Shares of Five-Star Business Finance Ltd declined as much as 8% to ₹617.75 on the NSE on Tuesday, a day after the company reported its Q1 FY26 earnings. Despite reporting a 6% year-on-year rise in net profit to ₹266.3 crore, and net interest income (NII) rising 20% to ₹577 crore, investor sentiment was dented by worsening asset quality metrics.
The company’s gross NPA rose sharply to 2.46%, up 67 bps quarter-on-quarter and 105 bps YoY. The 30+ days past due (DPD) metric also surged to 11.31%, reflecting stress in collections. Both return on assets (RoA) and return on equity (RoE) saw declines to 7.24% and 16.57%, respectively.
While the company’s loan portfolio grew 20% YoY, loan disbursement declined by 12% QoQ. Investors appear concerned that the elevated delinquencies may hurt profitability going forward, despite headline growth.
