Synopsis:
IndoStar Capital Q1 FY26 revenue rose 12 percent YoY to Rs. 343.5 crore; net profit surged to Rs. 545.6 crore on a Rs. 1,176 crore divestment gain; standalone AUM reached Rs. 7,783 crore.
During Thursday’s trading session, shares of a middle-layered non-banking finance company (NBFC) registered with the RBI surged nearly 4.3 percent on BSE, after reporting financial results for Q1 FY26 with a net profit growth of around 1415 percent QoQ and 2082 percent YoY.
With a market cap of Rs. 3,727 crores, the shares of Indostar Capital Finance Limited surged to hit an intraday high at Rs. 285.2 on BSE, up by around 4.3 percent, as against its previous closing price of Rs. 273.4. The stock has delivered positive returns of nearly 14 percent in the last one year, but has fallen by over 11 percent in the last one month.
What’s the News
Indostar Capital Finance Limited announced the financial results for Q1 FY26 on Wednesday after market hours, according to the latest regulatory filings on the stock exchanges.
For Q1 FY26, Indostar Capital reported a consolidated total revenue from operations of Rs. 343.5 crores, down by around 8 percent QoQ from Rs. 372.6 crores in Q4 FY25, but increased marginally on a year-on-year basis by around 12 percent from Rs. 306.5 crores recorded in Q1 FY25.
Net profit for the quarter stood at Rs. 545.6 crores, marking an impressive growth of around 1415 percent QoQ from Rs. 36 crores in Q4 FY25, and a year-on-year increase of about 2082 percent from Rs. 25 crores in Q1 FY25.
During the quarter, Indostar Capital completed the divestiture of its wholly owned subsidiary, Niwas Housing Finance Private Limited, with sale proceeds received on 17th July 2025. Following completion, the company has derecognised its investment in Niwas Housing and recognised a one-time gain of Rs. 1,176 crores.
Assets under Management (AUM) stood at Rs. 7,783 crore, driven by a 14 percent YoY rise in the retail vehicle finance portfolio to Rs. 7,232 crore. Quarterly disbursements totalled Rs. 858 crore, representing a 39 percent YoY decline. Asset quality metrics showed Gross Stage 3 at 4.04 percent and Net Stage 3 at 1.68 percent.
IndoStar is a non-banking finance company (NBFC) registered with the Reserve Bank of India, classified as a middle-layered NBFC. It operates as a focused, standalone NBFC with two core segments of Vehicle Finance and Micro Loans Against Property (M-LAP).
Co-promoted by Brookfield and Everstone, 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.
Written by Shivani Singh
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