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Five-Star Business Finance Limited Investor Presentation | Q3FY2026 Reaching the Unreached STRICTLY PRIVATE AND CONFIDENTIAL
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Safe Harbour 2 This presentation and the accompanying slides (the “Presentation”) which have been prepared by Five-Star Business Finance Limited (the “Company”) have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, the Presentation is expressly excluded. This Presentation contains certain forward-looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost overruns on contracts, our ability to manage our international operations, government policies and action regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward-looking statement become materially incorrect in future or update any forward-looking statements made from time to time by or on behalf of the Company.
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Glossary 3 ▪ All amounts are given in ₹ Million unless specified otherwise. ▪ Gross NPA or Gross Stage 3 assets represents loans which are more than 90 days past due (till the quarter ended Sep 2022); for the quarters post Sep 2022, this has been computed as per guidelines stipulated by RBI vide their circulars on Prudential Norms on Income recognition and Asset classification dated Nov 12, 2021 and Feb 15, 2022 (wherein implementation of upgradation norms were deferred to October 1, 2022) i.e loans that have crossed 90 days past due any time since October 1, 2022 and not cleared their arrears fully. This is expressed as a percentage of AUM. ▪ Net Stage 3 Assets % or Net NPA % computed as Gross Stage 3 assets reduced by Stage 3 ECL as a percentage of AUM reduced by Stage 3 ECL ▪ Number of loans stated in any of the slides includes securitized loans. AUM is inclusive of securitized portfolio. ▪ Total assets represents the period ending Balance Sheet assets. Total assets used for computations is gross of Impairment allowance on Loan assets. ▪ Average total assets represents the monthly average of Balance Sheet assets. Average Total assets used for computations is gross of Impairment allowance on Loan assets.
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Presentation Path 4 Executive Summary SECTION 2 SECTION 4 SECTION 6 SECTION 1 SECTION 3 SECTION 5 Business Updates Asset Quality & ECL Liability & ALM Financial Statements Company Overview
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EXECUTIVE SUMMARY
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Executive Summary | Q3FY26 6 835 Branches +35 +106 ₹ 9,764 Mn Loan Disbursement -18% +4% ₹ 129,641 Mn Loan Portfolio +1% +16% 3.18% Gross NPA +54 bps +1.56% 12.81% 30+ DPD +64 bps +3.65% ₹ 2,770 Mn Profit After Tax -3% +1% 16.04% Net Interest Margin -37 bps -52 bps 7.00% Return on Assets -49 bps -1.10% 15.80% Return on Equity -1.11% -2.69% q-o-q y-o-y
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Executive Summary | 9MFY26 7 835 Branches +106 ₹ 34,624 Mn Loan Disbursement -1% ₹ 129,641Mn Loan Portfolio +16% 3.18% Gross NPA +1.56% 12.81% 30+ DPD +3.65% ₹ 8,295Mn Profit After Tax +5% 16.31% Net Interest Margin -42 bps 7.26% Return on Assets -97 bps 16.41% Return on Equity -2.40% y-o-y
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Q3FY26 Performance – At a glance 8 Asset Quality 1.44% Q3FY26 Credit Cost to Average Total Assets ₹ 0.20% / 33.82% Total Restructured Portfolio / Provision Coverage on restructured book 1.94% Q3FY26 Net Stage 3 Assets 3.18% Q3FY26 Gross Stage 3 Assets Granular Book 491,782 Live accounts 100% Secured Loan Book (95% against SORP) 39.5% Average Portfolio LTV (As of Dec 31, 2025) ₹0.39mn Average ticket size for loans disbursed in Q3FY26 Distribution 835 Number of Branches Presence in 11 States / UT across India (focused on expansion) 8,181 Business and Collections Officers 100% In-house Sourcing & Collections Liability Profile 45 Lender relationships Borrowing profile Well-diversified profile with variable rate borrowings of ~67% 51.63% Q3FY26 Capital Adequacy Ratio AA- Long term credit rating by ICRA, CARE and India Ratings Profitability ₹2.8bn / ₹2.7bn PAT for Q3FY26 / Q3FY25 1% growth Y-o-Y 16.04% Net Interest Margin for Q3FY26 7.00% Return on Total Assets for Q3FY26 15.80% Return on Avg. Equity for Q3FY26 ₹ ₹ Scale of Operations ₹9.8bn / ₹9.4bn Amount Disbursed in Q3FY26 / Q3FY25 ₹129.6bn / ₹111.8bn AUM in Q3FY26 / Q3FY25 16% growth Y-o-Y 24,829 / 27,449 Number of Disbursements in Q3FY26 / Q3FY25 ₹70.8bn Net Worth
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Last 10-years Financial Snapshot 9 Particulars (₹ Mn) FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 I-GAAP I-GAAP I-GAAP IND-AS IND-AS IND-AS IND-AS IND-AS IND-AS IND-AS Operational Information Number of branches 64 103 130 173 252 262 299 373 520 748 Loan disbursals 1,319 3,830 7,072 14,822 24,087 12,450 17,562 33,914 48,814 49,697 AUM 1,981 4,936 10,084 21,128 38,922 44,454 50,671 69,148 96,406 118,770 Number of employees 293 737 1,290 1,971 3,734 3,938 5,675 7,347 9,327 11,934 Financial Information Total Income 473 871 2,082 4,089 7,873 10,513 12,562 15,289 21,951 28,660 Interest expenses 141 238 578 769 2,156 3,261 2,984 2,636 4,653 6,635 Net Interest Income (NII) 332 633 1,504 3,320 5,717 7,252 9,578 12,653 17,298 22,025 Operating Expenses 122 293 625 1,060 1,731 2,136 3,081 4,405 5,585 6,830 Loan losses & Provisions 7 28 93 76 493 352 455 201 554 890 Profit Before Tax (PBT) 203 312 786 2,184 3,493 4,764 6,042 8,047 11,159 14,306 Profit After Tax (PAT) 134 196 558 1,567 2,620 3,589 4,535 6,035 8,359 10,725 Total Comprehensive Income 134 196 558 1,563 2,608 3,582 4,513 6,013 8,341 10,696 Ratios Cost to Income 38.86% 50.79% 47.74% 34.22% 38.90% 34.31% 36.92% 36.40% 35.49% 35.05% Return on Total Assets 6.87% 4.27% 5.82% 8.78% 7.31% 6.99% 7.16% 8.62% 8.42% 8.18% Return on Equity 16.47% 12.40% 12.97% 15.14% 15.36% 16.85% 13.85% 15.03% 17.60% 18.68% Gross Stage 3 assets 1.82% 2.47% 1.43% 0.89% 1.37% 1.02% 1.05% 1.36% 1.38% 1.79% Net Stage 3 assets 1.53% 2.08% 0.95% 0.68% 1.13% 0.84% 0.68% 0.69% 0.63% 0.88% Provision Coverage Ratio - overall AUM 0.54% 0.79% 0.97% 0.80% 1.58% 1.95% 2.03% 1.61% 1.64% 1.63% Provision Coverage Ratio - Stage 3 16.34% 16.24% 33.89% 22.99% 17.67% 17.92% 34.91% 49.33% 54.27% 51.31% CRAR 39.14% 43.78% 58.82% 64.09% 52.94% 58.86% 75.20% 67.17% 50.50% 50.10% Debt / Equity ratio 1.43 2.04 0.92 0.70 1.22 1.48 0.69 0.98 1.22 1.26
