Five-Star Business Finance reported strong financial results for the quarter.

1. **Business Performance:** Loan disbursements hit a record ₹1,496.4 Cr, surging 23% QoQ and 16% YoY.

The total loan portfolio grew 4% QoQ to ₹13,721.8 Cr.

Profit after tax rose 2% YoY to ₹271.4 Cr.

Gross NPA increased slightly to 3.46%, but 30+ DPD improved to 12.38%. Collection efficiency remains robust at 97.9%. Andhra Pradesh (36%) and Tamil Nadu (28%) lead portfolio distribution.

2. **Growth Drivers & Strategy:** The company expanded its network with 12 new branches, now totaling 856, primarily targeting smaller towns.

A key focus is leveraging technology for loan origination, risk analysis, and achieving 86% digital collections.

They continue serving underserved small business owners with informal incomes through proprietary underwriting.

3. **Recent Developments:** Successfully raised ₹450 Cr in new borrowings at 8.33%, lowering the overall cost of funds to 8.80%. 4. **Key Financial Metrics:** Total income reached ₹838.7 Cr, up 6% YoY.

Basic EPS increased to ₹9.19. Net Interest Margin (NIM) is 19.97% and Return on Equity (RoE) is 14.46%. 5. **Management Outlook:** Management is optimistic about meeting full-year growth targets, anticipating consistent improvement in asset quality.

They believe the quarter provides a strong foundation for future growth and profitability.