Slides
Page 1
Five-Star Business Finance Limited Onwards & Upwards Reaching the Unreached Investor Presentation | Q1FY2027
Page 2
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Safe Harbour 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.
Page 3
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Executive Summary | Q1FY27 856 Branches +12 +89 ₹ 14,964 Mn Loan Disbursement ₹ 137,218 Mn Loan Portfolio 3.46% Gross NPA 12.38% 30+ DPD ₹ 2,714 Mn Profit After Tax 19.97% Net Interest Margin* 8.11% Return on Average AUM 14.46% Return on Equity +23% +16% +4% +10% +9 bps +1.00% -31 bps +1.07% +1% +2% -10 bps -2 bps -26 bps -69 bps -63 bps -2.11% * NIM computed as a % of average AUMq-o-q y-o-y
Page 4
It is with great delight that I present the performance of Five-Star Business Finance Limited (“Five Star” or “Company”) for the quarter ended June 30, 2026. The quarter panned out in line with our expectations, which vindicated the actions we undertook to overcome the challenges we faced. The most heartening facet of this quarter is the strong traction in disbursements that we achieved. We clocked our historical best in disbursements with quarterly disbursements coming in at INR 14,964 Mn, a growth of 23% over the previous quarter and 16% over the previous year. We ended the quarter with an AUM of INR 137,218 Mn, which is a sequential growth of 4% for the quarter. This clearly shows that Five Star is back on the growth trajectory and at this pace of quarterly growth (which will only improve in the coming quarters), we should be able to achieve our full year growth guidance very comfortably. Collections continue to remain robust despite this being the seasonally weakest quarter; for the quarter ended June 30, 2026, we clocked a unique customer collection efficiency (excluding NPA loans) of 97.9% (98.1% in Q4FY26), with our x-bucket collections coming in at 99.2% (99.3% in Q4FY26). Our current book continues to improve and stood at 83.30% as compared to 82.69% as of the previous quarter. We also saw a good improvement in our 30+ 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 (defined as increase in NPAs + write offs as a % of the opening standard AUM) remained flat at 0.70% compared to the previous quarter, and despite the seasonally weak nature of the quarter, our credit cost dropped sequentially to 1.85% for Q1FY27 from 1.88% for Q4FY26. On the borrowings front, we borrowed INR 4,500 Mn at an all-inclusive cost of 8.33%, despite not so favourable liquidity conditions. This has also helped bring down our COF on the book from 8.95% for Q4FY26 to 8.80% for Q1FY27. Not only did this ensure our spreads to remain intact (despite drop in yields) but it also shows the strength of the franchise from the perspective of external stakeholders. 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. Investor Presentation | Q1FY27 | Five Star Business Finance Limited Commentary on Q1FY27 Lakshmipathy D Managing Director
Page 5
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Who We are 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 856 Branches 11 States / UT 502,884 Loans 14,497 Employees
Page 6
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Our Journey 263 1,008 1,315 1,981 4,936 10,084 21,128 38,922 44,454 50,671 69,148 96,406 1,18,770 1,32,246 1,37,218 1984 2004 2010 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Q1FY27 Assets Under Management Incorporation Introduction of Secured loans for business & other purposes First PE infusion Series A Matrix Partners CEO & CFO joined the Company Strong portfolio growth; Marquee PE investments; COVID impact Intense period of COVID; Maintained Strong Asset quality Listed on the bourses; back to strong growth AUM crosses INR 100 bn Series B Morgan Stanley Series C Norwest, Sequoia Series D TPG Series E KKR AUM crosses INR 75 bn ₹ 137,218 Mn Assets Under Management 2012 BB+ 2014 BBB- 2016 BBB / BBB+ 2017 A- 2018 A 2021 A+ 2023 AA- ICRA / CARE Ratings ICRA / CARE Ratings / India Ratings CRISIL