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Distinguished Board of Directors 1010 Lakshmipathy Deenadayalan Chairman & Managing Director Promoter Director Anand Raghavan Shriram Life Insurance, Muthoot Microfin, SK Finance, Aptus Value Housing Bhama Krishnamurthy CIFCO, Muthoot Microfin Independent / Non- Executive Directors Select other Directorships T T Srinivasaraghavan Sundaram Finance, Sundaram Home Finance, R K Swamy Ramkumar Ramamoorthy CIFCO, Catalincs Partners Thirulokchand Vasan C K Entertainments Executive Director Srikanth Gopalakrishnan Joint Managing Director & CFO
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Profile of Board of Directors 11 Anand Raghavan Independent / Non-Executive Director Chairperson – Audit Committee Chartered Accountant with over 30 years of experience occupying senior position in Sundaram Finance and Ernst & Young LLP. His specializations include NBFC Regulations, Corporate Tax and Foreign Investment. He is also a director on the Boards of Muthoot Microfinance, Shriram Life, SK Finance and Aptus Value Housing T T Srinivasaraghavan Independent / Non-Executive Director Chairperson – Risk Management Committee Graduate in Commerce and holds an MBA degree from the Gannon University, Pennsylvania. He began his career as a banker, before moving to Sundaram Finance in 1983, where he spent almost 4 decades including 18 years as its Managing Director. He is also on the Boards of Sundaram Finance, Sundaram Home and RK Swami Bhama Krishnamurthy Independent / Non-Executive Director Chairperson – Nomination & Remuneration Committee She was the Country Head and Chief General Manager of SIDBI. She has closely dealt with Multilateral and Bilateral Agencies in close co-ordination with the Government of India. She was also associated with drafting of CSR Policy guidelines for the Bank. She was the Chairperson at CSB Bank and her other directorships include CIFCO, and Muthoot Microfinance Ramkumar Ramamoorthy Independent / Non-Executive Director Chairperson – IT Strategy Committee Associated with Cognizant India for over 22 years, before retiring as Chairman and MD, responsible for the company’s India operations. Prior to joining Cognizant, Ramkumar worked for Tata Consultancy Services. He is now a Partner at Catalincs, a strategic advisory firm that helps small tech companies scale and grow, and is also on the Board of CIFCO Lakshmipathy Deenadayalan Chairman & Managing Director Engineering graduate and was the MD of RKV Finance before joining Five Star. Pivoted the Company towards secured business lending and built the Company to its current size from scratch. Associated with multiple industry associations Srikanth Gopalakrishnan Joint Managing Director / CFO Finance professional with over 20 years of experience. Started his career with Citigroup and was CFO of Asirvad Microfinance before joining Five Star. He has completed his B.Com and MBA from Sri Sathya Sai Institute of Higher Learning with gold medals in both the courses Trilokchand Vasan Non-Executive Director Thirulokchand is a Hotel Management Graduate with over 17 years of experience in the Hospitality business. His areas of expertise include Team Management, Customer satisfaction and Process Optimization
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26 Sai Suryanarayana Chief People Officer Ramesh Kannah Chief Legal Officer Prashanth Sreenivasan Chief Treasury Officer Jayaraman Sankaran Chief Risk Officer Vanamali Sridharan Chief Technology Officer Sathya Ganesh Chief Business Officer Parthasarathy Srinivasan Chief Credit Officer Vishnuram Jagannathan Chief Operating Officer Srikanth Gopalakrishnan JMD & CFO Lakshmipathy Deenadayalan Chairman & MD Experienced Management Team 12 23 23 23 10 23 8 22 7+ 27 8+ 33 4 27 5 24 8 26 3 Education: Bachelor of Engineering Education: B.Com, MBA Experience: Citibank, Asirvad Microfinance Education: B.Com, MBA Experience: HDFC Bank, Deutsche Bank, HSBC Education: B.Com, CA Experience: ICICI Bank, Stanchart, DBS Bank Education: B.Com, M.Com, MBA Experience: ICICI Bank, Cholamandalam, Shriram Housing Education: B.E, MBA Experience: Stanchart (Dubai), Accenture, Equitas SFB, Suryoday SFB Education: B.Com, CA Experience: Redington India Education: B.Com, MBA Experience: TVS Credit, Marg Limited Education: LLB, MBA, CAIIB Experience: HDFC Limited, ICICI Bank, Cholamandalam, Piramal Capital Education: B.Com, PGDPM Experience: ITC Limited, Toyota Financial Services, ING Vysya Bank, AU SFB, Fincare SFB 29 2 Total years of experience Years at Five Star
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BUSINESS UPDATES
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Business Updates (1/2) 1. Net Q-o-Q AUM growth of ₹1,170 Mn in Q3FY26 as against ₹2,509 Mn in Q3FY25. AUM was up 16% Y-o-Y at ₹129,641 Mn as of Dec 31, 2025 as against ₹111,781 Mn as of Dec 31, 2024. 2. Disbursements during the quarter was at ₹9,764 Mn as against ₹9,408 Mn during Q3FY25. 3. Active loans at 0.49 Mn as of Dec 31, 2025 as against 0.44 Mn as of Dec 31, 2024. 4. The Company added 35 branches during the quarter. Total branch count stood at 835 as against 729 branches as of Dec 31, 2024. 5. Total Headcount stood at 13,854 as against 11,207 as of Dec 31, 2024. Operations 1. Overall Collections efficiency for the quarter stood at 96.6% as against 96.7% for Q2FY26. Unique loan collections % (Due One Collect One or D1C1) stood at 95.1% for the quarter as against 95.1% for Q2FY26. 2. Current portfolio as a % of the overall portfolio stood at 81.77%. 3. Gross & Net Stage 3 assets stood at 3.18% and 1.94% respectively as of Dec 31, 2025 as against 1.62% and 0.81% as of Dec 31, 2024. 4. Overall Stage 2 assets stood at ₹12,486 Mn (9.63%) as of Dec 31, 2025 as against ₹ 8,431 Mn (7.54%) as of Dec 31, 2024. 5. The Provision coverage on Stage 3 assets stood at 39.84% and the provision coverage on the overall portfolio stood at 1.83%. Collections & Asset Quality 14
