Indostar Capital Q4 FY26 Results (NSE: INDOSTAR)
Signal: Slipped to loss
The read
Q4FY26 standalone net loss of ₹424 Cr due to massive impairment provisions of ₹517 Cr, overshadowing revenue stability; full year profit only due to exceptional gain on NHFL sale; asset quality deteriorated with GNPA rising to 4.77% and credit cost spiking.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹346.74 Cr | -7.4% | 0.1% |
| Net profit | ₹-423.96 Cr | -3513% | |
| EPS | ₹-26.25 | -2985% | |
| EBIT margin | 0% |
P&L walk
Revenue flat QoQ at ₹34,674 Lakh (-7.4% YoY), but massive impairment provision of ₹51,727 Lakh (up 947% YoY) flipped PBT to a loss of ₹42,396 Lakh; full-year PAT of ₹13,020 Lakh solely due to exceptional gain on NHFL sale; underlying operations deeply loss-making.
Key positives
- Provision Coverage Ratio strengthened to 57.40% from 46.65% a year ago, improving loss-absorbency.
- Net debt reduced by ₹1,32,751 Lakh to ₹5,17,145 Lakh, lowering leverage.
- NNPA ratio improved to 2.09% from 2.46% YoY, aided by higher provisions.
Key concerns
- Q4 net loss of ₹42,396 Lakh versus profit of ₹1,242 Lakh in Q4FY25, driven by impairment of ₹51,727 Lakh (up 947% YoY).
- Underlying operations are deeply loss-making; full-year profit of ₹13,020 Lakh entirely due to exceptional gain of ₹1,17,595 Lakh on sale of NHFL.
- GNPA ratio rose to 4.77% from 4.52% YoY, indicating asset quality stress.
- Credit cost for FY26 jumped to ₹1,14,322 Lakh from ₹13,752 Lakh in FY25, nearly 8.3x.
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