IndoStar Capital Q2 FY27 Results: NII Rises 27% YoY

Board approves September-quarter results

IndoStar Capital Finance held its Board of Directors meeting on October 29, 2026, to consider and approve unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026. The company had disclosed the planned Board meeting on October 22, when it also said its trading window would remain closed. The September quarter is the second quarter of FY27 and follows a June quarter in which the retail-focused non-banking finance company reported growth in income and disbursements.

The company has scheduled its Q2 FY27 earnings conference call for October 30, 2026. The call is expected to provide management commentary on lending growth, funding costs, asset quality and the progress of its retail lending strategy. IndoStar operates in segments including Used Commercial Vehicles and Affordable Housing Finance.

Reported quarterly financial performance

Available result information states that IndoStar Capital Finance posted consolidated net profit of ₹13.1 crore in Q2 FY27. This was described as a 25.7% year-on-year increase from ₹10.5 million in the corresponding quarter of the previous year. The prior-period figure is presented as reported in the source information and uses a different unit from the current-period figure.

Net interest income, or NII, was reported at ₹242.3 crore, compared with ₹190.1 crore in Q2 FY26. That represents year-on-year growth of 27%. NII is a key operating measure for lenders because it reflects interest earned on loans after interest paid on borrowings.

Revenue figure requires confirmation

Market alerts cited Q2 revenue of ₹382 crore, against ₹356 crore in the year-earlier period. This comparison indicates growth of about 7.3%, but the revenue numbers were specifically described in the source alert as not independently verified. Investors should therefore treat them as market-alert figures rather than confirmed company disclosures.

For context, IndoStar reported total income of ₹364 crore in the June 2026 quarter, compared with ₹344 crore a year earlier. Its reported FY26 income was ₹1,393 crore, while the preceding four reported quarters together were stated at ₹1,414 crore. Total income and revenue may not be presented on an identical basis across different data sources.

Key Q2 FY27 figures

NCD issue adds to funding resources

During the quarter ended September 30, 2026, IndoStar raised ₹400 crore through Non-Convertible Debentures, or NCDs. NCDs are debt instruments used by companies to raise funds from investors and institutions. For an NBFC, the mix and cost of borrowings are important because they influence the spread between lending yields and funding expenses.

Earlier management guidance referred to repayment of ₹250 crore of high-cost borrowing in Q2 and a target of bringing on-book borrowing cost near 9.0% by March FY27. The Q2 NCD issuance is a reported funding development, while the borrowing-cost objective remains a management target rather than a confirmed outcome.

Retail lending remains the operating focus

The company’s Q1 FY27 disbursements were ₹1,235 crore, up 44% year-on-year. Management had indicated an objective of growing disbursements at 35.0% annually over the three years to FY29. It also referred to expected July-to-September disbursement growth of at least 35.0% year-on-year, based on July trends.

IndoStar’s previous updates identified Used Commercial Vehicles and Affordable Housing Finance as core retail segments. It also outlined plans to launch Micro LAP products in Uttar Pradesh, Assam and Bihar during August and September. LAP refers to loans against property.

Q1 performance provides context

In the quarter ended June 30, 2026, IndoStar reported total income of ₹364 crore, up 5.8% from ₹344 crore a year earlier. Net profit for that quarter was ₹11.0 crore, compared with ₹546 crore in the prior-year quarter, a decline of 98.0% according to the reported figures. Another update described Q1 consolidated profit after tax at ₹11.5 crore as the company turned profitable as credit costs eased.

The Q1 disclosures also put assets under management at ₹8,244 crore. Changes in disbursements, AUM, credit costs and borrowing costs will be relevant for assessing how the September-quarter performance developed.

Market implications and investor focus

The reported 27% increase in NII suggests higher interest income generation in the September quarter. However, investors will need the detailed financial statements and management call to assess whether the improvement was supported by loan growth, lower funding costs, changes in yields, or a combination of these factors.

The ₹400 crore NCD issue highlights the importance of funding access as the company expands its retail loan book. Asset quality indicators, including gross non-performing assets and credit costs, will also remain important because management has linked new-book growth to expected improvement in headline GNPA and credit costs.

What to watch after the results

The October 30 earnings call is the next scheduled event following the Board meeting. Management commentary on the Q2 disbursement trend, NCD funding, high-cost debt repayment, AUM growth and the status of new retail products will provide further context. The company’s unaudited results and related disclosures remain the primary reference for investors reviewing the September-quarter performance.

IndoStar Capital Finance entered Q2 FY27 with stronger Q1 disbursements and has reported higher NII for the September quarter. Its funding actions and upcoming management discussion will be important for evaluating execution against its stated retail growth and borrowing-cost plans.