Slides
Page 1
Five-Star Business Finance Limited Onwards & Upwards Reaching the Unreached Investor Presentation | Q2FY2027
Page 2
Investor Presentation | Q2FY27 | 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 | Q2FY27 | Five Star Business Finance Limited Executive Summary | Q2FY27 875 Branches +19 +75 ₹ 20,778 Mn Loan Disbursement ₹ 146,396 Mn Loan Portfolio 3.48% Gross NPA 11.50% 30+ DPD ₹ 2,993 Mn Profit After Tax 19.87% Net Interest Margin* 8.39% Return on Average AUM 15.25% Return on Equity +39% +74% +7% +14% +2 bps +84 bps -88 bps -67 bps +10% +5% -10 bps +16 bps +28 bps -59 bps +79 bps -1.66% * NIM computed as a % of average AUMq-o-q y-o-y
Page 4
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Executive Summary | H1FY27 875 Branches +75 ₹ 35,742 Mn Loan Disbursement ₹ 146,396 Mn Loan Portfolio 3.48% Gross NPA 11.50% 30+ DPD ₹ 5,707 Mn Profit After Tax 19.91% Net Interest Margin 8.25% Return on Average AUM 14.86% Return on Equity +44% +14% +84 bps -67 bps +3% +5 bps -65 bps -1.88% * NIM computed as a % of average AUMq-o-q y-o-y
Page 5
I am extremely happy to present to all of you, the details about another quarter of strong performance of Five-Star Business Finance Limited (“Five Star” or “Company”). The quarter ended September 30, 2026, saw Five Star delivering very strong numbers across various parameters. Our upward trajectory in disbursements continued during the current quarter as well, where we recorded our historically best disbursements at INR 2,078 Cr, up 39% over the previous quarter and 74% year-on-year. The loan book also saw robust growth with our AUM at INR 14,640 Cr, a growth of 7% over the previous quarter and 14% year-on-year. Importantly, this growth has come alongside improving collections, stable asset quality and profitability. Collections continue to trend very well with our unique customer collection efficiency (excluding NPAs) improving from 97.9% in Q1FY27 to 98.2% in the current quarter, along with improvement in X-bucket collections to 99.4% from 99.2% in Q1FY27, which has helped contain forward flows. As a result, the current bucket proportion of our AUM rose sharply from 83.30% to 84.78%, and 30+ DPD came down from 12.38% to 11.50%. With our clear focus on containing flows from the early buckets, I am very confident that we will continue to see our portfolio quality improving in the coming quarters. Slippages eased marginally to 0.68% from 0.70% in Q1FY27 and Gross Stage 3 assets were broadly stable at 3.48%, despite macroeconomic headwinds being witnessed across the industry. Credit cost improved to 1.80% of average AUM from 1.85% in Q1FY27. We expect flattish credit slippages and credit cost for the rest of the year, despite the industry headwinds. We availed incremental debt of ₹825 Cr during the quarter at an all-inclusive cost of 8.43%, and our cost of funds on the book eased marginally to 8.78% from 8.80% in Q1FY27. Net Interest Margin remained broadly stable at 19.87% as against 19.97% in Q1FY27 and was 16 bps higher year- on-year, showing that our spreads have held up despite the drop in yields. With the tightening rate cycle, we expect to see some inch-up in our cost of funds, both on incremental debt and on the book, which would have some impact on the spread and NIM however we remain confident of navigating this interest rate cycle with minimal impact. After a year beset with challenges across multiple fronts, we have bounced back stronger than before. Some of these numbers across disbursements and collections are our historical best and clearly validate the actions we have taken over the last few quarters and gives us immense confidence as we move forward. Investor Presentation | Q2FY27 | Five Star Business Finance Limited Commentary on Q2FY27 Lakshmipathy D Managing Director
Page 6
Investor Presentation | Q2FY27 | 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 875 Branches 11 States / UT 514,202 Loans 15,172 Employees
Page 7
Investor Presentation | Q2FY27 | 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 1,46,396 1984 2004 2010 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Q2FY27 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 ₹ 146,396 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 RatingsCRISIL