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Business Updates (2/2) 1. In Q3FY2026, Net total income (Total income less Cost of funds) grew by 13% to ₹6,337 Mn as against ₹5,597 Mn in Q3FY2025 2. PPOP for Q3FY2026 stood at ₹4,259 Mn, an increase of 10% as compared to Q3FY2025 3. As compared to Q3FY2025, PBT and PAT increased by 1% and 1% respectively and stood at ₹3,688 Mn and ₹2,770 Mn respectively for Q3FY2026 4. Cost to income (inclusive of credit cost) stood at 41.93% as compared to 34.87% for Q3FY2025. Excluding credit cost, Cost to income for Q3FY2026 was at 32.93% as compared to 30.72% for Q3FY2025. 5. Return on Average Total Assets was at 7.00% as compared to 8.10% for Q3FY2025 6. Return on Equity was at 15.80% for Q3FY2026 as compared to 18.49% for Q3FY2025 7. Capital adequacy remained robust at 51.63% Financials 1. In Q3FY2026, the company received sanctions for incremental debt of ₹12,250 Mn, availing ₹4,600 Mn, at a weighted average rate of 8.09%, and all-inclusive cost of 8.19%. 2. As at the end of December 2025, the proportion of funding received from banks stood at 69% as compared to 68% in Q2FY26. 3. During Q3FY26, the Company has signed a loan agreement for a $100 Mn. facility with Asian Development Bank (ADB), one of the largest and most eminent DFIs globally. 4. Liquidity buffer and Unavailed Sanction lines as of Dec 31, 2025 stood at about ₹22,764 Mn and 14,400 Mn respectively. Liabilities 15
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Balance Sheet Indicators 9,408 11,959 9,764 Disbursements 1,11,781 1,28,471 1,29,641 AUM 60,171 68,067 70,830 Net Worth 73,625 83,760 81,985 Borrowings 1,863 2,431 2,369 Expected Credit Loss (18%) 16% 1% 18% 4% 27% (3%) 11% (2%) 12,450 17,562 33,914 48,814 49,697 Disbursements 44,454 50,671 69,148 96,406 1,18,770 AUM Quarterly Data Last 5 years data All amounts in ₹ Mn Q3FY25 Q2FY26 Q3FY26 Q3FY25 Q2FY26 Q3FY26 Q3FY25 Q2FY26 Q3FY26 Q3FY25 Q2FY26 Q3FY26 Q3FY25 Q2FY26 Q3FY26 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 Liquidity does not include lien-marked FDs 16 4% 21,447 23,600 22,764 Liquidity Q3FY25 Q2FY26 Q3FY26
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Five Star Business Finance Limited | Investor Presentation – Q3FY26P&L Indicators 7,311 8,065 8,222 Income 1,714 1,800 1,885 Interest Expense 1,713 1,936 2,078 Other Expenses 3,651 3,819 3,688 PBT 2,739 2,861 2,770 PAT 12% 2% (10%) (5%) (21%) (7%) 1% (3%) All amounts in ₹ Mn 10,513 12,562 15,289 21,951 28,660 Income 3,582 4,513 6,035 8,359 10,725 PAT Quarterly Data Q3FY25 Q2FY26 Q3FY26 Q3FY25 Q2FY26 Q3FY26 Q3FY25 Q2FY26 Q3FY26 Q3FY25 Q2FY26 Q3FY26 Q3FY25 Q2FY26 Q3FY26 Q3FY25 Q2FY26 Q3FY26 1% FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 Last 5 years data (3%) 17 233 510 571 Credit Cost (12%) (145%)
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Consistent & Best-in-class Spreads 24.18% 23.98% 23.70% 23.51% 23.20% 23.01% 9.65% 9.63% 9.63% 9.54% 9.27% 9.12% Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 24.18% 24.17% 24.05% 24.23% 24.27% 24.03% 12.07% 11.48% 10.51% 10.12% 9.71% 9.64% FY20 FY21 FY22 FY23 FY24 FY25 12.11% 12.69% 13.54% 14.11% 14.56% 14.39% FY20 FY21 FY22 FY23 FY24 FY25 14.53% 14.35% 14.07% 13.97% 13.93% 13.89% Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Portfolio Yield Cost of borrowing Spread 18
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Well-diversified portfolio cuts Q3FY251% 8% 15% 33% 43% 29% 36% 19% 5% 8% 3% AUM by Geography 29% 38% 19% 6% 6% 1% TN AP TS KA MP OTH 29% 52% 17% 1% 0% AUM by Ticket Size 34% 53% 12% 1% 0% <=3L 3-5L 5-10L 10-15L >15L 1% 8% 14% 31% 46% AUM by Branch Tier 36% 49% 12% 3% AUM by Vintage of loans 40% 47% 9% 4% <1Y 1-3Y 3-5Y >5Y Q3FY26 Q3FY26 Q3FY25 Q3FY26 Q3FY25 Q3FY26 Q3FY25 Tier 1 & 2 Tier 3 Tier 4 Tier 5 Tier 6 ATS for Q3FY26 3.93L ATS for Q3FY25 3.43L 19
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ASSET QUALITY & ECL
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Asset Quality Indicators (1/2) 0.73 0.80 1.14 1.38 1.91 0.08 0.08 0.11 0.12 0.03 Dec'24 Mar'25 Jun'25 Sep'25 Dec'25 Gross Stage 3 Assets (%) Net Stage 3 Assets (%) 7.54 7.87 8.85 9.53 9.63 1.62 1.79 2.46 2.64 3.18 Dec'24 Mar'25 Jun'25 Sep'25 Dec'25 30+ (%) 98.1 97.9 96.3 96.7 96.6 96.7 96.3 95.1 95.1 95.1 Dec'24 Mar'25 Jun'25 Sep'25 Dec'25 Collections Efficiency (%)* Amount of EMI received during the month (including arrears of previous months divided by EMI demand for the current month Amount of EMI received during the month, restricted to a max of 1 EMI per loan divided by EMI demand for the current month Loans which are > 90 DPD as at the end of reporting period Loans which are <= 90 DPD as at the end of reporting period 1.25 1.94 1.46 0.880.81 11.31 9.65 12.17 12.81 9.16 Stage 2 POS Stage 3 POS 21 * Excludes demand and collections on all loans written off including loans written off during current quarter 1.41 1.59 2.24 2.45 3.12 0.21 0.20 0.22 0.19 0.06 Dec'24 Mar'25 Jun'25 Sep'25 Dec'25 2.46 1.79 2.64 3.18 1.62
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Asset Quality Indicators (2/2) Amount in ₹ Mn As at Dec 2025 As at Sep 2025 As at Dec 2024 Bucket AUM % AUM AUM % AUM AUM % AUM Current (Stage-1) 106,008 81.77% 104,920 81.67% 94,922 84.92% 1-30 (Stage-1) 7,028 5.42% 7,919 6.16% 6,620 5.92% 31-60 (Stage-2) 5,884 4.54% 5,887 4.58% 4,518 4.04% 61-90 (Stage-2) 6,602 5.09% 6,359 4.95% 3,913 3.50% 90+ (Stage-3) 4,119 3.18% 3,388 2.64% 1,808 1.62% Total 129,641 128,471 111,781 Stage 1 Assets 113,037 87.19% 112,838 87.83% 101,542 90.84% Stage 2 Assets 12,486 9.63% 12,245 9.53% 8,431 7.54% Stage 3 Assets 4,119 3.18% 3,388 2.64% 1,808 1.62% 22
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Five Star Business Finance Limited | Investor Presentation – Q3FY26ECL Provisioning Amount in ₹ Mn As of Dec 31, 2025 Stage 1 Stage 2 Stage 3 Total Loans Outstanding (Gross) 113,037 12,486 4,119 129,641 ECL Provision 235 494 1,641 2,369 Loans Outstanding (Net) 112,802 11,992 2,478 127,272 ECL Provision % 0.21% 3.95% 39.84% 1.83% As of Sep 30, 2025 Stage 1 Stage 2 Stage 3 Total Loans Outstanding (Gross) 112,838 12,245 3,388 128,471 ECL Provision 295 605 1,531 2,431 Loans Outstanding (Net) 112,543 11,640 1,857 126,040 ECL Provision % 0.26% 4.94% 45.19% 1.89% As of Dec 31, 2024 Stage 1 Stage 2 Stage 3 Total Loans Outstanding (Gross) 101,542 8,431 1,808 111,781 ECL Provision 384 562 907 1,853 Loans Outstanding (Net) 101,158 7,870 900 109,928 ECL Provision % 0.38% 6.66% 50.20% 1.66% 23
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Lag NPA Amount in ₹ Mn Q3FY2026 Q3FY2025 Q3FY2024 Q3FY2023 Loan Portfolio 129,641 111,781 89,308 62,424 Gross Stage 3 assets 4,119 1,808 1,251 907 Gross Stage 3 assets % 3.18% 1.62% 1.40% 1.45% Gross Stage 3 assets % - 1 year Lag 3.68% 2.02% 2.00% 1.90% Gross Stage 3 assets % - 2 years Lag 4.61% 2.90% 2.62% 2.25% 24
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LIABILITY & ALM
