Five-Star Bus.Fi Q2 FY27 Results (NSE: FIVESTAR)
Signal: Earnings grew
The read
The quarter shows modest operating growth but weaker earnings quality: total income rose 8.5% YoY to 87503.25 lakh, while impairment rose 26.1% to 6433.41 lakh and PAT grew only 4.6%; asset quality also deteriorated from 3.37% gross Stage 3 at March to 3.48%, while the reported PAT benefited from a 1875.30 lakh prior-year tax reversal.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹875.03 Cr | +8.5% | +4.3% |
| Net profit | ₹299.32 Cr | +4.6% | |
| EPS | ₹10.14 | +4.3% | |
| EBIT margin | 0% |
P&L walk
Total income rose 8.5% YoY and 4.3% QoQ to 87503.25 lakh, while PAT rose only 4.6% YoY to 29931.75 lakh as impairment increased 26.1% YoY to 6433.41 lakh; the reported PAT also benefited from a 1875.30 lakh reversal of excess prior-year tax provision.
Key positives
- Total income reached 87503.25 lakh, up 8.5% YoY and 4.3% QoQ, with interest income up 7.8% YoY to 83344.27 lakh.
- Finance costs declined 6.8% YoY to 16769.10 lakh, expanding the implied interest income less finance-cost pool by 12.2% YoY to 66575.17 lakh.
- Basic EPS rose 4.3% YoY to ₹10.14 and broadly tracked 4.6% PAT growth, with no material PAT-to-EPS divergence.
- Liquidity coverage strengthened to 300% from 258% at March 31, 2026, while the debt-equity ratio improved to 1.01x from 1.11x.
Key concerns
- Impairment on financial instruments increased 26.1% YoY to 6433.41 lakh, materially faster than total-income growth of 8.5%.
- Gross Stage 3 assets increased to 3.48% from 3.37% at March 31, 2026, and net Stage 3 increased to 2.14% from 2.00%.
- Employee benefits expenses increased 42.1% YoY to 20407.81 lakh, substantially exceeding total-income growth of 8.5%.
- H1 operating cash flow was negative at -77068.62 lakh versus -32629.54 lakh in the prior-year half, reflecting heavy cash absorption by the loan book.
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