Page 8
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Shareholding – September 30, 2026 18.39% 43.02% 18.95% 1.89% 4.31% 13.44% 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 9
Investor Presentation | Q2FY27 | 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 10
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Distribution 112 branches 61 branches 120 branches 61 branches 281 branches 216 branches 5 branches 12 branches 3 branches 875 branches | 11 States / UT 19 branches opened during the quarter State-wise portfolio break-up State Branches Q2FY27 FY26 FY25 FY24 FY23 FY22 Tamil Nadu 216 27% 28% 29% 31% 35% 39% Andhra Pradesh 281 36% 36% 38% 37% 33% 29% Telangana 120 19% 19% 19% 19% 20% 19% Karnataka 61 4% 5% 6% 6% 7% 7% Madhya Pradesh 112 10% 9% 7% 5% 5% 5% Maharashtra 61 3% 2% 1% 1% 1% 1% Others 24 1% 1% 0% 0% 0% 0% Total 875 4 branches Strong distribution network driven by contiguous branch expansion Tamil Nadu includes branches and portfolio from the union territory of Puducherry
Page 11
Investor Presentation | Q2FY27 | 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 12
Investor Presentation | Q2FY27 | 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 72% 76% 80% 81% 82% 83% 84% 85% 85% Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Proportion of Digital Collections 12 10 9 8 9 9 8 8 8 FY23 FY24 FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Turnaround Time (# days) Tech led strong digital adoption leading to a significant proportion of digital collections even amongst small shopkeepers / earn & pay customers
Page 13
Investor Presentation | Q2FY27 | 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 14
Investor Presentation | Q2FY27 | 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, Suri & Co) 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 15
Investor Presentation | Q2FY27 | 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 16
Investor Presentation | Q2FY27 | 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 17
Investor Presentation | Q2FY27 | 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 18
Investor Presentation | Q2FY27 | 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 19
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Distinguished Board Lakshmipathy Deenadayalan Chairman & Managing Director Anand Raghavan* Independent Director T T Srinivasaraghavan Independent Director Chair – RMC Ramkumar Ramamoorthy Independent Director Chair – IT Strategy Committee Rajeshwari S Independent Director Chair – Audit Committee Sreeram Iyer** Independent Director Thirulokchand Vasan Non-Executive Director * Ceased 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 20
Investor Presentation | Q2FY27 | 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 Shankar Subramanian Chief Risk Officer* Srikanth G JMD & CFO Lakshmipathy D Managing Director Vijayaraghavan Chief Compliance Officer * Appointed as CRO w.e.f October 26, 2026
Page 21
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 | Q2FY27 | Five Star Business Finance Limited Ajitha K Head – Customer Service Operations
Page 22
Investor Presentation | Q2FY27 | 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 23
Business Updates
Page 24
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Loan Book & Disbursements 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 1,28,471 1,29,641 1,32,246 1,37,218 1,46,396 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 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 – 14% Q-o-Q Growth – 7% Last 5-year CAGR ~24% 11,959 9,764 12,133 14,964 20,778 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27
Page 25
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Financial Highlights 8,065 8,222 8,261 8,387 8,750 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Total Income – Last 5 qtrs. (₹Mn) Profit Before Tax – Last 5 qtrs. (₹Mn) 3,819 3,688 3,571 3,620 3,748 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 2,861 2,770 2,693 2,714 2,993 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Net Interest Income – Last 5 qtrs. (₹Mn) Profit After Tax – Last 5 qtrs. (₹Mn) Net interest income = Total Income less Interest expenses 6,265 6,337 6,447 6,672 7,073 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27