Page 7
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Shareholding – June 30, 2026 18.39% 43.43% 17.61% 1.91% 4.48% 14.19% Foreign Corporates (Incudes Foreign Corporate Bodies and Foreign Portfolio Investors) Promoter & Promoter Group AIF & QIB Employees Mutual Funds Others Strong Promoter Holding Well-diversified cap table with strong participation from FIIs and Mutual Funds All Management team members hold shares / options amounting to ~2% of the Company’s capital % holding computed on a fully diluted basis, including ungranted, unvested and vested but unexercised options
Page 8
Investor Presentation | Q1FY27 | Five Star Business Finance Limited What We do Small Business Owners and Self-employed individuals involved in everyday cash and carry businesses with a service bias Need funds to refinance borrowings from unorganised sources, which were originally taken to set up businesses Need funds for other purposes such as business expansion, home renovation / improvement and other mortgage purposes (marriage, education, emergency etc) Who are our Customers Given minimal banking habits, traditional underwriting methods are inadequate to establish the income stream Inability to provide documentation required by traditional lenders Lack of credit bureau footprint makes it necessary to carry out ecosystem checks Expensive & time consuming underwriting process What are the challenges 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 Proprietary underwriting model developed to utilise ecosystem checks (neighbourhood / trade checks) as proxies for formal records ‘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 Fully in-house underwriting model done by qualified, competent & well-trained staff Five Star’s Capabilities
Page 9
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Distribution 111 branches 50 branches 120 branches 61 branches 276 branches 214 branches 5 branches 12 branches 3 branches 856 branches | 11 States / UT 12 branches opened during the quarter State-wise portfolio break-up State Branches Q1FY27 FY26 FY25 FY24 FY23 FY22 Tamil Nadu 214 28% 28% 29% 31% 35% 39% Andhra Pradesh 276 36% 36% 38% 37% 33% 29% Telangana 120 19% 19% 19% 19% 20% 19% Karnataka 61 5% 5% 6% 6% 7% 7% Madhya Pradesh 111 9% 9% 7% 5% 5% 5% Maharashtra 50 3% 2% 1% 1% 1% 1% Others 24 1% 1% 0% 0% 0% 0% Total 856 4 branches Strong distribution network driven by contiguous branch expansion Tamil Nadu includes branches and portfolio from the union territory of Puducherry
Page 10
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Proprietary Underwriting 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 level inspection 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 Service-oriented businesses Last impacted by macro down-cycles and first to emerge back Loans to family / household Ensures collective decision-making and avoids potential problems Independent approval Approval powers only with the Credit team; no approval powers with the Business team Registered Mortgage Mortgage registered with the Sub- registrar office; helps avoid multiple loans against the same property Risk Mitigants
Page 11
