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Star Housing Finance Limited (Star HFL), a BSE-listed home finance company specialising in low-cost retail housing finance, has reported notable financial growth for the fiscal year ending March 31, 2025. The company recorded a 54% increase in revenue, reaching INR 94.96 crores, and a 25% rise in profit after tax (PAT), amounting to INR 11.10 crores. Star HFL's assets under management (AUM) surged by 22% to INR 520.70 crores, driven by increased demand for affordable home loans. The company disbursed housing finance worth INR 148.60 crores to over 1,250 homebuyers across its operational geographies, while also executing its first direct assignment valued at INR 55.83 crores.
The BSE-listed home finance company Star Housing Finance Limited (Star HFL), which works in the low-cost housing finance industry, has announced significant financial growth for the fiscal year that ended on March 31, 2025. The firm, which is listed under BSE Scrip code BOM: 539017, witnessed a significant rise in assets under management (AUM) alongside stable asset quality. Advertisement
Star HFL reported total revenue of INR 94.96 crores for the twelve months ending March 31, 2025, representing a 54.06% increase compared to the previous financial year. Profit after tax (PAT) increased by 25% to INR 11.10 crores, up from INR 8.88 crores in FY2023-24. In the fourth quarter of FY2024-25, the firm recorded revenue of INR 27.89 crores and PAT of INR 2.93 crores, surpassing the fourth quarter of FY2023-24 when revenue stood at INR 19.34 crores and PAT was INR 2.74 crores.
AUM grew to INR 520.70 crores, reflecting a 21.98% rise year-on-year, driven by the demand for affordable housing loans in Star HFL's operational geographies. The company disbursed INR 148.60 crores in housing finance to over 1,250 homebuyers across more than 30 locations, including Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Tamil Nadu, and NCR.
Star HFL successfully executed its first direct assignment transaction worth INR 55.83 crores during the financial year. Interest income saw a 47.22% year-on-year increase, while the net interest margin (NIM) stood at 7.69%. The firm also maintained stable asset quality with gross non-performing assets (GNPA) at 1.84% and net non-performing assets (NNPA) at 1.40% as of the end of the financial year.
On the liabilities front, Star HFL raised INR 145 crores from two banks and six financial institutions to support its loan book expansion. The company's net worth reached INR 143.87 crores, while leverage levels stood at 2.81x.
Commenting on the performance, Kalpesh Dave, Director & CEO, stated that the firm successfully navigated a challenging year for mid and small retail lending institutions, characterised by liquidity constraints and subdued capital market activity. He attributed the AUM growth to the company's strong liability framework and increased disbursements, while also highlighting the successful execution of the direct assignment transaction as a testament to the firm's underwriting capabilities. Dave emphasised that the firm remained focused on maintaining asset quality, expanding its network through quality manpower, and identifying potential micro-markets for future growth.
The financial performance indicators for FY2024-25 include a 23.71% increase in profit before tax (PBT) to INR 14.19 crores, a 26.07% rise in outstanding borrowings to INR 403.81 crores, and an 8.02% return on equity (ROE). The return on assets (ROA) stood at 2.12%, slightly lower than the 2.29% reported in the previous financial year.
Star HFL, which has been operational in the low-cost housing finance segment since its inception, continues to provide long-term housing finance to economically weaker sections (EWS) and low-income groups (LIG) for the purchase or construction of affordable housing units. The company is a registered Primary Lending Institution (PLI) under the Pradhan Mantri Awas Yojana (PMAY) and has its registered and corporate office in Mumbai, Maharashtra.
The successful execution of its first direct assignment highlights the firm's robust underwriting capabilities, while the continued focus on affordable housing finance in underserved markets reflects its commitment to inclusive growth. As the company eyes FY2025-26 with optimism, it remains positioned to leverage its expanding network and strong financial base to scale up its operations.
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