Indostar Capital Finance Ltd
Press Release in connection with Audited Result (Standalone & Consolidated) for the quarter and Financial year ended March 31, 2026
RESULTS
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 28 May 2026, 11:02 AM IST · BSE ID: a3147e41-170a-4304-9e11-db854c2be8ec
View Original BSE Filing (PDF)
💡
In Simple Terms
IndoStar Capital Finance announced its latest quarterly financial results, showing growth in lending and profits, alongside increased provisions for certain assets.
🤖 AI Summary
- IndoStar Capital Finance reported Q4 FY26 disbursements of ₹1,306 crore, up 21% year-on-year.
- Assets Under Management (AUM) reached ₹8,056 crore as of March 31, 2026.
- Q4 FY26 Pre-provision operating profit (PPOP) was ₹93 crore, a 51% increase year-on-year.
- Additional provision of ₹326.13 crore made against Security Receipts, boosting coverage to 63%.
- Net Interest Income grew 19.8% YoY to ₹214.7 crore on a standalone basis for Q4 FY26.
🔢 Key Numbers — exact figures from BSE filing, not rounded
Disbursements Q4 FY26
₹ 1,306 crore
21%
Assets Under Management (AUM) as of March 31, 2026
₹ 8,056 crore
Pre-provision operating profit (PPOP) Q4 FY26
₹ 93 crore
51%
Net Interest Income Q4 FY26 (Standalone)
₹ 214.7 crore
19.8%
Additional provision for Security Receipts
₹ 326.13 crore
Gross Stage 3 assets as at March 31, 2026
4.77%
Net Stage 3 assets as at March 31, 2026
2.09%
Capital Adequacy Ratio (CAR) Standalone
36.1%
Profit/(loss) after tax Q4 FY26 (Standalone)
₹ 12.4 crore
Profit/(loss) after tax FY26 (Standalone)
₹ 130.2 crore
🏢 How This Affects the Company
The company's retail NBFC focus on Vehicle Finance and Micro Loans Against Property contributed to a 21% YoY growth in Q4 FY26 disbursements and a 5% sequential increase in AUM to ₹8,056 crore.
Pre-provision operating profit (PPOP) increased by 51% YoY to ₹93 crore in Q4 FY26. An additional provision of ₹326.13 crore was made against Security Receipts, leading to a higher provision coverage ratio of 63%.
Technology transformation initiatives like automated scorecard-based approvals and e-KYC approval are improving onboarding efficiency. Branch expansion to 454 branches across 24 states strengthens distribution reach and leverages existing Vehicle Finance networks for Micro LAP.
The additional provision of ₹326.13 crore against Security Receipts and a management overlay of ₹49.00 crore for macroeconomic uncertainties de-risk the balance sheet from potential future volatility and enhance asset quality stability.
👥 What This Means For Shareholders
✅
Action Required
No action required from shareholders based on this financial results press release.
👤
Who Is Affected
All shareholders are affected by the company's financial performance. Gross Stage 3 assets stood at 4.77% and Net Stage 3 assets at 2.09% as of March 31, 2026.
🔍
Management Signal
Management is focused on growth in secured lending, operational efficiency, and de-risking the balance sheet through strategic provisions and technology adoption.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
Q1 FY27 results — monitor continued growth in disbursements and AUM.
Update on Security Receipts recoveries — track realization of ₹588.63 crore net carrying value.
Progress on technology transformation — observe scorecard coverage expansion to 70% by March 2027.
MEDIUM RISK
Geopolitical developments introduce macroeconomic uncertainties, leading to a ₹49.00 crore management overlay.
💡 Investor Takeaway
IndoStar Capital Finance reported Q4 FY26 disbursements of ₹1,306 crore, up 21% YoY, and Pre-provision operating profit of ₹93 crore, a 51% YoY increase. The company also allocated an additional ₹326.13 crore provision for Security Receipts, boosting coverage to 63%.
⚖️ Strengths & Concerns
✅ Positives
- Q4 FY26 Pre-provision operating profit (PPOP) grew 51% YoY to ₹93 crore, driven by improved operating efficiencies.
- Provision coverage ratio on Security Receipts increased significantly to 63% from 26% a year ago, improving balance sheet strength.
⚠️ Concerns
- The full impact of geopolitical developments and macroeconomic uncertainties is not yet captured within the Expected Credit Loss (ECL) framework.
- Standalone Profit/(loss) after tax for Q4 FY26 was ₹12.4 crore, significantly lower than the full year FY26 figure of ₹130.2 crore.
❓ Frequently Asked Questions
What were IndoStar Capital Finance's disbursements in Q4 FY26?
IndoStar Capital Finance reported disbursements of ₹1,306 crore in Q4 FY26, which is a 21% growth compared to Q4 FY25.
What was the Pre-provision operating profit (PPOP) for IndoStar Capital Finance in Q4 FY26?
The Pre-provision operating profit (PPOP) for IndoStar Capital Finance in Q4 FY26 stood at ₹93 crore, representing a 51% growth year-on-year.
What is IndoStar Capital Finance's Assets Under Management (AUM) as of March 31, 2026?
As of March 31, 2026, IndoStar Capital Finance's Assets Under Management (AUM) were ₹8,056 crore.
How much additional provision did IndoStar Capital Finance make for Security Receipts?
IndoStar Capital Finance made an additional provision of ₹326.13 crore against its Security Receipts portfolio, increasing the provision coverage ratio to 63%.
What were IndoStar Capital Finance's Net Interest Income in Q4 FY26 on a standalone basis?
On a standalone basis, IndoStar Capital Finance's Net Interest Income for Q4 FY26 was ₹214.7 crore, showing a 19.8% year-on-year growth.
Questions based on this BSE filing only. For information purposes.