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Strong Tech Support Robust Loan Origination System A seamless LOS that integrates with banks, bureaus, account aggregators, and data providers to streamline loan processing Secure API Ecosystem Multiple, high-security API integrations that automate the capture of high-fidelity data across all touchpoints Scalable Cloud Architecture A resilient, secure, and highly scalable cloud infrastructure designed for 24/7 availability Data-Driven Risk Analytics A solid data lake foundation that powers advanced ML models to deliver precise predictive behavior and risk scoring Strategic Digital Collections Tech-enabled collections utilizing strategy builder integrations to maximize recovery efficiency and performance Tech supported Business Model TAT is a function of the time needed to carry out necessary ecosystem checks combined with tech led efficiencies to sanction the loans faster 65% 72% 76% 80% 81% 82% 83% 84% 86% Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Proportion of Digital Collections 12 10 9 8 9 9 8 8 FY23 FY24 FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Turnaround Time (# days) Tech led strong digital adoption leading to a significant proportion of digital collections even amongst small shopkeepers / earn & pay customers
Page 12
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Holistic Technology Usage Application Stack Tech Infra Analytics ML / AI Digital Loan Origination Digital journey from lead login to automated disbursal, eliminating manual friction. Real-time connectivity with Credit Bureaus, Account Aggregators, Banks, and third-party data providers for instant verification. Augmented Human-in-the-Loop Optimizing critical touchpoints by digitalizing physical field visits, with mobile-first approach for real-time data capture during client interactions. Strategic Digital Collections Leveraging a mix of real-time (Push) and scheduled (Pull) digital channels to facilitate seamless EMI payments. Collaborating with specialized collection tech-partners to optimize channel strategies and maximize recoveries. Cloud-Native Foundation Resilient Cloud Infrastructure Hosted on a leading global cloud provider to ensure high availability, elastic scalability, and high-performance throughput Best-of-Breed Product Stack Leveraging industry-leading SaaS & platform solutions to ensure stability, scalability and regulatory compliance. Deep integration between core platforms to maintain a unified data flow across the lending lifecycle 24x7 Security Operations Center Deployment of a Security Operations Center providing 24x7 surveillance across the entire digital perimeter. Continuous monitoring of cloud environments to prevent unauthorized access or misconfigurations. Real-time threat detection and mitigation at the network and application layers to safeguard against zero-day vulnerabilities. Unified Data Foundation Comprehensive Data Lake A centralized repository designed to ingest and organize structured and unstructured data from a heterogeneous landscape of sources AI/ML Analytical Models Proprietary Machine Learning models tailored for Credit Risk Scoring to augment the underwriting process. Partner assisted models for Bounce Prediction Analytics to leverage technology for automated collections and support field collection officers to improve efficiency and productivity AI Enablement Intelligent Document Processing through GenAI-driven extraction to automate data capture and improve data quality and accuracy AI Voice Bots GenAI-enabled bots deployed in local languages for automated collections Voice to Data Conversion using GenAI Working with specialized product platforms to convert voice conversations with customers and field staff, in local languages, into actionable data
Page 13
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Strong Risk & Audit Oversight Board of Directors Risk Management Committee Audit Committee Risks managed – Credit, Collateral, Portfolio & People risks Risks managed – Financial, Operational & Fraud risks Liquidity & ALM risk Credit risk Liquidity risk Financial, Operational & Fraud risks Clean Track Record | No Auditor Qualifications | Multiple RBI Inspections with NIL divergences | Fully automated Compliance tracking 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 Accounting & Reporting Chief Compliance Officer & Compliance Department
