Five-Star Business Finance Limited (FIVESTAR) Q2 Results FY27 Preview: Date, Time, Expectations & Key Things To Watch

Five-Star Business Finance is an NBFC giving secured small-ticket loans of Rs. 3-5 lakhs to self-employed borrowers through 856 branches across 11 States/UTs, and its Q2 FY27 print lands amid an industry-wide microfinance overleverage cycle that is only now abating. The two big things to watch: whether GNPA finally declines from 3.46% as management promised, and whether credit cost at 1.85% moves back inside the guided 1.7-1.75% band.

Five-Star Business Finance Limited Q2 Results Date and Time

The board of Five-Star Business Finance Limited will meet on October 26, 2026 to approve the Q2 and H1 FY27 financial results. The trading window has been closed from October 1, 2026 until 48 hours after the results are declared.

The Q2 FY27 earnings call is scheduled for October 26, 2026 at 5:30 PM IST. Speakers are Lakshmipathy Deenadayalan (Chairman & MD) and Srikanth Gopalakrishnan (JMD & CFO), with Raghav Garg of Ambit Capital as moderator. The Q1 FY27 call recording is already available on fivestargroup.in.

The company had declared a final dividend of Rs. 2 per share (200% of the Rs. 1 face value) with the FY26 annual report, at a 5.4% payout, with a record date of July 31, 2026. No fresh dividend specifics for the Q2 FY27 results have been intimated in the retrieved announcements.

What to expect from Five-Star Business Finance Limited's Q2 FY27 results

The central question for Q2 FY27 is whether the promised GNPA inflection finally prints — management guided a decline 'starting next quarter' from the Q4 FY26 call, but Q1 FY27 GNPA instead rose 9 bps to 3.46% with credit cost at 1.85% against the 1.7-1.75% guided band. The industry backdrop is turning supportive: MFI 30+ delinquency for 5+-lender borrowers more than halved from 23.29% in December 2025 to 10.68% by June 2026, and short-term funding rates moderated significantly in August-September amid a Rs. 5.9 lakh crore system liquidity surplus — a tailwind for a lender that is roughly 69% bank-funded. On growth, Q1's historical-best disbursements of Rs. 14,964 Mn leave the FY27 path of Rs. 6,500-6,800 Cr and ~20% AUM growth requiring a higher Q2 run-rate, with the South — close to 85% of AUM across Tamil Nadu, Andhra Pradesh, Telangana and Karnataka — as the stated growth engine. Margins face a two-sided funding picture, with G-Sec and corporate bond yields hardening from mid-August through September even as bank funding eased, against management's framing of 30-40 bps yield compression and a ~13.5% spread; the RBI's 25 bps repo hike to 5.50% on October 7 falls outside this quarter but challenges the 'cost of funds stable ~8.5%' assumption going forward. The call will also need to address whether elevated opex — 7.31% of average AUM versus the 7-7.25% guided band — is reaffirmed as 'a temporary phenomenon, lasting about a year'.

Key Things To Watch

Performance vs guidance tracking: Q1 FY27 missed on three FY27 guidance metrics; the Q2 print tests whether management maintains, trims or extends them.

• GNPA — decline from Q1 FY27 — instead rose 9 bps to 3.46%; the single biggest watch item
• Credit cost — 1.7-1.75% for FY27 — tracking at 1.85% in Q1
• ROA — 8.25-8.5% for FY27 — tracking at 8.11% in Q1
• AUM — ~Rs. 16,000 Cr by end-FY27 — at Rs. 13,722 Cr in Q1, implying ~21% growth on the FY26 base
• Disbursements — Rs. 6,500-6,800 Cr for FY27 — Q1 printed Rs. 1,496 Cr, a historical best, requiring a higher Q2 run-rate
• Opex/AUM — 7-7.25% for FY27 — tracking at 7.31%; down-trend from FY28 to be reaffirmed or not

Asset quality and collections detail

• Whether GNPA declines from 3.46% and NNPA from 2.10%, with 30+ DPD at 12.38% versus the sub-12% FY27 year-end goal
• Collection efficiency of 97.9% in Q1 (excl. NPA loans) and the current book at 83.30% versus the ~85% FY27 year-end target
• Sub-Rs. 3 lakh ticket-size delinquency concentration and Karnataka performance ('a slight concern' at 5-6% of AUM), plus the rising gold-loan leverage trend

Strategic initiative updates

• Progress on the new housing product (Rs. 7-8 lakh ticket size) in development, prioritised after reviving the micro-LAP product
• Branch-addition pace against the 60-75 FY27 target — 12 added in Q1 to reach 856, with 90 of last year's 90 branches at 95% breakeven
• Leverage build toward the 2.0x debt-to-equity goal ('6 to 8 quarters from now') from the current 1.03x, with AGM-approved borrowing limit of Rs. 13,000 Cr and NCD limit of Rs. 5,000 Cr

Risks and headwinds to monitor

• Customer overleverage from unsecured and MFI lenders — management relies on collateral security and a 50% debt-burden ratio at underwriting, but gold-loan leverage is rising
• MFI competitive encroachment — 'MFI will now become a competition for our product' was the analyst framing management engaged with
• Governance: the JMD & CEO role has been vacant since August 14, 2025, and whether further board changes are addressed on the call

Narrative and tone shifts

• After two quarters of 'collections are back to normal' framing, whether the tone shifts from stabilization to growth — management called Q1 'great and satisfying' with the company 'back on its growth trajectory'