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Well-diversified Liability Franchise (1/2) Liability franchise consists of a strong set of lenders who can support the company’s plans 23 22 22 20 21 20 8 9 7 7 7 7 12 7 6 6 6 6 7 7 12 12 12 12 FY23A FY24A FY25A Q1FY26 Q2FY26 Q3FY26 Private Banks Public Banks NBFCs Others Number of lenders Select Public Sector Banks Select Private Sector Banks State Bank of India | Bank of Baroda | Union Bank of India | Indian Bank | Canara Bank | Bank of India | Bank of Maharashtra Kotak Mahindra Bank | IndusInd Bank | DBS Bank | Axis Bank | HDFC Bank | Deutsche Bank | ICICI Bank | HSBC | Yes Bank | Bandhan Bank | Federal Bank | CSB Bank | JP Morgan Chase Select Other Institutions NABARD | International Finance Corporation | Swedfund | SIDBI | Kotak MF | Nippon MF | HDFC MF | HSBC MF | Royal Sundaram GI | Bajaj Finance | Sundaram Finance | L&T Finance Lenders to the Company Long Term Credit Rating ICRA AA - Stable CARE AA - Positive India Ratings AA - Positive Short Term Credit Rating CARE A1+ The Company does not use short-term borrowing to fund its long-term assets NIL Commercial Paper exposureDiversified borrowing relationship with 45 lending partners 26
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Well-diversified Liability Franchise (2/2) Diversified borrowing mix across lender category and product category 66% 65% 62% 60% 56% 56% 58% 55% 57% 6% 12% 11% 10% 12% 17% 17% 14% 14% 5% 5% 12% 12% 11% 10% 10% 10% 9% 21% 17% 14% 18% 20% 17% 15% 20% 19% 1% 1% 1% 1% 1% 1% 1% 1% 1% Dec'23 Mar'24 Jun'24 Sep'24 Dec'24 Mar'25 Jun'25 Sep'25 Dec'25 ECB Securitisation NCD TL from Indian DFIs / Others Bank Term Loans Borrowing exposure and Cost of borrowing 11.48% 10.51% 10.12% 9.71% 9.64% FY21 FY22 FY23 FY24 FY25 10,450 11,000 4,500 10,680 4,600 9.56% 9.29% 8.59% 8.56% 8.19% 6.00% Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Incremental Borrowings (₹ Mn) Cost of incremental borrowings Cost of incremental borrowing – Last 5 quarters Borrowing cost on book – Last 5 years Borrowing cost on book – Last 5 quarters 84% 79% 74% 70% 65% 63% 64% 68% 69% Proportion of borrowings from banks* Borrowings outstanding 27* Proportion of borrowings from banks based on holdings as of the respective quarter-end 57,911 63,158 67,239 68,795 73,625 79,220 78,719 83,760 81,985 9.63% 9.63% 9.54% 9.27% 9.12% Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Cashflow Position as of Dec’25 – Cumulative No Cumulative mismatches in any of the time buckets Particulars Up to 1M 1-2 M 2-3 M 3-6 M 6M – 1Y 1-3 Y 3-5 Y >5 Y Opening Liquidity 24,197 23,748 24,155 22,930 20,332 18,586 24,629 52,955 Add: Inflows from advances 1,594 1,749 1,503 5,138 11,532 45,494 43,728 17,263 Less: Outflows on borrowings 1,275 1,318 2,761 7,663 13,193 39,015 15,212 1,496 Add: Other inflows 97 173 55 45 96 107 48 5,301 Less: Other outflows 863 196 22 119 182 543 238 74,024 Cumulative mismatch 23,748 24,155 22,930 20,332 18,586 24,629 52,955 - 28Opening Liquidity includes lien-marked FDs
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Strong Liquidity Position as of Dec’25 Amount in ₹ Mn Liquidity buffer as of Dec 2025 Unencumbered cash & cash equivalents 22,764 Unavailed sanction from banks / FIs 14,400 Total Liquidity 37,164 Projected Cashflow Schedule Q4FY26 Q1FY27 Q2FY27 Q3FY27 Opening Liquidity 37,164 39,470 39,458 41,163 Add: Principal collections & internal accruals 7,661 7,651 7,383 6,918 Less: Debt repayments 5,354 7,663 5,678 7,515 Closing Liquidity 39,470 39,458 41,163 40,566 29
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FINANCIAL STATEMENTS
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Balance Sheet Particulars (₹ Mn) Q3FY2026 Q2FY2026 Q3FY2025 Assets Cash & Cash equivalents 17,138 15,230 14,271 Bank balances other than cash & cash equivalents 4,163 7,017 3,347 Loans 127,305 126,072 112,330 - Loan portfolio 129,641 128,471 111,781 - Inter-Corporate Deposits 32 32 2,411 - Expected Credit Loss (2,369) (2,431) (1,863) Investments 2,235 2,197 2,087 Other financial assets 962 997 869 Non-Financial Assets 3,113 2,835 2,651 Total Assets 154,915 154,348 135,554 Liabilities & Equity Trade Payables 281 291 329 Debt Securities 7,699 7,945 7,722 Borrowings other than Debt Securities 74,285 75,815 65,902 Other Financial Liabilities 939 991 871 Non-Financial Liabilities 881 1,239 559 Total Equity 70,830 68,067 60,171 Total Liabilities & Equity 154,915 154,348 135,554 31
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Five Star Business Finance Limited | Investor Presentation – Q3FY26Profit & Loss Account Particulars (₹ Mn) Q3FY2026 Q3FY2025 Q2FY2026 Y-o-Y Q-o-Q 9MFY2026 9MFY2025 Y-o-Y Loan Portfolio 129,641 111,781 128,471 16% 1% 129,641 111,781 16% Interest Income (1) 7,974 7,116 7,743 12% 3% 23,372 20,321 15% - Interest on loan portfolio 7,408 6,621 7,331 12% 1% 21,875 19,080 15% - Penal Interest 48 38 60 26% (20%) 155 116 34% - Interest on Inter-Corporate Deposits 1 46 6 (98%) (83%) 7 123 (94%) - Interest on Investments 291 219 133 33% 119% 687 455 51% - Processing fee & other fees 228 193 214 18% 7% 648 547 18% Net Gain on Fair value changes (2) 76 81 151 (6%) (50%) 351 428 (18%) Fee & Other income (3) 171 113 172 53% (1%) 477 315 51% - Fee income 100 76 101 32% (1%) 289 207 40% - Recovery of Bad debts 41 23 37 86% 11% 104 70 49% - Other non-operating income 30 14 34 114% (12%) 84 38 121% Total Income (1+2+3) 8,222 7,311 8,065 12% 2% 24,199 21,063 15% Interest Expenses 1,885 1,714 1,800 10% 5% 5,558 4,927 13% Net Interest Income 6,337 5,597 6,265 13% 1% 18,641 16,136 16% Operating Expenses 2,078 1,713 1,936 21% 7% 6,025 4,905 23% Loan losses & Provisions 571 233 510 145% 12% 1,559 636 145% Profit before Tax (PBT) 3,688 3,651 3,819 1% (3%) 11,057 10,595 4% Profit after Tax (PAT) 2,770 2,739 2,861 1% (3%) 8,295 7,934 5% Other Comprehensive Income (54) (13) 69 315% (178%) (2) (14) (86%) Total Comprehensive Income 2,716 2,726 2,930 0% (7%) 8,293 7,920 5% Earnings Per Share (Basic) 9.41 9.36 9.72 28.17 27.12 Earnings Per Share (Diluted) 9.38 9.35 9.69 28.09 26.95 Book value per Share 236.95 201.29 228.85 236.95 201.29 Book value per share computed by dividing the net worth as at the end of the reporting period by the number of shares (including ungranted, unvested and vested but unexercised options and share warrants) as at the end of the reporting period. EPS is not annualised. EPS has been computed in accordance with IND AS 33 32