Page 14
Investor Presentation | Q1FY27 | Five Star Business Finance Limited ESG @ Five Star Comprehensive Policy & Governance of ESG Comprehensive ESG and BRSR policies approved by the Board at least on an annual basis External Reporting Business Responsibility and Sustainability Report (BRSR) is published as part of the Annual Report BRSR Assurance Reasonable assurance has been carried out by an independent assurance partner certifying BRSR compliance Implementation Process Senior Management team has been tasked to oversee the implementation ESG @ Five Star ESG @ Five Star primarily revolves around the aspects of “S” (Social impact) and “G” (Governance)
Page 15
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Social Impact Indicators Company Vision Reaching the Unreached through suitable credit solutions 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 ▪ 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, since the focus is 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 Financial Inclusion – Reaching the Unreached
Page 16
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Social Impact Indicators 0% 2% 8% 16% 26% 48% Tier1 Tier2 Tier3 Tier4 Tier5 Tier6 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 Significant branch presence in Tier 3 to Tier 6 towns Branch Presence ▪ Low-income borrowers ▪ Customers with strong incomes from everyday services but lacking the documentary evidence of such incomes ▪ Fully Collateralized loan Customers ignored by banks / larger FIs ▪ Predominant portion of lending towards business purposes (income generation) ▪ Displace unorganized institutions (money lenders) – First time borrowers to formal lending Lending for Business Purposes ▪ The Company has raised funds from domestic DFIs and multi- lateral agencies to support women borrowers, facilitate social impact, etc Sustainable Finance ▪ USD 20 Mn raised from Swedfund, to provide funding to small business owners ▪ USD 60 Mn raised from International Finance Corporation, to provide funding to micro- entrepreneurs and self-employed individuals with women being the primary borrowers ▪ USD 100 Mn raised from Asian Development Bank, to provide funding to lower- income group women borrowers ▪ Availed refinance from NABARD and SIDBI for funding provided to small business owners
Page 17
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Governance Framework Strong Governance Framework Board of Directors Board Committees Audit Committee Risk Management Committee Nomination & Remuneration Committee IT Strategy Committee Stakeholder Relationship Committee CSR Committee Business & Resource Committee Customer Service Committee Asset – Liability Committee Credit Committee Grievance Redressal Committee IT Steering Committee Information Security Committee Management Committees • High Independent Director representation • Independent Directors with diverse experience • High level of Independent Director participation in Committees • Most Board Committees chaired by Independent Directors 1 Promoter Director 4 Independent Directors (including 1 Woman Director) 1 Executive Director 1 Non-Executive Director Chaired by Independent Directors Chaired by Other Directors
Page 18
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Distinguished Board Lakshmipathy Deenadayalan Chairman & Managing Director Anand Raghavan* Independent Director Chair – Audit Committee T T Srinivasaraghavan Independent Director Chair – RMC Ramkumar Ramamoorthy Independent Director Chair – IT Strategy Committee Rajeshwari S Independent Director Sreeram Iyer** Independent Director Thirulokchand Vasan Non-Executive Director * Will cease to be a Director upon completion of 10-year term w.e.f July 27, 2026 ** Appointed as Additional Director w.e.f July 25, 2026 Srikanth Gopalakrishnan Joint MD & CFO
