to expect from Five-Star Business Finance Limited's Q1 FY27 results

The company faces a period of margin sensitivity as the RBI maintains a repo rate of 5.25% and a hawkish monetary stance, likely keeping borrowing costs elevated near Q4 FY26 levels of Rs. 181.39 Cr. While the macro environment for MSME credit remains robust with 17.5% YoY growth in industrial credit as of May 2026, Five-Star must demonstrate a recovery from its FY26 AUM growth of 11.1%, which significantly trailed its 25% target. Asset quality remains the primary watch-item, as Gross Stage 3 assets rose to 3.37% in Q4 FY26 from 1.79% in the prior year, and credit costs of ~1.43% of average assets exceeded the company's own guidance band of 1.25-1.35%. Management commentary will likely focus on whether the deceleration in sequential GS3 growth from 54 bps in Q3 to 19 bps in Q4 marks a sustained inflection point for the portfolio.

Key Things To Watch

Asset quality and credit costs: Monitoring the trajectory of stressed assets and provisioning requirements.

Gross Stage 3 assets stood at 3.37% as of March 2026, up from 1.79% in March 2025.
Credit costs for FY26 reached ~1.43% of average assets, surpassing the guided range of 1.25-1.35%.
Sequential increase in GS3 slowed to 19 bps in Q4 FY26, down from 54 bps in Q3 FY26.

AUM growth and guidance: Tracking the firm's ability to scale the loan book against underwriting discipline.

FY26 AUM growth was 11.1%, trailing the company's 25% target.
Management to provide updated AUM growth guidance for FY27.

Operating efficiency: Evaluating the impact of branch expansion on cost structures.

Cost-to-income ratio rose to 41.69% in FY26, compared to 34.92% in FY25.

Frequently Asked Questions

What was the trend in Five-Star's asset quality during the previous fiscal year?

Five-Star's Gross Stage 3 assets increased to 3.37% in FY26 from 1.79% in FY25. While the sequential deterioration slowed to 19 bps in the final quarter, credit costs for the year reached ~1.43% of average assets, exceeding the company's guided range.

How did Five-Star's AUM growth compare to its targets in FY26?

The company reported AUM growth of 11.1% for FY26, which was significantly below its stated target of 25%. Management attributed this to a focus on disciplined underwriting during the period.

Are new RBI regulatory frameworks for NBFCs affecting Five-Star?

Five-Star is not directly affected by the recent RBI overhaul of the upper-layer NBFC framework, which sets a Rs. 1 trillion minimum asset threshold. The company's AUM of approximately Rs. 12,985 Cr as of March 2026 remains well below this classification level.