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Five Star Business Finance Limited | Investor Presentation – Q3FY26RoE Tree Particulars Q3FY2026 Q3FY2025 Q2FY2026 9MFY2026 9MFY2025 Interest Income (as a % of average portfolio) 23.01% 23.98% 23.20% 23.27% 24.17% Interest Expenses (as a % of average borrowings) 9.12% 9.63% 9.27% 9.30% 9.64% Net Interest Income % 13.89% 14.35% 13.93% 13.97% 14.53% Total Income (as a % of average total assets) 20.77% 21.63% 21.12% 21.17% 21.84% Interest Expense (as a % of average total assets) 4.73% 5.07% 4.71% 4.86% 5.11% Net Interest Margin % 16.04% 16.56% 16.41% 16.31% 16.73% Operating Expenses (as a % of average total assets) 5.28% 5.07% 5.07% 5.27% 5.09% Loan losses & Provisions (as a % of average total assets) 1.44% 0.69% 1.34% 1.36% 0.66% Profit before Tax (PBT) % 9.32% 10.80% 10.00% 9.67% 10.99% Tax % 2.32% 2.70% 2.51% 2.42% 2.76% Profit after Tax (PAT) or Return on average total assets 7.00% 8.10% 7.49% 7.26% 8.23% Debt / Equity 1.16 1.22 1.23 1.16 1.22 Leverage (Total assets / Net worth) 2.19 2.25 2.27 2.19 2.25 Return on Equity 15.80% 18.49% 16.91% 16.41% 18.81% Operating cost to income ratio 32.93% 30.72% 31.05% 32.47% 30.54% Credit cost to income ratio 8.99% 4.16% 8.12% 8.35% 3.93% Total Cost to income ratio 41.93% 34.87% 39.17% 40.81% 34.47% 33
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COMPANY OVERVIEW
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Our Journey 35 Incorporation Mr Lakshmipathy joins as Executive Director Starts providing secured loans for business & other purposes Exclusive focus on secured business loans First private equity infusion from Matrix Partners Inducted the first set of professionals CEO & CFO joined 1984 – 2004 INITIAL PHASE 2005 – 2015 BUILDING & STRENGTHENING PHASE Strong portfolio growth Marquee PE investments COVID impact Intense period of COVID Maintained Strong Asset quality Listing on the bourses Post COVID, back to quality growth Post COVID, back to quality growth 2015 onwards… ROBUST GROWTH PHASE 2010 6 branches; ₹0.3bn AUM Rating NA 2014 30 branches; ₹1bn AUM BB+ rating 2015 42 branches; ₹1.3bn AUM BBB- rating 2020 252 branches; ₹39bn AUM A rating 2023 373 branches; ₹69bn AUM AA- rating Dec’25 835 branches; ₹130bn AUM AA- rating 2022 300 branches; ₹51bn AUM A+ rating
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Who we are 36 Target Customer Segment Customers with informal income derived from everyday ‘services’ Ticket Size & Income Profile Average Ticket size of ₹3 – 5 lakhs Household gross income of ₹25,000 – 40,000 Target Geography Currently Southern India (TN, AP, Telangana & Karnataka), and MP, Maharashtra, UP, Chhattisgarh, Rajasthan, Gujarat Property Backed Collateral All loans are secured against borrower property – usually self occupied residential property NBFC providing secured financial solutions to Small Business customers and Self -employed Individuals who are largely cut-off from formal lending ecosystem Deep understanding of customer behavior and strong knowledge of market and regional dynamics, having been operating in this segment for over the last 2 decades Proprietary Underwriting & Collections model fine-tuned over 2 decades of experience 835 Branches 11 States / UT 491,782 Loans 13,854 Employees
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Current Shareholding 37 % holding computed on a fully diluted basis, including ungranted, unvested and vested but unexercised options and share warrants Top Institutional Investors* (ex-PE and Promoter) Investor name % stake** Fidelity Investments 7.78% HDFC MF 5.72% Nomura Asset Management 3.89% Wasatch 3.56% East Spring 3.16% Vanguard 2.61% Goldman Sachs 2.24% Kotak MF 1.86% Motilal Oswal 1.56% 360 One 1.37% * Culled from the names appearing in the Benpos received from RTA – may / may not include holdings managed in other names ** Holding through various schemes & funds including advisory mandates 18.38% 52.17% 10.26% 1.96% 4.25% 12.99% Foreign Corporates (Incudes Foreign Corporate Bodies and Foreign Portfolio Investors) Individual Promoter & Promoter GroupAIF & QIB Employees Mutual Funds Others
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Growth Opportunity & Levers (1/2) 38 Fiscal 2024E MSME Credit Gap 104 trillion 22 tnTotal Addressable Target Market Large Market Opportunity 372 bnMSME loans o/s 2%Total “Addressed” market Five Star Growth Strategy Strategy 1 – Increase branch network, add more FOS supported by robust risk management framework Average branches opened per year (excluding 2 years of COVID) – 132 branches Split branches act as a robust risk management strategy Average Business Officers added per year (excluding 2 years of COVID) – 812 officers 79 10 38 73 147 228 825 174 459 410 869 1,143 FY20 FY21 FY22 FY23 FY24 FY25 Branches added Business Officers added Strategy 2 – Increase Ticket size Average ticket size has remained almost constant over the last 4 years (excluding 2 years of COVID). Will be pushed up to factor in inflation and stronger customer selection in the coming years 0.30 0.25 0.27 0.30 0.34 0.36 FY20 FY21 FY22 FY23 FY24 FY25 Average Ticket Size (Rs mn) These 2 Strategies will lead to robust Portfolio Growth in the years to come Total households – 271 mn Business / Self- employed with SORP – 46 mn Business / Self- employed with pucca SORP – 44 mn Average ticket size of 0.5 mn TAM – 22 tn To address the large untapped market opportunity Large Market Opportunity to be served through multiple growth levers Market Opportunity estimates by CRISIL MSME loans o/s as of Sep’23 – Motilal Oswal Financial Services Research report on Five-Star Average ticket size = Disbursals / No of loans disbursed
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Growth Opportunity & Levers (2/2) 39 Growth Strategy shall be borrower led coupled with appropriate increase in ticket size 38,922 44,454 50,671 69,148 96,406 1,18,770 1,43,079 1,77,130 2,17,794 2,94,032 3,85,966 4,60,756 0.27 0.25 0.23 0.24 0.25 0.26 FY20 FY21 FY22 FY23 FY24 FY25 Loan o/s No of loans Average o/s per loan 84.22% 14.21% 13.99% 36.47% 39.42% 23.20% 96.29% 23.80% 22.96% 35.00% 31.27% 19.38% FY20 FY21 FY22 FY23 FY24 FY25 AUM growth Growth in # loans Average ticket size will be pushed up to factor in inflation and stronger customer selection Average o/s per loan has remained almost flattish COVID years where there was a conscious drop in ATS Growth has been led predominantly by increase in loans rather than increase in average ticket size of disbursals, as evidenced by the narrow gap between AUM growth and growth in number of loans
