IndoStar Capital Finance Q2 FY25 Growth Metrics Update

Q2 FY25 presentation outlines operating progress

IndoStar Capital Finance Limited’s September 2024 investor presentation set out key operating and financial metrics for the second quarter of FY25. The company reported figures for assets under management, disbursements, profit after tax, branches and a customer figure. The presentation also showed a separate set of AUM, disbursement, margin, asset-quality and capital-ratio metrics. The disclosed data provides a comparison with Q2 FY24 and shows changes in the company’s lending activity over the year. IndoStar operates as a non-banking finance company registered with the Reserve Bank of India as a systemically important non-deposit taking company. Its stated financing offerings include new and used commercial vehicles, construction equipment, tractors and used cars. Its wholly owned subsidiary, IndoStar Home Finance, provides affordable home finance to self-employed and salaried customers.

Assets under management increased year on year

The presentation reported consolidated AUM of Rs 10,112 crore in Q2 FY25, compared with Rs 7,726 crore in Q2 FY24. This represented an increase of Rs 2,386 crore based on the figures presented. AUM is an important operating measure for an NBFC because it indicates the size of its managed lending book. In a separate set of key performance highlights, IndoStar reported AUM of Rs 7,550 crore, against Rs 5,832 crore in Q2 FY24. The presentation extract does not explain the basis for the difference between these two AUM figures. The consolidated label is explicitly shown alongside the Rs 10,112 crore figure. Readers should therefore distinguish between the two reported metric sets rather than treat them as directly interchangeable.

Disbursements rose in both reported metric sets

Consolidated disbursements were reported at Rs 1,724 crore in Q2 FY25, up from Rs 1,269 crore in Q2 FY24. That is a year-on-year increase of Rs 455 crore. The other key-performance section showed disbursements of Rs 1,462 crore, compared with Rs 1,048 crore a year earlier. Both disclosures point to higher lending disbursement activity in the quarter compared with the corresponding period of FY24. Disbursements measure loans originated during a period, while AUM reflects the stock of managed loans. The presentation does not provide a product-wise split of the reported disbursements in the supplied material. It also does not provide quarterly pricing or borrower-segment data for these figures.

Profit and distribution footprint expanded

The consolidated performance highlights showed profit after tax of Rs 31.7 crore for Q2 FY25. The comparable Q2 FY24 PAT was Rs 24.8 crore. The difference between the two reported figures was Rs 6.9 crore. IndoStar also reported 566 branches in Q2 FY25, compared with 476 branches in Q2 FY24. The branch network therefore increased by 90 branches over the period. The presentation additionally displayed a customer figure of 5,172, against 3,512 in Q2 FY24, although the supplied extract does not specify the unit or definition used for that measure. The figures indicate that the company was expanding its physical distribution network while reporting a higher consolidated PAT.

Margin, asset quality and capital metrics

The separate Q2 FY25 highlights showed net interest margins of 5.2%, compared with 5.8% in Q2 FY24. The reported NIM was therefore lower by 0.6 percentage point year on year. Net Stage 3 declined to 2.5% from 4.0% in Q2 FY24. Stage 3 is a reported indicator of loans with significant credit impairment under the applicable classification framework. The reported decline was 1.5 percentage points. CRAR was 25.9%, compared with 32.8% in Q2 FY24. The presentation provides the ratios but does not state reasons for the changes in margin or CRAR in the supplied extract.

Key numbers from the September 2024 presentation

Digitalisation and risk controls were stated priorities

The September 2024 presentation listed digitalisation as a strategic focus. It referred to expanding the use of data and systems, automating controls and alerts to minimise risk, and continuously evolving product offerings. The company also identified expansion of its distribution footprint and customer lifetime value as focus areas. Maintaining a robust balance sheet and being agile and future-ready were included in the presentation’s stated priorities. These are strategy statements rather than quantified targets in the supplied material. No timeline for these initiatives was provided in the extract. The reported branch and lending figures offer context for the company’s stated focus on distribution and systems.

Investor disclosures have continued across reporting periods

IndoStar has continued to file investor presentations in connection with financial-result disclosures under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. A January 24, 2024 filing related to unaudited standalone and consolidated results for the quarter and nine months ended December 31, 2023. A January 20, 2025 filing covered the quarter and nine months ended December 31, 2024. On August 13, 2025, the company filed an investor presentation on unaudited standalone and consolidated results for the quarter ended June 30, 2025. The investor-relations list in the supplied material includes presentations from Q1 FY25 through Q1 FY27. However, detailed financial figures for those later presentations are not included in the supplied text.

Context from IndoStar’s earlier operating disclosures

IndoStar’s earlier presentations show that its investor communication has covered both standalone and consolidated results. A November 2020 results update reported net revenue from operations of Rs 153.8 crore for Q2 FY21, after normalising the disclosed Rs 1,538 million figure into crore rupees. The company’s February 2022 communication described its activities as commercial-vehicle finance, SME lending and affordable home finance through IndoStar Home Finance. The supplied material also identifies Brookfield and Everstone as co-promoters in that 2022 communication. These historical disclosures help place the Q2 FY25 presentation within a longer record of results-related investor updates. They should not be used as a direct comparison with Q2 FY25 metrics because they relate to different reporting periods and disclosures.

What the reported figures mean for investors

The Q2 FY25 disclosures show higher reported AUM, disbursements and consolidated PAT than in Q2 FY24. They also show a reduction in the reported Net Stage 3 ratio, which is relevant to assessment of portfolio quality. At the same time, the reported NIM and CRAR were lower than the corresponding Q2 FY24 figures in the separate highlights. This means the presentation contains both growth indicators and changes in financial ratios that investors may monitor across subsequent disclosures. The material does not provide a share-price reaction, valuation data, guidance or management commentary on future financial performance. It also does not state the drivers behind the year-on-year changes in the reported ratios. The next available investor presentations and financial-result filings would provide the relevant formal updates on subsequent periods.

Conclusion

IndoStar’s September 2024 Q2 FY25 presentation reported a larger lending book, higher disbursements, higher consolidated PAT and a wider branch network than a year earlier. It also reported lower Net Stage 3, alongside lower NIM and CRAR in the separate key-performance highlights. The company has continued to publish results-related investor presentations under the SEBI disclosure framework, including filings covering December 2024 and June 2025 periods. Investors can track later reported metrics through the company’s subsequent investor presentations and exchange disclosures.