Page 19
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Strong Management Team Vishnuram J Chief Operating Officer Vanamali Sridharan Chief Technology Officer Sai Suryanarayana Chief People Officer Ramesh Kannah Chief Legal Officer Prashanth S Chief - Treasury & IR Parthasarathy S Chief Credit Officer Jayaraman S Chief Risk Officer Srikanth G JMD & CFO Lakshmipathy D Managing Director Vijayaraghavan Chief Compliance Officer
Page 20
Strong Management Team Murali Krishnan Head – Business & Collections Seshathri S M Head – Credit Daniel Wilson Head – Operations Umar Farooq Head – Legal Sridharan Vembu Head – Technology Delivery Sreenivas K Head – Finance Shylasree P Head – Administration Arun Kumar K Head – Accounts Vinay Kumar C Head – Internal Audit Vignesh Kumar S M Company Secretary Srikanth Menon Head - Compliance Investor Presentation | Q1FY27 | Five Star Business Finance Limited
Page 21
Investor Presentation | Q1FY27 | Five Star Business Finance Limited 10-Year Financial Snapshot Particulars (₹ Mn) FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Number of branches 103 130 173 252 262 299 373 520 748 844 Loan disbursals 3,830 7,072 14,822 24,087 12,450 17,562 33,914 48,814 49,697 46,757 AUM 4,936 10,084 21,128 38,922 44,454 50,671 69,148 96,406 118,770 132,246 Number of employees 737 1,290 1,971 3,734 3,938 5,675 7,347 9,327 11,934 14,159 Financial Information (₹ Mn) I-GAAP I-GAAP IND-AS IND-AS IND-AS IND-AS IND-AS IND-AS IND-AS IND-AS Total Income 871 2,082 4,089 7,873 10,513 12,562 15,289 21,951 28,660 32,460 Interest expenses 238 578 769 2,156 3,261 2,984 2,636 4,653 6,635 7,372 Net Interest Income (NII) 633 1,504 3,320 5,717 7,252 9,578 12,653 17,298 22,025 25,088 Operating Expenses 293 625 1,060 1,731 2,136 3,081 4,405 5,585 6,830 8,297 Loan losses & Provisions 28 93 76 493 352 455 201 554 890 2,163 Profit Before Tax (PBT) 312 786 2,184 3,493 4,764 6,042 8,047 11,159 14,306 14,628 Profit After Tax (PAT) 196 558 1,567 2,620 3,589 4,535 6,035 8,359 10,725 10,988 Ratios I-GAAP I-GAAP IND-AS IND-AS IND-AS IND-AS IND-AS IND-AS IND-AS IND-AS Cost to Income (including credit cost) 50.79% 47.74% 34.22% 38.90% 34.31% 36.92% 36.40% 35.49% 35.05% 41.82% Cost to Income (ex-credit cost) 46.31% 41.54% 31.94% 30.06% 29.28% 32.17% 34.82% 32.29% 31.01% 33.21% Return on Average AUM 6.47% 7.97% 10.42% 9.12% 8.99% 9.67% 10.42% 10.18% 9.96% 8.68% Return on Equity 12.40% 12.97% 15.14% 15.36% 16.85% 13.85% 15.03% 17.60% 18.68% 16.06% Gross Stage 3 assets 2.47% 1.43% 0.89% 1.37% 1.02% 1.05% 1.36% 1.38% 1.79% 3.37% Net Stage 3 assets 2.08% 0.95% 0.68% 1.13% 0.84% 0.68% 0.69% 0.63% 0.88% 2.00% Provision Coverage Ratio - overall AUM 0.79% 0.97% 0.80% 1.58% 1.95% 2.03% 1.61% 1.64% 1.63% 1.84% Provision Coverage Ratio - Stage 3 16.24% 33.89% 22.99% 17.67% 17.92% 34.91% 49.33% 54.27% 51.31% 41.40% CRAR 43.78% 58.82% 64.09% 52.94% 58.86% 75.20% 67.17% 50.50% 50.10% 51.89% Debt / Equity ratio 2.04 0.92 0.70 1.22 1.48 0.69 0.98 1.22 1.26 1.11
Page 22
Business Updates
Page 23
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Loan Book & Disbursements 12,901 11,959 9,764 12,133 14,964 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Loan Disbursement – Last 5 qtrs. (₹Mn) Loan Portfolio – Last 5 qtrs. (₹Mn) 17,562 33,914 48,814 49,697 46,757 FY22 FY23 FY24 FY25 FY26 1,24,578 1,28,471 1,29,641 1,32,246 1,37,218 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 50,671 69,148 96,406 1,18,770 1,32,246 FY22 FY23 FY24 FY25 FY26 Loan Disbursement – Last 5 years (₹Mn) Loan Portfolio – Last 5 years (₹Mn) Y-o-Y Growth – 10% Q-o-Q Growth – 4% Last 5-year CAGR ~24%
Page 24
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Financial Highlights 7,912 8,065 8,222 8,261 8,387 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Total Income – Last 5 qtrs. (₹Mn) Profit Before Tax – Last 5 qtrs. (₹Mn) 3,550 3,819 3,688 3,571 3,620 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 2,663 2,861 2,770 2,693 2,714 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Net Interest Income – Last 5 qtrs. (₹Mn) Profit After Tax – Last 5 qtrs. (₹Mn) Net interest income = Total Income less Interest expenses 6,039 6,265 6,337 6,447 6,672 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27
Page 25
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Competitive Spreads 23.51% 23.20% 23.01% 22.58% 22.46% 9.54% 9.27% 9.12% 8.95% 8.80% Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 24.05% 24.23% 24.27% 24.03% 23.10% 10.51% 10.12% 9.71% 9.64% 9.21% 8.0 0% 9.0 0% 10 .00 % 11 .00 % 12 .00 % 13 .00 % 14 .00 % FY22 FY23 FY24 FY25 FY26 13.54% 14.11% 14.56% 14.39% 13.89% FY22 FY23 FY24 FY25 FY26 13.97% 13.93% 13.89% 13.63% 13.66% Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Portfolio Yield Cost of borrowing Spread
Page 26
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Well-Diversified Portfolio AP TN KA TS MP MH OTH Low Concentration risk Focus on Tier 3 to Tier 6 towns Diversified across ticket size bands Sizeable Vintage Portfolio <=3L 3-5L 5-10L >10L Tier 1 & 2 Tier 3 Tier 4 Tier 5 Tier 6 15% 30% 47% 7%1% <1Y 1-3Y 3-5Y >5Y 36% 28% 1% 19% 5% 9% 3% 27% 51% 20% 2% 34% 14% 49% Tier 3 to Tier 6 are the primary catchment areas 3% Jun’26 Mar’26 Jun’25 Up to 3L 27% 28% 31% 3-5L 51% 52% 53% >5L 22% 20% 16% Focus on building a diversified portfolio across ticket sizes
Page 27
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Asset Quality Indicators PCR on GNPA (%) PCR on Overall AUM (%) 1.94 1.89 1.83 1.84 1.78 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 50.02 45.19 39.84 41.40 40.14 30.0 0 35.0 0 40.0 0 45.0 0 50.0 0 55.0 0 60.0 0 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Gross NPA (%) 2.46 2.64 3.18 3.37 3.46 - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Net NPA (%) 1.25 1.46 1.94 2.00 2.10 - 0.50 1.00 1.50 2.00 2.50 3.00 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27
Page 28
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Asset Quality Indicators Credit Cost to Average AUM (%) 1.58 1.60 1.76 1.88 1.85 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 17.56 18.33 18.23 17.31 16.70 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 1+ DPD (%) 8.85 9.53 9.63 9.31 8.92 2.46 2.64 3.18 3.37 3.46 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 30+ DPD (%) Stage 2 POS Stage 3 POS 11.31% 12.38%12.81% 12.69%12.17% 0.81 0.67 1.09 0.70 0.70 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Slippage Ratio (%) Computed as increase in GNPA + write offs for the quarter as a % of quarter opening Standard assets (not annualised)
Page 29
Investor Presentation | Q1FY27 | Five Star Business Finance Limited ECL Provisioning As of June 30, 2026 (₹Mn) Stage 1 Stage 2 Stage 3 Total Loans Outstanding (Gross) 1,20,223 12,243 4,752 1,37,218 ECL Provision 162 373 1,907 2,443 Loans Outstanding (Net) 1,20,061 11,870 2,845 1,34,776 ECL Provision % 0.14% 3.05% 40.14% 1.78% As of Mar 31, 2026 (₹Mn) Stage 1 Stage 2 Stage 3 Total Loans Outstanding (Gross) 115,468 12,317 4,461 132,246 ECL Provision 158 427 1,847 2,432 Loans Outstanding (Net) 115,310 11,890 2,614 129,814 ECL Provision % 0.14% 3.46% 41.40% 1.84% As of June 30, 2025 (₹Mn) Stage 1 Stage 2 Stage 3 Total Loans Outstanding (Gross) 110,487 11,021 3,070 124,578 ECL Provision 319 557 1,536 2,411 Loans Outstanding (Net) 110,168 10,464 1,535 122,167 ECL Provision % 0.29% 5.05% 50.02% 1.94%
Page 30
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Liability Franchise 62% 60% 56% 56% 58% 55% 57% 53% 57% 11% 10% 12% 17% 17% 14% 14% 15% 14% 12% 12% 11% 10% 10% 10% 9% 10% 7% 14% 18% 20% 17% 15% 20% 19% 17% 15% 1% 1% 1% 1% 1% 1% 1% 6% 7% Jun'24 Sep'24 Dec'24 Mar'25 Jun'25 Sep'25 Dec'25 Mar'26 Jun'26 Bank Term Loans TL from Indian DFIs / Others NCD Securitisation ECB State Bank of India | Bank of Baroda | Union Bank of India | Indian Bank | Bank of Maharashtra Select PSU lenders Select Private bank lenders Kotak Mahindra Bank | IndusInd Bank | DBS Bank | Axis Bank | Deutsche Bank | ICICI Bank | HSBC | Yes Bank | Bandhan Bank | Federal Bank | CSB Bank | JP Morgan Chase Select Other Institutions International Finance Corporation | Asian Development Bank | Swedfund | NABARD | SIDBI | Kotak MF | Nippon MF | HDFC MF | HSBC MF | Royal Sundaram GI | Bajaj Finance | Sundaram Finance | L&T Finance Long Term Credit Rating ICRA AA - Stable CARE AA - Positive India Ratings AA - Positive Short Term Credit Rating CARE A1+
Page 31
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Liability Franchise 10.51% 10.12% 9.71% 9.64% 9.21% FY22 FY23 FY24 FY25 FY26 4,500 10,680 4,600 9,283 4,500 8.59% 8.56% 8.19% 8.53% 8.33% 6.0 0% Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Incremental Borrowings (₹ Mn) Cost of incremental borrowings Proportion of borrowings from banks based on holdings as of the respective quarter-end 9.54% 9.27% 9.12% 8.95% 8.80% Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Cost of incremental borrowing Lender type (% of borrowing o/s) Book COF – Last 5 years Book COF – Last 5 quarters About 130 bps drop in book COF over the last 5 years About 75 bps drop in book COF over the last 4 qtrs 64 68 69 64 67 5 4 4 5 6 13 11 11 10 10 7 7 7 13 11 7 6 6 5 5 Jun'25 Sep'25 Dec'25 Mar'26 Jun'26 Banks NBFC Domestic DFI Multilat DFI Mutual Fund Others
Page 32
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Strong Liquidity & ALM Amount in ₹ Mn Liquidity buffer as of June 2026 Unencumbered cash & cash equivalents 18,472 Unavailed sanction from banks / FIs 4,500 Total Liquidity 22,972 Projected Cashflow Schedule (₹Mn) Q2FY27 Q3FY27 Q4FY27 Q1FY28 Opening Liquidity 22,972 23,934 23,080 24,780 Add: Principal collections & internal accruals 6,862 6,786 7,341 7,505 Less: Debt repayments 5,901 7,640 5,641 6,731 Closing Liquidity 23,934 23,080 24,780 25,554 Particulars (₹Mn) Up to 1M 1-2 M 2-3 M 3-6 M 6M – 1Y 1-3 Y 3-5 Y >5 Y Opening Liquidity 19,892 18,059 18,377 17,263 15,149 14,798 25,235 57,185 Add: Inflows from advances 1,654 1,711 1,715 5,473 12,080 47,742 45,577 19,357 Less: Outflows on borrowings 1,791 1,381 2,729 7,640 12,372 36,903 13,642 1,871 Add: Other inflows 81 74 92 246 116 271 187 5,279 Less: Other outflows 1,777 87 193 193 176 672 172 79,949 Cumulative mismatch 18,059 18,377 17,263 15,149 14,798 25,235 57,185 - No Cumulative mismatch in any of the time buckets
Page 33
Financial Statements
Page 34
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Balance Sheet Particulars (₹ Mn) Q1FY2027 Q4FY2026 Q1FY2026 Assets Cash & Cash equivalents 15,965 16,179 14,726 Bank balances other than cash & cash equivalents 935 5,311 4,439 Loans 134,809 129,848 122,198 - Loan portfolio 137,218 132,246 124,578 - Inter-Corporate Deposits 33 33 31 - Expected Credit Loss (2,443) (2,432) (2,411) Investments 2,311 2,271 2,159 Other financial assets 1,342 1,408 872 Non-Financial Assets 2,948 2,882 2,902 Total Assets 158,309 157,898 147,296 Liabilities & Equity Trade Payables 383 318 273 Debt Securities 5,539 7,832 7,763 Borrowings other than Debt Securities 73,121 74,172 70,955 Other Financial Liabilities 1,622 1,059 1,484 Non-Financial Liabilities 1,110 715 1,079 Total Equity 76,534 73,802 65,742 Total Liabilities & Equity 158,309 157,898 147,296
Page 35
