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Star Housing Finance Limited announced its financial and business results for the quarter ending June 2025, reporting a 16% year-on-year growth in Assets Under Management (AUM) alongside an 11% increase in interest income. The company highlighted strong asset quality with Gross NPA at 1.65% and Net NPA at 1.13%. It also approved an increase in authorised share capital to INR 125 crores and plans to raise INR 50 crores through Non-Convertible Debentures.
Star Housing Finance Limited (Star HFL), a BSE-listed housing finance company focusing on semi-urban and rural markets, released its quarterly financial and business results for the period ending June 2025. Advertisement
The company reported a 16.01% year-on-year rise in Assets Under Management (AUM), which stood at INR 546.58 crores. During the same quarter, Star HFL disbursed INR 24.41 crores. Interest income grew by 11.01% year-on-year, while the Net Interest Margin (NIM) was recorded at 6.61%.
On the asset quality front, the Portfolio at Risk (PAR) stood at 5.18%, with Gross Non-Performing Assets (GNPA) at 1.65% and Net Non-Performing Assets (NNPA) at 1.13%. Profit before tax was INR 1.77 crores, and profit after tax stood at INR 1.38 crores for the quarter under review.
Borrowings amounted to INR 391.91 crores, with the company maintaining strong relationships with banks and financial institutions to support loan book growth. The liability pipeline was noted as robust and aligned with its business plans. The board also approved the issuance of Non-Convertible Debentures worth up to INR 50 crores.
The board recommended a final dividend of 10 paise per share, subject to shareholder approval at the forthcoming Annual General Meeting. The company?s net worth as of June 2025 stood at INR 145.43 crores, with leverage levels at 2.69x. The board further approved an increase in authorised share capital from INR 50 crores to INR 125 crores, pending shareholder approval.
In terms of credit ratings, Star HFL retained a BBB/Stable rating from both CARE Ratings and India Ratings, with India Ratings also affirming the proposed NCDs at BBB/Stable.
Commenting on the performance, Chief Executive Officer Kalpesh Dave stated that the company was carefully calibrating growth while preserving asset quality amidst challenging market conditions. He added that with credit offtake gradually improving, the company aimed to deploy funds through its branch network while continuing to focus on low-ticket housing customers, particularly first-time home buyers. He also indicated that efforts were underway to strengthen the capital base, subject to necessary approvals, in order to support future AUM expansion without compromising on asset quality.
With AUM and interest income both registering double-digit year-on-year growth, the company has demonstrated resilience in a competitive market.
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