Five-Star Business Finance Surges More Than 5% Following Q2 Profit Growth

Chennai, October 30, 2025: Five-Star Business Finance Ltd stock prices (NSE: FIVESTAR, BSE: 543663) soared more than 5% in Thursday’s trade. This surge came following the robust second-quarter earnings for FY26 announced by the company.

Based in Chennai, Five-Star Business Finance Ltd is an NBFC that offers secured loans to self-employed persons and small enterprises. The company listed on the exchanges in November 2022 and operates predominantly in southern India, with the objective of financing micro-entrepreneurs through mortgage-backed lending.

Stock Performance

As of 3:30 pm IST, the stock closed at ₹637.00, up 5.28% for the day. The stock opened at ₹606.00 and intra-day hit a high of ₹659.90 on the NSE and was one of the top gainers in the Nifty Smallcap 50 index.

Strong Q2 Earnings Drive Investor Optimism

The company reported a net profit of ₹286.1 crore in its Q2 FY26 results, a rise of 6.8% year-on-year from ₹267.9 crore last year during the corresponding period. Total income was up 14.3% at ₹806.5 crore and interest income at ₹773.1 crore compared to ₹679.2 crore. The growth was spearheaded by consistent loan disbursements and strong loan book. Earnings per share were up 6.1% at ₹9.72.

Key Drivers of the Rally

The rally in Five-Star’s share price was underpinned by continued expansion of small business and mortgage-backed loans, sound asset quality, and effective cost control. Institutional as well as retail investors reflected increased buying interest, an indication of confidence in the company’s operational performance and future prospects.

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations