Five-Star Business Finance Limited is an NBFC providing secured business loans to micro-entrepreneurs and self-employed individuals, primarily in South India. Their loans are secured by the borrower's property, ensuring a strong security foundation.

The company has shown resilience in stabilizing financial performance in Q2 FY 2026, maintaining robust collections efficiency, with unique customer collection stable at 95.1%.

In Q2 FY 2026, the company adopted stricter credit filters and controls, resulting in a higher loan rejection ratio of 41% compared to Q1's 25%, indicative of a more cautious credit underwriting approach.

Five-Star expanded their physical presence significantly by opening 33 new branches and employing 769 additional staff, setting the stage for future growth.

The company launched a new housing loan product in October 2025, aiming to cater to unmet demands and diversify their product offering, which could become a growth lever in future years.