Remember when IndoStar was a corporate lender trying to out-banker the banks? Now it’s a lean, retail-hungry NBFC with a new haircut and humbler ambitions. The sale of Niwas Housing was the final cleanse—because who needs baggage when you’ve got Micro LAP dreams and repo rates dropping faster than Sensex tweets? The Gita says, “Change is the law of the universe,” and IndoStar seems to have finally read that line.
Keep reading—because the story of a turnaround in slow motion just got interesting.
At a Glance
- Revenue up 15.7% YoY – CFO swears it’s not Excel magic, just actual lending.
- Disbursements ₹927 cr – Up 8% QoQ; vehicle loans are still the bread and butter.
- AUM ₹7,564 cr – Down slightly, thanks to an ARC haircut no one wanted to mention.
- NII ₹190 cr – Margins up to 7.6%, proving spreads can heal wounds.
- Net Profit ₹10.4 cr – Profit yoga: lower but steady breathing.
- GNPA 3.04%, NNPA 1.13% – The balance between risk and redemption.
- Capital Adequacy 37.3% – The CFO’s favorite bedtime story.
Management’s Key Commentary
“We’ve transformed from corporate to retail NBFC.”
(Translation: We’ve learned that lending to truck drivers beats lending to tycoons.)
“Micro LAP is our next growth engine.”
(The new toy. It’s small, cute, and we promise not to break it this time.)
“Cost of borrowing down from 10.8%
to 10.2%.”
(When even RBI cuts rates, you don’t need divine intervention.)
“Collection efficiency at 94%, up from 92% last year.”
(Still not 97%, but hey, who’s counting in an NBFC?) 😏
“We’ve converted 48 micro branches to full-fledged ones.”
(Because calling them ‘micro’ hurt our ego.)
“Our focus is sustainable, quality growth.”
(Corporate code for ‘we’ve stopped chasing volume for Instagram likes.’)
“We’ll expand Micro LAP to Andhra and Telangana.”
(Because Tamil Nadu alone can’t carry our dreams forever.)
Numbers Decoded
| Metric | Q2FY26 | Q1FY26 | Q2FY25 | Comment |
|---|---|---|---|---|
| AUM (₹ Cr) | 7,564 | 7,783 | 7,912 | Slight dip; ARC deal shaved it. |
| Disbursements (₹ Cr) | 927 | 858 | 1,452 | Vehicle finance dominates. |
| NII (₹ Cr) | 190 | 184 | 164 | Margins up to 7.6%. |
| Cost of Funds | 10.2% | 10.4% | 10.8% | RBI rate cuts helping. |
| GNPA | 3.04% | 3.5% | 4.7% | Downward trend; tightening works. |
| Net Profit (₹ Cr) | 10.4 | 12.7 | 18.0 | Impact of ARC sale. |
The math says IndoStar’s pruning phase is paying off—asset quality up, growth steady, and profits just catching their breath.
Analyst Questions
Rhea (SDA Finance): Why is
