Analysts/Institutional Investor Meet/Con. Call Updates

31st July 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 Sub: Transcript of the Earnings Conference Call for the quarter ended June 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 July 27, 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 Q1 FY27 Earnings Conference Call” July 27, 2026 MANAGEMENT: MR. LAKSHMIPATHY DEENADAYALAN – CHAIRMAN AND MANAGING DIRECTOR MR. SRIKANTH GOPALAKRISHNAN – JOINT MANAGING DIRECTOR AND CHIEF FINANCIAL OFFICER MR. PRASHANTH SREENIVASAN – CHIEF, TREASURY AND INVESTOR RELATIONS MODERATOR: MR. SANKET CHHEDA – DAM CAPITAL Moderator: Ladies and gentlemen, good day, and welcome to Five-Star Business Finance Q1 FY27 Earnings Conference Call. 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 star then zero on your touch-zone phone. Please note that this conference is being recorded. Page 1 of 22 Five Star Business Finance Limited July 27, 2026 I now hand the conference over to Mr. Sanket Chheda from DAM Capital. Thank you, and over to you, Mr. Chheda. Sanket Chheda: Hi everybody. Good morning to all of you. Welcome to Five-Star Q1 Earnings Call. We have with us the entire management team today Mr. Lakshmipathy Deenadayalan, who is the Chairman and Managing Director. Then we have Mr. Srikanth Gopalakrishnan, who is Joint MD and CFO; and Mr. Prashanth Sreenivasan, the Chief of Treasury and Investor Relations. Without further ado, I'll hand the call over to Lakshmipathy sir for his opening remarks, and then we will follow that up with question and answers. Over to you, sir. Lakshmipathy D.: Yes. Thank you. First of all, let me welcome you all for this Q1 Earnings Call Financial Year 2027. At the onset of strong momentum, I feel delighted to present the performance of Five-Star Business Finance for the quarter ended June 2026. The quarter panned out in line with our expectations, which vindicated the actions we took to overcome the challenges we faced. The most heartening facet of this quarter is the strong traction in disbursements that we have achieved. We clocked our historical best in disbursement with quarterly disbursements coming in at INR1,496 crores, a growth of 23% over the previous quarter and 16% over the previous year. We ended the quarter with an AUM of INR13,722 crores, which is a sequential growth of 4% for the quarter. This clearly shows that Five-Star is on the growth trajectory. And at this pace of quarterly growth, we should be able to achieve our full year growth guidance very comfortably. Collections continues to remain robust despite being the seasonally soft quarter. For the quarter ended June 30, 2026, we clocked a unique customer collection efficiency of 97.9% versus 98.1% last quarter, with our x-bucket collections coming in at 99.2% versus 99.3% in previous quarter. On the result of this, our current book continues to improve and stood at 83.30% as compared to 82.69% as of previous quarter. We also saw a good improvement in our 30-plus book, which reduced to 12.38% as compared to 12.69% in the previous quarter. With our strong collections, we should see asset quality metrics consistently improving in the quarters to come. Our slippages remained flat at 0.70% compared to the previous quarter. And despite the seasonally soft nature of this quarter, our credit cost dropped sequentially to 1.85% for Q1 financial year '27 from 1.88% for the Q4 financial year '26. On the borrowing front, our all-inclusive cost was at 8.33% despite not so favourable liquidity conditions. This has also helped bring down our cost of fund on the book from 8.95% for Q4 to 8.80% for the Q1 this year. Not only did this ensure our spreads to remain intact despite drop in our yields in last October 2024, but this also shows the strength of our franchise from the perspective of external stakeholders. Page 2 of 22 Five Star Business Finance Limited July 27, 2026 On the whole, it has been a great and satisfying quarter for Five-Star and sets the platform for the company to achieve a strong trajectory across the facets of growth, profitability and quality in the quarters to come. I also want to take this opportunity to state that notwithstanding whatever has been happening over the last year or so, both external and internal, Five-Star has been able to demonstrate very strong numbers across various metrics. This clearly shows the strength of the institution that we have built and re-establishes the fact that we are not an institution that is dependent on few individuals. The individuals may come and go, but the institution will go on forever. On this positive note, now I would like to hand over to Srikanth. Srikanth Gopalakrishnan: A very good morning to all of you. Mr. Pathy has outlined a lot of metrics that really gave us tremendous encouragement during this quarter, and it has been a very, very encouraging quarter for all of us. During this quarter, one other milestone that we crossed is to achieve 500,000 active loan customers as on 30th June, which is a very significant milestone in the journey of the company. From a branch perspective, we continue to keep adding branches, primarily in the newer states. We added about 12 branches during this quarter, largely coming in from the state of Maharashtra and ended June with about 856 branches, which is a very strong infrastructure that we can build upon in the quarters to come towards achieving our growth targets. Our yields continue to remain consistent in line with the drop in yields that we did about a couple of years back. You will see about 10-15 basis points of reduction in yields on a quarterly basis. So there was a 12 basis points drop in our yields. However, this was more than compensated by the drop in the average cost of funds, which dropped by about 15 basis points, resulting in a spread of 3 basis points higher compared to the last quarter. The NIM continues to be flat. We had achieved an ROA of about 8.11% for the current quarter, ROE of close to 14.5%. From a collections perspective, 2 metrics stand out. Mr. Pathy had already outlined this in his opening remarks, but I just want to reiterate the fact that achieving a 60 basis points drop in the 1-plus number and achieving a 30 basis points drop in the 30-plus number, especially in a softer quarter like Q1, shows that we are completely back on collections and the collections is on a very strong trajectory. Our provision coverage on the Stage 3 book continues to remain healthy at over 40%. And on the overall AUM, we are close to about 1.8% of provision coverage. On the profitability side, we ended the quarter with about INR271 crores of PAT. And our net worth as of 30th June stands at about INR7,653 crores. Page 3 of 22 Five Star Business Finance Limited July 27, 2026 As we said, it has been a very strong quarter for us after 4 quarters of some challenges that we faced. This quarter has been immensely satisfying and we are extremely confident in our mind that we will be able to achieve all the guidances that we gave you comfortably in the quarters to come. On that strong note, we would like to take any questions that any of you may have. Thank you so much. Moderator: Thank you. We will now begin the question and answer session. The first question comes from the line of Re [Showing first 8,000 characters — download PDF for full document]