{"id":178345,"date":"2026-01-29T07:03:24","date_gmt":"2026-01-29T12:03:24","guid":{"rendered":"https:\/\/alphastreet.com\/india\/?p=178345"},"modified":"2026-01-29T07:03:24","modified_gmt":"2026-01-29T12:03:24","slug":"five-star-business-finance-reports-16-portfolio-growth-in-q3-fy2026-amid-regional-expansion","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/five-star-business-finance-reports-16-portfolio-growth-in-q3-fy2026-amid-regional-expansion\/","title":{"rendered":"Five-Star Business Finance Reports 16% Portfolio Growth in Q3 FY2026 Amid Regional Expansion"},"content":{"rendered":"\n<p>Five-Star Business Finance Limited (NSE: FIVESTAR, BSE: 543663), a leading Indian specialized lender, reported a 16% year-on-year increase in its loan portfolio for the quarter ended December 31, 2025, reaching \u20b9129,641 million.<\/p>\n\n\n\n<p>The company, which focuses on providing secured financial solutions to small business owners and self-employed individuals, continues to navigate an underserved market characterized by a massive credit gap.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Company Overview &amp; Market Perspective<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Five-Star Business Finance serves a niche segment of customers with informal incomes who are largely excluded from the formal lending ecosystem. The company addresses a total addressable market (TAM) estimated at \u20b922 trillion, targeting the significant MSME credit gap in India.<\/li>\n\n\n\n<li>The company reported a robust net worth of \u20b970.8 billion as of December 31, 2025.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"564\" src=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2026\/01\/FiveStar-1024x564.png\" alt=\"\" class=\"wp-image-178349\" srcset=\"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2026\/01\/FiveStar-1024x564.png 1024w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2026\/01\/FiveStar-300x165.png 300w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2026\/01\/FiveStar-768x423.png 768w, https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2026\/01\/FiveStar.png 1165w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Portfolio &amp; Geographic Presence<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The company&#8217;s portfolio is 100% secured, with 95% of loans backed by self-occupied residential property (SORP).<\/li>\n\n\n\n<li>As of Q3 FY2026, Five-Star operates 835 branches across 11 states and Union Territories. Its presence is most concentrated in Southern India, with Andhra Pradesh (36%), Tamil Nadu (29%), and Telangana (19%) making up the core of its Assets Under Management (AUM).<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Target Customers &amp; Latest Metrics<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Five-Star targets households with gross monthly incomes between \u20b925,000 and \u20b940,000, typically involved in everyday &#8220;cash and carry&#8221; services. The average ticket size for loans disbursed during the quarter was \u20b90.39 million.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Asset Quality &amp; NPA Metrics<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>While the portfolio grew, asset quality metrics saw a year-on-year shift. Gross NPA (Stage 3 assets) stood at 3.18%, up from 1.62% in December 2024.<\/li>\n\n\n\n<li>Net Stage 3 assets were reported at 1.94%. The 30+ Days Past Due (DPD) metric reached 12.81%, compared to 9.16% a year prior. The provision coverage on Stage 3 assets was maintained at 39.84%.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Liability, Cash Flow, &amp; Liquidity<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The company maintains a well-diversified liability profile with 45 lender relationships. In Q3 FY2026, it signed a $100 million facility with the Asian Development Bank (ADB). The incremental cost of borrowings for the quarter stood at 8.19%.<\/li>\n\n\n\n<li>Five-Star maintains a strong liquidity position with a total buffer of \u20b937,164 million, including unavailed sanction lines. Its Capital Adequacy Ratio remains robust at 51.63%.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Management Commentary &amp; Strategy<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Under the leadership of Chairman and Managing Director Lakshmipathy Deenadayalan, the company continues its mission of Reaching the Unreached.<\/li>\n\n\n\n<li>Management has emphasized a &#8220;borrower-led&#8221; growth strategy, prioritizing an increase in the number of active loans, which reached approximately 0.49 million over simply increasing ticket sizes.<\/li>\n\n\n\n<li>The company is also utilizing a &#8220;Cluster Strategy&#8221; to de-risk operations by splitting branches once they cross specific account thresholds.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Overall Assessment<\/strong> <\/h2>\n\n\n\n<p>Five-Star Business Finance demonstrates consistent growth and high profitability, evidenced by a Return on Assets of 7.00% and a net interest margin of 16.04%. While the rise in Gross NPA and 30+ DPD metrics suggests a need for continued focus on collections, the company\u2019s 100% secured lending model and significant capital buffers provide a strong cushion against credit risks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Five-Star Business Finance Limited (NSE: FIVESTAR, BSE: 543663), a leading Indian specialized lender, reported a 16% year-on-year increase in its loan portfolio for the quarter ended December 31, 2025, reaching \u20b9129,641 million. The company, which focuses on providing secured financial solutions to small business owners and self-employed individuals, continues to navigate an underserved market characterized [&hellip;]<\/p>\n","protected":false},"author":2378,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5,1941,392,1],"tags":[151,15006,9769,14614],"class_list":["post-178345","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","category-stock-analysis","category-earnings","category-finance-stocks","tag-banking","tag-five-star","tag-lending","tag-small-finance"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":126007,"url":"https:\/\/alphastreet.com\/india\/ipo-alert-five-star-business-finance-prepares-for-a-public-listing\/","url_meta":{"origin":178345,"position":0},"title":"IPO Alert: Five-Star Business Finance prepares for a public listing","author":"Nishad","date":"November 24, 2021","format":false,"excerpt":"Non-banking finance companies (NBFC) have played an important role in the Indian financial system by offering low-cost banking services and providing savings and investments services to small-scale and retail customers. As of January 2021, there were 9,425 non-banking finance companies registered with the RBI, categorized as asset finance companies, loan\u2026","rel":"","context":"In &quot;Finance&quot;","block_context":{"text":"Finance","link":"https:\/\/alphastreet.com\/india\/category\/finance-stocks\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/07\/iStock-649278704.