### Five-Star Business Finance Reports Steady Q2 Performance Amid Market Challenges

Chennai, October 29, 2025 — Five-Star Business Finance Limited (BSE: 543663, NSE: FIVESTAR) has announced its unaudited financial results for the quarter and half-year ending September 30, 2025. The company demonstrated resilience with an 18% year-over-year growth in Assets Under Management (AUM), reaching ₹12,847 Crores.

For Q2FY26, the company recorded a Profit After Tax (PAT) of ₹286 Crores, up 7% from the previous quarter, and a total income of ₹807 Crores, reflecting a 14% y-o-y increase. However, disbursements fell to ₹1,196 Crores, a decrease attributed to enhanced customer onboarding controls.

Chairman & Managing Director, Mr. Lakshmipathy Deenadayalan, expressed optimism, stating, “The downtrend witnessed in Q1 has been arrested, and we expect to see green shoots emerging in Q3.” He emphasized ongoing strategies in credit underwriting, collections, and risk management as key focus areas for future growth.

The company’s asset quality showed slight deterioration, with Gross Stage 3 Assets rising to 2.64%. Still, overall collection efficiency remained robust at 96.7%, with collections from unique customers steady at 95.1%. The firm continues to expand its footprint, now boasting 800 branches across multiple states, having opened 33 new locations this quarter.

As Five-Star navigates a challenging economic landscape, its strong liquidity position of ₹2,360 Crores and reduced cost of incremental debt to 8.56% underline its strategic focus on sustainable growth.

For further details, visit [Five-Star Business Finance's Investor Page](https://fivestargroup.in/investors/).

Stay tuned for more updates as Five-Star aims to strengthen its portfolio and improve performance in the upcoming quarters.