Page 26
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Competitive Spreads 23.20% 23.01% 22.58% 22.46% 22.26% 9.27% 9.12% 8.95% 8.80% 8.78% Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 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 13.93% 13.89% 13.63% 13.66% 13.48% Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Portfolio Yield Cost of borrowing Spread
Page 27
Investor Presentation | Q2FY27 | 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% 27% 1% 19% 4% 10% 3% 25% 49% 24% 2% 38% 15% 45% Tier 3 to Tier 6 are the primary catchment areas 2% Sep’26 Jun’26 Sep’25 Up to 3L 25% 27% 30% 3-5L 49% 51% 53% >5L 26% 22% 17% Focus on building a diversified portfolio across ticket sizes
Page 28
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Asset Quality Indicators PCR on GNPA (%) PCR on Overall AUM (%) 1.89 1.83 1.84 1.78 1.73 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 45.19 39.84 41.40 40.14 39.49 30.0 0 35.0 0 40.0 0 45.0 0 50.0 0 55.0 0 60.0 0 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Gross NPA (%) 2.64 3.18 3.37 3.46 3.48 - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Net NPA (%) 1.46 1.94 2.00 2.10 2.14 - 0.50 1.00 1.50 2.00 2.50 3.00 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27
Page 29
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Asset Quality Indicators Credit Cost to Average AUM (%) 1.60 1.76 1.88 1.85 1.80 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 18.33 18.23 17.31 16.70 15.22 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 1+ DPD (%) 9.53 9.63 9.31 8.92 8.02 2.64 3.18 3.37 3.46 3.48 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 30+ DPD (%) Stage 2 POS Stage 3 POS 12.38%12.81% 12.69%12.17% 0.67 1.09 0.70 0.70 0.68 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Slippage Ratio (%) Computed as increase in GNPA + write offs for the quarter as a % of quarter opening Standard assets (not annualised) 11.50%
Page 30
Investor Presentation | Q2FY27 | Five Star Business Finance Limited ECL Provisioning As of Sep 30, 2026 (₹Mn) Stage 1 Stage 2 Stage 3 Total Loans Outstanding (Gross) 1,29,563 11,733 5,100 1,46,396 ECL Provision 163 352 2,014 2,529 Loans Outstanding (Net) 1,29,399 11,382 3,086 1,43,867 ECL Provision % 0.13% 3.00% 39.49% 1.73% 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 Sep 30, 2025 (₹Mn) Stage 1 Stage 2 Stage 3 Total Loans Outstanding (Gross) 1,12,838 12,245 3,388 1,28,471 ECL Provision 295 605 1,531 2,431 Loans Outstanding (Net) 1,12,543 11,640 1,857 1,26,040 ECL Provision % 0.26% 4.94% 45.19% 1.89%
Page 31
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Liability Franchise 60% 56% 56% 58% 55% 57% 53% 57% 61% 10% 12% 17% 17% 14% 14% 15% 14% 14% 12% 11% 10% 10% 10% 9% 10% 7% 7% 18% 20% 17% 15% 20% 19% 17% 15% 12% 1% 1% 1% 1% 1% 1% 6% 7% 6% Sep'24 Dec'24 Mar'25 Jun'25 Sep'25 Dec'25 Mar'26 Jun'26 Sep'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 32
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Liability Franchise 10.51% 10.12% 9.71% 9.64% 9.21% FY22 FY23 FY24 FY25 FY26 10,680 4,600 9,283 4,500 8,250 8.56% 8.19% 8.53% 8.33% 8.43% 6.0 0% Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Incremental Borrowings (₹ Mn) Cost of incremental borrowings Proportion of borrowings from banks based on holdings as of the respective quarter-end 9.27% 9.12% 8.95% 8.80% 8.78% Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 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 50 bps drop in book COF over the last 4 qtrs 68 69 64 67 69 4 4 5 6 6 11 11 10 10 9 7 7 13 11 11 6 6 5 5 4 Sep'25 Dec'25 Mar'26 Jun'26 Sep'26 Banks NBFC Domestic DFI Multilat DFI Mutual Fund Others
Page 33