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/07\/iStock-649278704.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/07\/iStock-649278704.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/07\/iStock-649278704.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/07\/iStock-649278704.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":178280,"url":"https:\/\/alphastreet.com\/india\/five-star-business-finance-posts-steady-q3-profit-as-asset-quality-pressures-temper-margins\/","url_meta":{"origin":178345,"position":1},"title":"Five-Star Business Finance posts steady Q3 profit as asset quality pressures temper margins","author":"Staff Correspondent","date":"January 29, 2026","format":false,"excerpt":"Five-Star Business Finance Ltd (NSE:FIVESTAR), a non-bank lender focused on secured loans to small business owners and self-employed borrowers, reported largely stable earnings for the December quarter, as portfolio growth and higher income offset rising credit costs and softer profitability ratios. The Chennai-based lender posted a profit after tax of\u2026","rel":"","context":"In &quot;LATEST&quot;","block_context":{"text":"LATEST","link":"https:\/\/alphastreet.com\/india\/category\/latest\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":145514,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-five-star-business-finance-limited-for-q4-fy23\/","url_meta":{"origin":178345,"position":2},"title":"Earnings Summary Of Five Star Business Finance Limited For Q4 FY23","author":"Hardik Bhandare","date":"May 9, 2023","format":false,"excerpt":"Five Star Business Finance Limited is a non-banking finance company (NBFC) that provides financial services to micro, small, and medium-sized enterprises (MSMEs) in India. The company offers a range of financial products and services, including business loans, machinery loans, working capital finance, and term loans. Five Star Business Finance has\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-3-3.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-3-3.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-3-3.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-3-3.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-3-3.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-3-3.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":165645,"url":"https:\/\/alphastreet.com\/india\/five-star-business-finance-ltd-q2fy25-35-rise-in-profits\/","url_meta":{"origin":178345,"position":3},"title":"Five-Star Business Finance Ltd Q2FY25; 35% rise in Profits","author":"Divyansh_Kasana","date":"November 14, 2024","format":false,"excerpt":"Incorporated in 1984, Five Star Business Finance Limited is an NBFC-ND-SI providing secured business loans to micro-entrepreneurs and self-employed individuals across South India. Financial Results: Five-Star Business Finance Ltd reported Revenues for Q2FY25 of \u20b9702.00 Crores up from \u20b9519.00 Crore year on year, a rise of 35.26%. Total Expenses for\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/11\/FIVE.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/11\/FIVE.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/11\/FIVE.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/11\/FIVE.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/11\/FIVE.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/11\/FIVE.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":167699,"url":"https:\/\/alphastreet.com\/india\/five-star-business-finance-ltd-q3fy25-24-rise-in-profits\/","url_meta":{"origin":178345,"position":4},"title":"Five-Star Business Finance Ltd Q3FY25; 24% rise in Profits","author":"Divyansh_Kasana","date":"April 2, 2025","format":false,"excerpt":"Incorporated in 1984, Five Star Business Finance Limited is an NBFC-ND-SI providing secured business loans to micro-entrepreneurs and self-employed individuals across South India. Financial Results: Five-Star Business Finance Ltd reported Revenues for Q3FY25 of \u20b92,102.00 Crores up from \u20b91,597.00 Crore year on year, a rise of 31.62%. Total Expenses for\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/04\/H-1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/04\/H-1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/04\/H-1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/04\/H-1.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/04\/H-1.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/04\/H-1.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":157622,"url":"https:\/\/alphastreet.com\/india\/five-star-business-finance-ltd-q2fy24-38-rise-in-profits\/","url_meta":{"origin":178345,"position":5},"title":"Five-Star Business Finance Ltd Q2FY24; 38% rise in Profits","author":"Divyansh_Kasana","date":"January 9, 2024","format":false,"excerpt":"Incorporated in 1984, Five Star Business Finance Limited is an NBFC-ND-SI providing secured business loans to micro-entrepreneurs and self-employed individuals across South India. Financial Results: Five-Star Business Finance Ltd reported Revenues for Q2FY24 of \u20b9519.00 Crores up from \u20b9361.00 Crore year on year, a rise of 43.77%. Total Expenses for\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/01\/image-18.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/01\/image-18.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/01\/image-18.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/01\/image-18.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/01\/image-18.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/01\/image-18.png?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/178345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/2378"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=178345"}],"version-history":[{"count":3,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/178345\/revisions"}],"predecessor-version":[{"id":178351,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/178345\/revisions\/178351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=178345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=178345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=178345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}