The Mumbai-based non-banking finance company IndoStar Capital Finance Ltd reported a standalone profit after tax of ₹130.2 crore for FY26, more than doubling from ₹52.6 crore in FY25. However, Q4FY26 saw a standalone net loss of ₹424 crore, driven by credit costs of ₹517.3 crore in the quarter — largely attributable to an additional provision of ₹326.13 crore made against its legacy Security Receipts portfolio as part of a balance sheet clean-up exercise.
The company’s Assets Under Management rose marginally to ₹8,056 crore at end-March 2026 from ₹7,963 crore a year earlier, with Vehicle Finance comprising ₹7,500 crore and the newly launched Micro LAP product reaching ₹175 crore. Disbursements for Q4FY26 came in at ₹1,306 crore, up 21 per cent year-on-year.
Net Interest Margin improved significantly to 7.8 per cent for FY26 from 5.6 per cent in FY25, supported by yields on loan assets rising to 16.9 per cent while the cost of borrowings declined to 10.4 per cent from 10.9 per cent. The incremental cost of borrowings for Q4FY26 stood at 9.0 per cent. The company holds a Capital Adequacy Ratio of 36.1 per cent, up sharply from 28.5 per cent a year ago.
Asset quality showed mixed signals. Gross Stage 3 rose to 4.8 per cent from 4.5 per cent in Q4FY25, though provision coverage on Stage 3 improved to 57.4 per cent from 46.7 per cent. Early delinquency and non-starter rates improved notably year-on-year.
The company operates 454 branches across 24 states with 4,585 employees. Promoters — Brookfield and Everstone — together hold 70.38 per cent of the company. IndoStar’s credit ratings stand at AA- (Stable) for long-term instruments from both CARE Edge and CRISIL.