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Profit and Loss Statement Particulars (₹ Mn) Q1FY2027 Q4FY2026 Q1FY2026 Y-o-Y Q-o-Q FY2026 FY2025 Y-o-Y Loan Portfolio 137,218 132,246 124,578 10% 4% 132,246 118,770 11% Interest Income (1) 8,096 7,975 7,655 6% 2% 31,347 27,674 13% - Interest on loan portfolio 7,539 7,369 7,137 6% 2% 29,243 25,871 12% - Income other than interest on loan portfolio 557 606 518 8% -8% 2,103 1,803 17% Net Gain on Fair value changes (2) 78 74 124 -37% 5% 425 494 -14% Fee & Other income (3) 213 212 133 60% 0% 688 492 40% Total Income (1+2+3) 8,387 8,261 7,912 6% 2% 32,460 28,660 13% Interest Expenses 1,715 1,814 1,873 -8% -5% 7,372 6,680 10% Net Interest Income 6,672 6,447 6,039 10% 3% 25,088 21,980 14% Operating Expenses 2,435 2,271 2,011 21% 7% 8,297 6,785 22% Pre-provision Operating Profit (PPOP) 4,237 4,176 4,028 5% 1% 16,791 15,195 10% Credit Cost 618 604 478 29% 2% 2,163 890 143% Profit before Tax (PBT) 3,620 3,571 3,550 2% 1% 14,628 14,306 2% Profit after Tax (PAT) 2,714 2,693 2,663 2% 1% 10,988 10,725 2% Earnings Per Share (Basic) 9.19 9.14 9.04 37.31 36.61 Earnings Per Share (Diluted) 9.18 9.16 9.02 37.25 36.50 Book value per Share 256.14 249.89 219.93 Income other than interest on loan portfolio includes penal charges, interest on deposits and other investments, processing fee and other fee income Operating Expenses is the sum of Employee Benefits Expenses, Depreciation and Amortization, Interest on lease liability and other expenses for the relevant period
Page 36
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Financial Ratios Particulars Q1FY2027 Q4FY2026 Q1FY2026 FY2026 FY2025 Interest Income (as a % of average loan portfolio) 22.46% 22.58% 23.51% 23.10% 24.03% Interest Expenses (as a % of average borrowings) 8.80% 8.95% 9.54% 9.21% 9.64% Net Interest Income % 13.66% 13.63% 13.97% 13.89% 14.39% Total Income (as a % of average loan portfolio) 25.06% 25.67% 26.14% 25.64% 26.63% Interest Expense (as a % of average loan portfolio) 5.09% 5.59% 6.14% 5.78% 6.16% Net Interest Margin % 19.97% 20.07% 19.99% 19.86% 20.46% Operating Expenses (as a % of average loan portfolio) 7.31% 7.10% 6.69% 6.60% 6.34% Loan losses & Provisions (as a % of average loan portfolio) 1.85% 1.88% 1.58% 1.71% 0.83% Profit before Tax (PBT) % 10.82% 11.09% 11.73% 11.55% 13.29% Tax % 2.71% 2.72% 2.93% 2.87% 3.33% Profit after Tax (PAT) or Return on average loan portfolio 8.11% 8.37% 8.80% 8.68% 9.96% Debt / Equity 1.03 1.11 1.20 1.11 1.26 Leverage (Total assets / Net worth) 2.07 2.14 2.24 2.14 2.29 Return on Equity 14.46% 15.09% 16.57% 16.06% 18.68% Operating cost to income ratio 36.62% 35.36% 33.45% 33.21% 31.01% Credit cost to income ratio 9.24% 9.35% 7.92% 8.60% 4.04% Total Cost to income ratio 45.86% 44.71% 41.34% 41.82% 35.05%
Page 37
Investor Presentation | Q1FY27 | Five Star Business Finance Limited Glossary Terms Explanation Loan Portfolio or AUM Loan Portfolio or AUM (Assets Under Management) represents the aggregate of current principal outstanding and overdue principal outstanding, if any, for all loan assets under management which includes loan assets held or securitised by the Company as of the last day of the relevant year or Period NIM / Net Interest Margin Net Interest Income / Average AUM Net Interest Income Net Interest Income represents interest income on term loans minus Interest on borrowings, Interest on debt securities and other interest expense for the relevant year or Period Average AUM Represents the monthly average of AUM for the relevant year or Period Gross NPA / Gross Stage 3 Assets 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 NPA / Net Stage 3 Assets Gross Stage 3 assets reduced by Stage 3 ECL as a percentage of AUM reduced by Stage 3 ECL
Page 38
Thank You For further information, you may please contact: Mr. Prashanth Sreenivasan – Chief – Treasury & Investor Relations prashanth@fivestargroup.in Mr. Srikanth Gopalakrishnan – JMD & Chief Financial Officer srikanth@fivestargroup.in Investor Relations – Five Star ir@fivestargroup.in