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Customer & Product 40 Customer Strategy Product Strategy Loan purpose – Loans provided for business expansion, home renovation / improvement and other mortgage purposes (marriage, education, emergency etc) Meet all requirements of the borrower household Nature of our lending – 100% backed by collateral, 95% being SORP Helps prioritize our loan during difficult times Product characteristics – Typical ticket sizes between 0.2 and 1 mn for a tenure of up to 7 years with LTV and Debt burden ratios of ~50% at the time of sanction Thin EMIs help borrowers repay the loan without undue burden Who are our customers – Small Business Owners and Self- employed individuals involved in everyday cash and carry businesses with a service bias Minimal impact of macro downcycles How & wherefrom do we source our customers – 100% in- house sourcing with a strong focus on Tier 3 to Tier 6 cities Under-penetrated market; high level of customer stickiness How are the loans given – Loans given to the family / household, leading to a collective decision-making Potential issues prevented due to collective decision-making Well thought out customer & product strategies – helps us remain insulated even during periods of stress
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Distribution 41 State-wise portfolio break-up State No of branches Q3FY26 FY25 FY24 FY23 FY22 FY21 Tamil Nadu 211 29% 29% 31% 35% 39% 41% Andhra Pradesh 274 36% 38% 37% 33% 29% 28% Telangana 120 19% 19% 19% 20% 19% 18% Karnataka 61 5% 6% 6% 7% 7% 7% Madhya Pradesh 110 8% 7% 5% 5% 5% 4% Others 59 3% 2% 1% 1% 1% 1% Total 835110 branches 35 branches 120 branches 61 branches 274 branches 211 branches 5 branches 12 branches 3 branches Deeper penetration in existing Core geographies Understanding the region in the Learning geographies Vintage No of branches Average AUM <= 1 year 109 67 1 – 3 years 360 130 3 – 5 years 107 197 5 – 7 years 101 196 > 7 years 158 220 Total 835 155 Average AUM per branch based on branch vintage Approach would be to keep the Average AUM range-bound through the Split branch strategy 835 branches | 11 States / UT Normal branches – 660; Split branches – 175 Added 35 branches during the quarter Normal branches – 27; Split branches – 8 Core geographies Other geographies 97% 3% AUM breakup Gradual growth in newer regions; significant ramp-up upon reaching the comfort state Map not to scale; Tamil Nadu numbers include Pondicherry as well 4 branches
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Cluster Strategy – Ideal Branch Structure 42 Evolution of Branch Structure at Five-Star Manage both Business & Collections Optimal # accounts per RO – helped manage risk 5-6 Relationship Officers Normal Branch Strategy Pros & Cons Ability to scale with the number of officers is limited Ability to onboard good quantum of business over a period Offered tremendous potential for scalability Add more ROs - 10-12 ROs per branch Super Branch Strategy Pros & Cons Can lead to concentration risk from AUM & people perspectives Beef up the Supervisory structure - 2 Asst BM and 1 Sr BM Helps maintain optimal # accounts per RO Helps de-risk without any material cost / headcount increase Add new branches near bigger branches when # accounts cross a certain threshold Cluster / Ideal Branch Strategy Advantages Facilitates career progression, workload management, control attrition 5-6 ROs + appropriate collections support – Other ROs moved to the new branch Move some accounts to the new branch – helps maintain optimal # accounts per RO Till FY2016 2017 – 2023 2023 till date… Constant evolution of branch structure to suit the prevalent conditions has resulted in strong business & collections momentu m
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Robust Proprietary Underwriting (1/2) 43 Difficulties in evaluating the Addressable Market Segment Lack of verifiable income stream due to absence of formal income documents Intensive on-the- ground presence needed to carry out physical inspections Nil or negligible credit history of the borrowers Need for a nuanced & proprietary approach to underwriting Not so well- established credit discipline due to move from informal to formal ecosystem Complex collateral assessment – ecosystem checks are needed Not so entrenched banking habits which could have an impact on collections Five Star’s capabilities Credit appraisal of informal income with minimum documentation; Surrogates (lifestyle, ownership of assets, trade checks, etc) used to evaluate borrower cashflows, in the absence of verifiable income documents ‘On the ground’ presence - ability to conduct physical verifications – mechanism has been created to ensure maker-checker controls in inspection process and operate at scale Ability to utilize ecosystem checks as proxies for formal records in databases Five Star operates profitably with strong portfolio quality (in the company’s customer segment) by carefully selecting customers that ‘fit’ its assessment capabilities Underwriting strategy fine-tuned over years of experience – to serve a “not so easy to underwrite TAM”
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Robust Proprietary Underwriting (2/2) 44 Multiple levels of appraisal – Final sanction can be provided only by the Independent Credit team Pre-login assessment by the branch – Basic verification of business, residence and background check on borrower Relationship Officer Inspection – Visit to applicant’s business / residence to assess business traction / income level through proxies Final assessment by Branch Manager – Complete inspection undertaken across the 3 Cs – Character, Cashflow and Collateral and report submitted to the approval team Branch Appraisal Field Credit Inspection – Independent visit to applicants’ residence and business for detailed inspection; independent report submitted to the approval team Approval Credit – Loan sanctioned / rejected basis branch appraisal and field credit appraisal reports. Only team with approval powers Legal Appraisal – Validation of the property documents done by Internal and External legal counsels Credit Appraisal Inherent Controls Focus on Service oriented businesses • Last impacted by macro down-cycles and first to emerge from them Loans to the family / household • Ensures collective decision-making and avoids potential problems Independent verification & approval • Approval powers only with the Credit team; no approval powers even with the Chief Business Officer Registered Mortgage • Mortgage on the collateral registered with the Sub- registrar office; helps avoid multiple loans against the same property
