Five-Star Business Finance543663Earnings call transcript

Q2 FY27 call: record disbursements of Rs. 2,078 crores, AUM Rs. 14,640 crores, PAT Rs. 299 crores

Transcript of the Q2 FY27 earnings call held on October 26, 2026 is out.

By ScoutQuest · Fri 30 Oct 2026, 11:28 AM IST · 3 min read

Disbursements: Rs. 2,078 crores, up 74% year-on-year (highest-ever)
AUM: Rs. 14,640 crores, up 14% year-on-year
PAT: Rs. 299 crores, includes one-time tax benefit of Rs. 19 crores; excluding it ~Rs. 281 crores, up 3% sequentially

What this update is

The document is the transcript of the Q2 FY27 earnings call held on October 26, 2026, where the Chairman and Managing Director, the Joint Managing Director and CFO, and the Chief of Treasury and Investor Relations discussed the quarter and half year ended September 30, 2026.

Growth and disbursements

Disbursements were Rs. 2,078 crores, described as the highest ever, up 39% over the previous quarter and 74% year-on-year.
Assets under management stood at Rs. 14,640 crores, up over 6.7% over the previous quarter and 14% year-on-year.
Active loans were about 5.1 lakhs, up 5% over the previous year.
The company added 19 branches during the quarter and 75 branches over the last one year.

Collections and asset quality

Unique customer collection efficiency improved to 98.2% from 97.7% in Q1; X-bucket collections improved to 99.4% from 99.2%.
The current bucket share of AUM rose from 83.3% to 84.78%.
30+ DPD came down from 12.38% to 11.5%, and 1+ DPD from 16.7% to 15.2%.
Slippages eased to 0.68% from 0.70%, and Gross Stage-3 was broadly stable at 3.48%.
Credit cost improved to 1.80% of average AUM from 1.85%.
Stage-2 assets were about Rs. 1,173 crores, against about Rs. 1,225 crores a year earlier.

Profitability

PAT was Rs. 299 crores, up 10% sequentially and 5% year-on-year, and includes a one-time tax benefit of Rs. 19 crores relating to previous years.
Excluding that benefit, PAT was about Rs. 281 crores, up 3% sequentially.
First-half PAT was Rs. 571 crores, up 3% year-on-year.
Return on assets was 8.39% (up 28 bps sequentially) and return on equity 15.25% (up 79 bps).
Net worth was about Rs. 7,903 crores.

Funding and margins

Incremental debt of Rs. 825 crores was availed during the quarter at an all-inclusive cost of 8.43%.
Cost of funds on the book eased to 8.78% from 8.80% in Q1.
Net interest margin was broadly stable at 19.87% against 19.97% in Q1, and 16 bps higher year-on-year.
Yields were 22.26%; cost-to-income including credit costs was about 47%.
Bank borrowings formed about 69% of total borrowing, against 67% in the previous quarter.
Liquidity was close to Rs. 1,300 crores, with unavailed sanctions of about Rs. 1,100 crores.

Guidance given by management

Expects flattish credit slippages and credit cost for the rest of the year, despite industry headwinds.
Expects to cross its growth guidance for this year very comfortably, helped by disbursement momentum and collections.
Expects some increase in cost of funds, both on incremental debt and on the book, which would have some impact on spread and NIM; higher yields on incremental disbursements, effective from October 2026, are expected to cushion this.
Expects operating leverage from higher productivity, growth and tighter control over operational and credit cost to largely offset the hawkish stance of the RBI expected over the next few quarters, and to bring cost-to-income down over coming quarters and years.

How to read it

The transcript describes a quarter where disbursement growth, collection efficiency and early-bucket dues moved favourably while gross Stage-3 stayed broadly stable. A part of reported profit came from a one-time tax benefit, and management has flagged rising funding costs as a factor to watch, with the stated plan of offsetting it through pricing on new loans and operating leverage. These are management statements on the call, not a promise of future performance.

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