MUMBAI, India, Aug. 14, 2025 /PRNewswire/ — IndoStar, a middle-layered non-banking finance company (NBFC) registered with the Reserve Bank of India, announced its financial results for the quarter ended June 30th, 2025 earlier today.
During the quarter, the Company successfully completed the divestiture of its 100% subsidiary, Niwas Housing Finance Private Limited. Sale proceeds were received on July 17, 2025. Following completion, the Company has derecognized its investment in Niwas Housing Finance and recognized a one-time gain of ₹ 1,176 crore.
IndoStar now operates as a focused standalone NBFC with two core segments of Vehicle Finance and Micro Loans Against Property (M-LAP). This strategic transition marks a new chapter in IndoStar’s value creation journey, enabling sharper execution, deeper market penetration, and enhanced capital efficiency across its core lending businesses.
Going forward, IndoStar’s investor communications and performance updates will pertain exclusively to its standalone business, given the successful completion of the transaction and full divestment from Niwas Housing Finance Private Limited.
IndoStar Capital Finance Limited (“ICFL”) (Standalone) Financial performance
ICFL delivered a PAT of ₹ 535 crore in Q1 FY26. The AUM for ICFL stands at ₹ 7,783 crore up 9% from Q1FY25, out of which the retail vehicle finance business is ₹ 7,232 crore up 14% from Q1 FY25. Disbursements during the quarter stood at ₹ 858 crore down 39% from Q1 FY25. The Company’s Gross Stage 3 stands at 4.04% in Q1 FY26 and Net Stage 3 is at 1.68%.
During the quarter, the Company revised its technical write-off policy for loans over 210 days past due. As a result of this change, the Company has written off loans of ₹ 161 crores. The Company will continue to pursue recovery efforts and legal actions for these technical written-off cases. Additionally, the Company has also made incremental provisions of ₹ 255 crore on select Security Receipts (SR) where near-term recovery remains uncertain. This is in line with the company’s focused effort to reduce the net-value of its investment in Security Receipts.
Key Performance Highlights (ICF Standalone):
|
Particulars (₹ in crore) |
Q1 FY26 |
Q1 FY25 |
Y-o-Y% |
|
Net Revenue from operations |
158.1 |
143.8 |
10.0 % |
|
Operating expenses |
(139.2) |
(112.1) |
24.3 % |
|
Pre-provision operating profit |
18.9 |
31.7 |
(40.5 %) |
|
Profit after tax |
535.4 |
10.8 |
– |
|
CAR (%) Standalone |
32.7 % |
27.7 % |
|
|
Leverage (D/E) |
1.7x |
2.0x |
About IndoStar Capital Finance Limited
IndoStar is a non-banking finance company (NBFC) registered with the Reserve Bank of India classified as a middle layered NBFC. With Brookfield & Everstone as co-promoters, IndoStar is a professionally managed and institutionally owned entity engaged in providing used and new commercial vehicle financing and providing loans to small business owners. For more information, visit www.indostarcapital.com.
(BSE: 541336) (NSE: INDOSTAR) (ISIN: INE896L01010) (CIN: L65100MH2009PLC268160)
Safe Harbor
This document is to provide the general background information about the Company’s activities as at the date of the release. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any investor should subscribe / purchase the company shares. The Company makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information contained herein. This release may include certain forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as ”expects”, “plans”, ‘will”, “estimates”, “projects”, or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, our ability to manage our international operations, government policies, regulations, etc. The Company does not undertake any obligation to revise or update any forward-looking statement that may be made from time to time by or on behalf of the Company including to reflect actual results, changes in assumptions or changes in factors affecting these statements. Given these risks, uncertainties and other factors, viewers of this release are cautioned not to place undue reliance on these forward-looking statements. This release may contain certain currency exchange rates and the same have been provided only for the convenience of reader.
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