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Strong on-ground Collections infrastructure (1/2) 45 First-time business loan borrowers migrating from informal to formal ecosystem necessitates multiple touchpoints Branch Collections Support Head Office Management Relationship Officers Branch Manager On-ground team Supported by Legal Support Supervisory Head Office team Loans at 1 – 30 DPD Relationship Officers Loans at 31 – 60 DPD Branch Collections Support, Branch Manager, Supervisory Loans at 61 – 90 DPD Branch Collections Support, Branch Manager, Supervisory + Head Office Management NPA loans Legal Recovery team (if recovery has not happened) Typical Recovery Process at Five Star – Parties involved Concerted efforts, along with necessary legal measures, ensure strong recovery and robust asset quality
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Strong on-ground Collections infrastructure (2/2) 46 Focus on Unique Customer Collections Efficiency has contributed to significant improvement in portfolio profile Continuous evolution in Collections Strategy has contributed to continuous strengthening of the portfolio profile 74.17% 76.26% 71.93% 83.51% 87.39% 84.28% FY20 FY21 FY22 FY23 FY24 FY25 11.82% 12.36% 16.78% 10.50% 7.89% 9.65% FY20 FY21 FY22 FY23 FY24 FY25 Current Portfolio 30+ Portfolio Overall Portfolio Profile FY20 FY21 FY22 FY23 FY24 FY25 Stage 1 88.18% 87.64% 83.22% 89.50% 92.11% 90.35% Stage 2 10.45% 11.34% 15.73% 9.15% 6.51% 7.87% Stage 3 1.37% 1.02% 1.05% 1.35% 1.38% 1.79% Increase in FY25 on account of industry-wide issues faced by all the players
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Technology Strategy (1/3) 47 Robust investments in technology to efficiently manage the lending process, increase productivity and decrease costs From FY2023 FY2017 – FY2022 Looking Ahead Till FY2017 ▪ Manual underwriting process with minimal technology involvement ▪ API infrastructure to leverage strengths of third-party service providers / fintechs ▪ Data analytics and machine learning ▪ Robust Customer Credit Scoring model ▪ Continue to improve the tech stack by brining in stronger applications to support the growth strategy ▪ Moved to Finn One Neo (ERP solution) with automated workflow and rule engine configuration ▪ Moved to a completely paperless underwriting model with all data available on cloud ▪ Significant investments in technology during this period ▪ Strengthened senior management team for IT and significantly augmented the team ▪ Significant IT spends during the last few years ▪ Complete data on cloud along with Saas models for applications ▪ Focus on strategic projects and leveraging benefits from their implementation - Loan Origination System (Salesforce), General Ledger (Oracle), HRMS, Treasury system, Collections Module and Customer Scoring Model
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Technology Strategy (2/3) 48 Comprehensive Tech stack to derive productivity and efficiency benefits Loan Origination & Underwriting Customer Self Service App Salesforce Field verification App Loan Origination System Document Management System Enterprise API Integration Layer ML Models Enterprise Data Lake & Reporting Platform Reporting / MIS Credit Bureau KYC Validations CERSAI / CKYC Aadhar E-KYC APIs for Loan Management Personalized QR based payments Bharat Bill Pay System (BBPS) UPI Auto-pay Treasury System Loan Servicing & Support Systems Loan Management System Collections platform General Ledger HRMS System
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Technology Strategy (3/3) 49 Focused tech strategy / stack have helped achieved key benefits across functional verticals Loan Origination ▪ Consistently improving TAT ▪ Increase in quantum and improved reliability of data collected ▪ Ability to collect data available with third-party service providers, through APIs Credit Underwriting ▪ Fully rounded view of the borrower income, collateral value, title, income proxies available to process & approval credit at one place ▪ System led automated exception reporting - All deviation approvals captured in the system helping minimize risk of manual override 12 10 9 8 9 9 FY23 FY24 FY25 Q1FY26 Q2FY26 Q3FY26 TAT (Days) 28% 24% 20% 19% 18% 17% 72% 76% 80% 81% 82% 83% Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Cash Non-Cash Proportion of cash collections showing a consistently declining trend Collections ▪ Move from cash to digital means of collections ▪ All modes of collections made available to the borrowers – NACH, BBPS, UPI Auto-pay, etc ▪ Efficient cash handling with complete traceability Risk Management & Audit ▪ Effective monitoring and portfolio management of large volume underwriting process ▪ System driven risk metrics without manual override ▪ Complete maker-checker process and audit trails to fix accountability TAT represents days between login & sanction Expect to operate around 8-9 days of TAT in a steady state scenario Aim to gradually keep reducing the proportion of cash in the coming quarters
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Risk Management & Audit (1/2) 50 Robust Risk Management and Risk-based Internal Audit Framework ensure strong oversight Board of Directors Risk Management Committee Audit Committee ALCO (Liquidity & ALM risks) Credit Committee (Large ticket sanctions) Business Resource Committee (Fund-raise) Statutory Audit (Deloitte Haskins & Sells) External Internal Audit (Sundaram & Srinivasan) Internal Internal Audit (In-house Audit team) Functional Departments Risk Management Department Functional Departments Financial Reporting & Accounting Chief Compliance Officer + Compliance Department
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Risk Management & Audit (2/2) 51 Robust Risk Management and Risk-based Internal Audit Framework ensure strong oversight Risk Management Framework Financial Risk Monitored by Audit Committee Liquidity Risk Monitored by ALCO; Stress tests conducted under ICAAP methodology and reviewed by the Board annually Operational Risk Monitored by Audit Committee as part of Audit / ICFR process Technology Risk Monitored by IT Strategy Committee / IT Steering Committee / Information Security Committee HR / Attrition Risk Monitored by Risk Management Committee Credit / Collateral / Portfolio Risk Monitored by Risk Management Committee Fraud Risk Monitored by Audit Committee as part of Audit / ICFR process Risk based Internal Audit Framework +Determined based on possible financial impact, reputational or compliance issues Magnitude of Risk Determined based on internal controls, past occurrences, nature of process Frequency of Risk High Frequency Medium Frequency Low Frequency High Magnitude of risk Quarterly testing Quarterly testing Half-yearly testing Medium Magnitude of risk Quarterly testing Half-yearly testing Annual testing Low Magnitude of risk Half-yearly testing Annual testing Annual testing Strong framework laid down based on the twin principles of: Clean Track Record | No Auditor Qualifications | Multiple RBI Inspections with NIL divergences | Fully automated Compliance tracking ICFR – Internal Control over Financial Reporting
