IndoStar Capital Finance Limited has reported steady operational momentum in the third quarter of FY26, driven by higher disbursements, improving profitability metrics, and a sharper focus on its core lending businesses.
The NBFC recorded disbursements of Rs 1,117 crore during the quarter, marking a 20 per cent quarter-on-quarter increase, while assets under management rose to Rs 7,692 crore, reflecting sustained demand across priority segments.
The company’s profitability improved sequentially, supported by better yields, a lower cost of funds, and disciplined cost management. Pre-provision operating profit increased 23 per cent quarter-on-quarter, underscoring operating leverage benefits from scale and portfolio optimisation. IndoStar continued to maintain asset quality stability, with net Stage 3 assets remaining contained at 1.75 per cent, highlighting a cautious underwriting approach amid a selective growth strategy.
During the quarter, IndoStar completed the sale of its housing finance subsidiary, a move that aligns with its strategy to simplify operations and concentrate on higher-return segments. The company is now fully focused on vehicle finance and micro loan-against-property businesses, which management views as scalable and resilient across economic cycles.
To support this transition, IndoStar has strengthened leadership across key functions and accelerated technology adoption across the loan lifecycle. Enhanced digital tools in credit assessment, collections, and customer engagement are expected to improve turnaround times, operational efficiency, and portfolio monitoring.
Capital adequacy also received a boost through warrant conversions during the quarter, reinforcing balance sheet strength and providing headroom for future growth. With a streamlined business model, improved profitability trends, and stable asset quality, IndoStar is positioning itself for sustainable growth as it deepens its presence in core retail and MSME-focused lending segments.
Send news announcements/press releases to:
editor@thefoundermedia.com
