Five-Star Bus.Fi Q1 FY27 Results (NSE: FIVESTAR)
Signal: Steady quarter
The read
Q1FY27 revenue growth decelerated to +6% YoY (vs +8.5% FY26), with PAT barely rising (+1.9% YoY) as impairment charges surged +29% and employee costs +21%. Net profit margin compressed 130bps YoY to 32.36%. The bright spot was a -8.4% YoY drop in finance costs, improving NII growth to +10.2% YoY. Asset quality showed mild deterioration: GNPA rose to 3.46% from 3.37% sequentially. The debt-equity ratio improved to 1.03x from 1.11x, and CAR remained strong at 51.25%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹838.74 Cr | 6.01% | 1.54% |
| EBIT | ₹361.95 Cr | 1.97% | |
| Net profit | ₹271.41 Cr | 1.91% | |
| EPS | ₹9.19 | 1.66% | |
| EBIT margin | 0% |
P&L walk
Revenue growth slowed to +6% YoY (vs +8.5% in FY26), primarily interest income driven (+5.6% YoY). Impairment on financial instruments rose +29.4% YoY, outpacing revenue growth, pushing credit cost to 7.37% of income vs 6.04% a year ago. Operating profit (PBT) grew only +2% YoY due to higher employee costs (+21% YoY) and impairment. Net profit margin compressed 130bps YoY to 32.36%. EPS growth (+1.7% YoY) lagged PAT growth (+1.9%) marginally due to option exercises diluting equity.
Segments
Single-segment NBFC operating in India; no segment disclosure.
Key positives
- Finance costs declined -8.4% YoY, driving NII growth (+10.2% YoY) well above revenue growth.
- Debt-equity ratio improved to 1.03x from 1.11x (Mar'26); net worth grew +3.7% to ₹7,65,342 lakh.
- Capital adequacy ratio remains very strong at 51.25% (vs 51.89% Mar'26).
- Liquidity coverage ratio improved to 296% from 258% (Mar'26).
Key concerns
- Impairment on financial instruments surged +29.4% YoY, pushing credit cost to 7.37% of total income vs 6.04% a year ago.
- Gross Stage 3 assets edged up to 3.46% from 3.37% sequentially; Net Stage 3 rose to 2.10% from 2.00%.
- Employee costs grew +21% YoY, far outpacing revenue growth (+6%), compressing margins.
- PAT growth (+1.9% YoY) was tepid; net profit margin contracted 130bps YoY to 32.36%.
- Revenue growth decelerated to +6% YoY vs +8.5% in FY26.
Research and educational content only. Not investment advice.