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26ESG @ Five Star (1/5) 52 External Reporting Implementation Process Comprehensive Policy & Governance of ESG ESG @ Five Star primarily revolves around the aspects of “S” (Social impact) and “G” (Governance) Comprehensive ESG and BRSR policies approved by the Board at least on an annual basis Senior Management team has been tasked to oversee the implementation Business Responsibility and Sustainability Report (BRSR) is published as part of the Annual Report
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26ESG @ Five Star (2/5) 53 Social Impact Indicators – Financial Inclusion (“Reaching the Unreached”) Mission Statement Provide appropriate credit solutions to the hitherto unreached segment of the market by developing a niche underwriting model, built towards evaluating the twin strengths of the borrowers’ intention to repay and ability to repay, with the ultimate objectives of increasing customer satisfaction and maximizing stakeholder returns Company Vision Reaching the Unreached through suitable credit solutions ▪ Caters to the underserved market of small business loans ▪ Meets demand which is majorly catered by informal sources ▪ Employment opportunities in semi- urban and rural areas ▪ Focus on hiring local talent Financial Inclusion ▪ Majority of AUM is provided to Low- income group customers, thereby fostering financial inclusion ▪ Loans for business and other purposes are provided at lower interest rates Catering to LIG customers ▪ Significant spends are made towards CSR ▪ CSR objectives are tailored towards improving education, healthcare and livelihood ▪ Right implementation partners are onboarded, and a strong monitoring mechanism is in place to ensure proper utilisation of funds Corporate Social Responsibility Low-income group means households with earnings of ₹ 25,000 or lesser
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26ESG @ Five Star (3/5) 54 Social Impact Indicators – Branch Presence Branch Presence • Significant branch presence in Tier 3 to Tier 6 towns Customers ignored by banks / larger FIs Lending for business purposes • Low-income borrowers • Customers with strong incomes from everyday services but lacking the documentary evidence of such incomes • Fully Collateralised loan • Predominant portion of lending towards business purposes (income generation) • Displace unorganised institutions (money lenders) – First time borrowers to formal lending 0% 2% 8% 16% 26% 48% Tier1 Tier2 Tier3 Tier4 Tier5 Tier6 Significant Branch presence in Tier 3 to Tier 6 towns - semi-urban and fast-growing rural geographies Tier 6 – Population < 50K; Tier 5 – Population 50K – 1L; Tier4 – Population 1L – 2L; Tier 3 – Population 2L – 10L; Tier 2 – Population 10L – 50L; Tier 1 – Population > 50L
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26ESG @ Five Star (4/5) 55 Strong Governance Framework Board Committees Management Committees Asset – Liability Committee Credit Committee Grievance Redressal Committee IT Steering Committee Information Security Committee Audit Committee Risk Management Committee Nomination & Remuneration Committee IT Strategy Committee Stakeholder Relationship Committee Corporate Social Responsibility Committee Business & Resource Committee Chaired by Independent Directors Chaired by Other Directors High Independent Director representation | Varied level of Independent Director experience | High level of Independent Director participation in Committees | Most Board Committees chaired by Independent Directors Customer Service Committee Board of Directors 1 Promoter Director 1 Executive Director 4 Independent Directors (including 1 Woman Director) 1 Non-Executive Director
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26ESG @ Five Star (5/5) 56 The Board of Directors helps improve Corporate visibility, image and governance and provides strong comfort to external stakeholders. The Board also helps in ensuring robust risk management strategies and provides independent oversight in the Organisation. The Company has also implemented the following Policies (approved by the Board, at least annually) to promote ethical, transparent and responsible behaviour and to fix accountability: Robust Corporate Governance supported by Board approved Policies Code of conduct for the Board of directors and Senior Management personnel (Link) Guidelines on Corporate Governance (Link) Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (Link) Grievance Redressal Policy (Link) Know Your Customer (KYC) and Anti Money Laundering Policy (Link) Fair Practice Code (Link) Policy on Prevention of Sexual Harassment (Link) Whistle Blower policy & Vigil mechanism (Link) Business Responsibility and Sustainability Reporting policy (Link)
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Five-Star Business Finance Limited | Investor Presentation – Q3FY26Strong Human Capital 57 Strong & adequate Human Capital for the size and scale of operations Function No of employees Business & Collections 10,151 - Relationship Officers 8,181 - Branch Managers 1,904 Supervisors 210 Credit 1,159 - Field Credit 798 - Approval Credit 318 - Credit Support 43 Operations 1,247 - Operations Officers 1,079 - Head Office team 168 Accounts 680 - Cashiers 621 - Head Office team 59 Legal & MOD 252 IA & Customer Care 66 Technology 54 Human Resources 46 Administration 20 Others 14 Heads of Departments 11 Senior Management 10 Total Headcount 13,854 97% 3% Proportion of Headcount – Branch vs HO Branch HO Predominantly branch-led headcount, which helps in improved productivity, quality & profitability Strong Supervisory layer (across branch and other support functions) to maintain strong control processes and ensure maker-checker mechanism Support functions also staffed adequately to ensure robust controls in each of the processes Management team consists of professionals with relevant experience and expertise to carry out their functional responsibilities
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Five Star Business Finance Limited | Investor Presentation – Q3FY26 Thank You For further information, you may please email to: ir@fivestargroup.in