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Strong Liquidity & ALM Amount in ₹ Mn Liquidity buffer as of Sep 2026 Unencumbered cash & cash equivalents 12,867 Unavailed sanction from banks / FIs 11,200 Total Liquidity 24,067 Projected Cashflow Schedule (₹Mn) Q3FY27 Q4FY27 Q1FY28 Q2FY28 Opening Liquidity 24,067 24,038 26,208 27,860 Add: Principal collections & internal accruals 7,852 8,253 8,727 7,817 Less: Debt repayments 7,881 6,084 7,075 5,999 Closing Liquidity 24,038 26,208 27,860 29,678 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 14,292 12,391 13,003 9,957 9,427 8,796 20,568 55,023 Add: Inflows from advances 1,687 1,765 1,778 5,626 12,411 49,619 48,176 23,320 Less: Outflows on borrowings 1,823 1,335 4,723 6,084 13,074 37,293 13,677 1,324 Add: Other inflows 139 193 73 117 91 229 127 5,558 Less: Other outflows 1,903 10 175 188 59 784 172 82,577 Cumulative mismatch 12,391 13,003 9,957 9,427 8,796 20,568 55,023 - No Cumulative mismatch in any of the time buckets
Page 34
Financial Statements
Page 35
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Balance Sheet Particulars (₹ Mn) Q2FY2027 Q1FY2027 Q2FY2026 Assets Cash & Cash equivalents 10,323 15,965 15,230 Bank balances other than cash & cash equivalents 954 935 7,017 Loans 143,901 134,809 1,26,072 - Loan portfolio 1,46,396 137,218 1,28,471 - Inter-Corporate Deposits 34 33 32 - Expected Credit Loss (2,529) (2,443) (2,431) Investments 2,351 2,311 2,197 Other financial assets 1,168 1,342 997 Non-Financial Assets 3,086 2,948 2,835 Total Assets 1,61,783 158,309 1,54,348 Liabilities & Equity Trade Payables 411 383 291 Debt Securities 5,669 5,539 7,945 Borrowings other than Debt Securities 74,011 73,121 75,815 Other Financial Liabilities 1,646 1,622 991 Non-Financial Liabilities 1,012 1,110 1,239 Total Equity 79,034 76,534 68,067 Total Liabilities & Equity 1,61,783 158,309 1,54,348
Page 36
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Profit and Loss Statement Particulars (₹ Mn) Q2FY2027 Q1FY2027 Q2FY2026 Y-o-Y Q-o-Q H1FY2027 H1FY2026 Y-o-Y Loan Portfolio 1,46,396 1,37,218 1,28,471 14% 7% 1,46,396 1,28,471 14% Interest Income (1) 8,364 8,096 7,743 8% 3% 16,460 15,398 7% - Interest on loan portfolio 7,874 7,539 7,331 7% 4% 15,413 14,468 7% - Income other than interest on loan portfolio 490 557 413 19% -12% 1,047 930 13% Net Gain on Fair value changes (2) 66 78 151 -56% -15% 144 274 -47% Fee & Other income (3) 320 213 172 86% 50% 534 305 75% Total Income (1+2+3) 8,750 8,387 8,065 8% 4% 17,138 15,977 7% Interest Expenses 1,677 1,715 1,800 -7% -2% 3,392 3,673 -8% Net Interest Income 7,073 6,672 6,265 13% 6% 13,746 12,304 12% Operating Expenses 2,683 2,435 1,936 39% 10% 5,117 3,947 30% Pre-provision Operating Profit (PPOP) 4,390 4,237 4,329 1% 4% 8,629 8,357 3% Credit Cost 643 618 510 26% 4% 1,262 988 28% Profit before Tax (PBT) 3,748 3,620 3,819 -2% 4% 7,367 7,369 0% Profit after Tax (PAT) 2,993 2,714 2,861 5% 10% 5,707 5,524 3% Earnings Per Share (Basic) 10.14 9.19 9.72 19.33 18.76 Earnings Per Share (Diluted) 10.13 9.18 9.69 19.31 18.71 Book value per Share 266.02 256.14 228.85 266.02 228.85 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 PAT for Q2FY2027 & H1FY2027 includes reversal of excess tax provision amounting to ₹187.53 Mn in respect of earlier years
Page 37
Investor Presentation | Q2FY27 | Five Star Business Finance Limited Financial Ratios Particulars Q2FY2027 Q1FY2027 Q2FY2026 H1FY2027 H1FY2026 Interest Income (as a % of average loan portfolio) 22.26% 22.46% 23.20% 22.35% 23.37% Interest Expenses (as a % of average borrowings) 8.78% 8.80% 9.27% 8.79% 9.40% Net Interest Income % 13.48% 13.66% 13.93% 13.56% 13.97% Total Income (as a % of average loan portfolio) 24.54% 25.06% 25.32% 24.78% 25.74% Interest Expense (as a % of average loan portfolio) 4.67% 5.09% 5.61% 4.87% 5.87% Net Interest Margin % 19.87% 19.97% 19.71% 19.91% 19.86% Operating Expenses (as a % of average loan portfolio) 7.56% 7.31% 6.12% 7.43% 6.40% Loan losses & Provisions (as a % of average loan portfolio) 1.80% 1.85% 1.60% 1.82% 1.59% Profit before Tax (PBT) % 10.51% 10.82% 11.99% 10.65% 11.87% Tax % 2.12% 2.71% 3.01% 2.40% 2.97% Profit after Tax (PAT) or Return on average loan portfolio 8.39% 8.11% 8.98% 8.25% 8.90% Debt / Equity 1.01 1.03 1.23 1.01 1.23 Leverage (Total assets / Net worth) 2.05 2.07 2.27 2.05 2.27 Return on Equity 15.25% 14.46% 16.91% 14.86% 16.74% Operating cost to income ratio 38.04% 36.62% 31.05% 37.34% 32.23% Credit cost to income ratio 9.08% 9.24% 8.12% 9.16% 8.01% Total Cost to income ratio 47.12% 45.86% 39.17% 46.50% 40.24%
Page 38
Investor Presentation | Q2FY27 | 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 39
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