Analysts/Institutional Investor Meet/Con. Call Updates

30th October 2026 The National Stock Exchange of India Limited, BSE Limited Exchange Plaza, Listing department, Bandra-Kurla Complex, First floor, PJ Towers, Bandra (E), Mumbai 400 051 Dalal Street, Fort Mumbai 400 001 Symbol: FIVESTAR Scrip code: 543663, 974905,975246,975598 Sub: Transcript of the Earnings Conference Call for the quarter and half year ended September 30, 2026 Dear Sir/Madam, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the transcript of the Earnings Conference Call held on October 26, 2026. The transcript can also be accessed from the link: https://fivestargroup.in/investors/ Kindly take the above on record. For Five-Star Business Finance Limited Vigneshkumar SM Company Secretary & Compliance Officer “Five-Star Business Finance Limited Q2 FY27 Earnings Conference Call” October 26, 2026 MANAGEMENT: MR. LAKSHMIPATHY DEENADAYALAN – CHAIRMAN AND MANAGING DIRECTOR, FIVE-STAR BUSINESS FINANCE LIMITED MR. SRIKANTH GOPALAKRISHNAN – JOINT MANAGING DIRECTOR AND CHIEF FINANCIAL OFFICER, FIVE-STAR BUSINESS FINANCE LIMITED MR. PRASHANTH SREENIVASAN– CHIEF OF TREASURY AND INVESTOR RELATIONS, FIVE-STAR BUSINESS FINANCE LIMITED MODERATOR: MR. RAGHAV – AMBIT CAPITAL PRIVATE LIMITED Page 1 of 22 Five-Star Business Finance Limited October 26, 2026 Moderator: Ladies and gentlemen, good day and welcome to Five-Star Business Finance 2QFY27 Earnings Conference Call hosted by Ambit Capital Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing ‘*’, then ‘0’ on your touchtone phone. Please note, this conference is being recorded. I now hand the conference over to Mr. Raghav. Thank you and over to you, sir. Raghav: Good evening, everyone. On behalf of Ambit Capital, I would like to welcome you all to the 2QFY27 Earnings Call for Five-Star Business Finance. Joining us from the management today, we have Mr. Lakshmipathy Deenadayalan - Chairman and Managing Director; Mr. Srikanth Gopalakrishnan - Joint Managing Director and CFO, and Mr. Prashanth Sreenivasan - Chief of Treasury and Investor Relations. I would like to first thank the management for giving us this opportunity to host the earnings call. We can now begin with the opening remarks from Mr. Lakshmipathy, post which we can open the floor for questions. Thank you and over to you, sir. Lakshmipathy Deenadayalan: Thank you, Raghav. Good evening, everyone. I am extremely happy to present to you all the details about another quarter of strong performance of Five-Star Business Finance. The quarter ended September 30, 2026, saw Five-Star delivering very strong numbers across various parameters. Our upward trajectory in disbursements continued during the current quarter as well, where we recorded our historical best disbursement of Rs. 2,078 crores, up 39% over previous quarter and 74% year-on-year. The loan book also saw robust growth with our AUM at Rs. 14,640 crores, a growth of over 6.7% over the previous quarter and 14% year-on-year. Importantly, this growth has come alongside improving collections and stable asset quality and profitability. Collections continue to trend very well with our unique customer collection efficiency improving to 98.2% in the current quarter from 97.7% in Q1, along with improvement in X- bucket collections to 99.4% from 99.2% in Q1, which has helped contain forward flows. As a result, the current bucket proportion of our AUM rose sharply from 83.3% to 84.78% and 30 plus DPD came down from 12.38% to 11.5%. With our clear focus on containing flows from early buckets, I am very confident that we will continue to see our portfolio quality improving in coming quarters. Page 2 of 22 Five-Star Business Finance Limited October 26, 2026 Slippages eased marginally to 0.68% from 0.70% in Q1 and Gross Stage-3 assets were broadly stable at 3.48%, despite macroeconomic headwinds being witnessed across the industry. The credit cost improved to 1.80% of average AUM from 1.85% in Q1. We expect flattish credit slippages and credit cost for the rest of the year, despite the industry headwinds. Let me repeat, we expect flattish credit slippages and credit cost for the rest of the year, despite the industry headwinds. With our collection framework getting better than expected results, we continue to focus on bringing back the growth momentum Five-Star is known for. With strong collections, controlled slippages and credit cost, we are well poised to continue our strong traction in disbursements in coming quarters, which will help us cross our growth guidance for this year very comfortably. We availed incremental debt of Rs. 825 crores during the quarter at an all-inclusive cost of 8.43% and our cost of funds on book eased marginally to 8.78% from 8.80% in Q1. Net interest margin remained broadly stable at 19.87% as against 19.97% in Q1, and was 16 bps higher year-on- year, showing that our spreads have held up despite the drop in yields. With the tightening rate cycle, we expect to see some inch-up in our cost of funds, both on incremental debt and on our book, which would have some impact on spread and NIM. However, we expect to cushion this impact through yield increases on our incremental disbursements, which has been made effective from October 2026. Further, through the operating leverage that we will be able to achieve going forward, resulting from increased productivity, higher growth, tighter control over operational and credit cost, we are confident of largely offsetting the hawkish stance of RBI expected for the next few quarters. On the profitability side, we clocked a PAT of Rs. 299 crores for the quarter, up 10% sequentially and 5% year-on-year. This includes a one-time tax benefit of Rs. 19 crores pertaining to previous years. Even excluding this, our PAT was 3% higher on a sequential basis. We have seen improvements to return ratios compared to the previous quarter. ROA was up 28 bps to 8.39%, and ROE up 79 bps to 15.25%. For the first half of this year, we have clocked a PAT of Rs. 571 crores, up 3% year-on-year. After a year beset with challenges across multiple fronts, we have bounced back stronger than before. Some of these numbers across disbursements and collections are our historical best and clearly validate the actions we have taken over the last few quarters. They have also strengthened our confidence that we are moving in the right direction of onwards and upwards. Let me hand it over to Srikanth for further details. Srikanth Gopalakrishnan: Thank you, sir. A very good evening to all of you. As Mr. Pathy highlighted, this has been our best quarter over the last couple of years, after the last couple of years being beset with multiple challenges facing the company as well as the industry, with all the metrics stacking up very well across various parameters. Alongside our Page 3 of 22 Five-Star Business Finance Limited October 26, 2026 focus on increasing ticket size, we have also been growing our customer base, with the active loans standing at about 5.1 lakhs, representing a growth of 5% over the previous year. During this quarter, we added 19 branches, and over the last one year we have added 75 branches, the clear thought being focusing on deepening our presence in our core geographies and also putting up additional branches in those states, where we have been operating for a while and developed good comfort across various aspects. Disbursements for the quarter grew by 74% Y- o-Y, and AUM growth was at 14% year-on-year. We ended September 30th with an AUM of Rs. 14,640 crores. Yields were marginally down at 22.26%, with the average cost of funds being marginally better. The NIM stood at 19.87%, better than a year ago, while the cost-to-income, inclusive of credit costs, rem [Showing first 8,000 characters — download PDF for full document]