Star Housing Finance Reports Strong FY2024–25 Performance with 25% Net Profit Growth

Pune | May 7, 2025 Star Housing Finance Limited (Star HFL), a BSE-listed retail home finance company (BSE Code: 539017), has announced its annual financial results for FY2024–25, showcasing robust growth across key financial metrics including Assets Under Management (AUM), revenue, and net profit.

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Impressive Growth Across the Board

In a year that posed challenges for small and mid-sized lenders, Star HFL has emerged with an impressive performance. For the fiscal year ending March 31, 2025, the company recorded a total revenue of ₹94.96 crore, reflecting a 54.06% year-on-year growth. Net profit (PAT) rose by 25% to ₹11.10 crore, up from ₹8.88 crore in FY2023–24.

The company’s Assets Under Management (AUM) increased by 21.98% to ₹520.70 crore, compared to ₹426.86 crore in the previous year. This growth is attributed to rising demand for affordable housing finance in Star HFL’s operational geographies, including Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Tamil Nadu, and the NCR region.

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Strong Q4 Performance Caps Off the Fiscal Year

In Q4 of FY2024–25, Star HFL posted revenue of ₹27.89 crore and a PAT of ₹2.93 crore. This marks a notable improvement from Q4 of the previous year, which saw ₹19.34 crore in revenue and ₹2.74 crore in PAT.

This consistent quarterly growth reflects Star HFL’s disciplined underwriting practices, expanding customer base, and increasing acceptance in the affordable housing finance sector.

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Milestones in Disbursement and Assignments

During FY2024–25, Star HFL disbursed loans worth ₹148.60 crore, providing affordable home finance to over 1,250 first-time homebuyers across 30+ locations. This reaffirms the company’s commitment to empowering EWS/LIG (Economically Weaker Sections / Low-Income Groups) families through accessible and sustainable financing options.

Significantly, Star HFL completed its first-ever Direct Assignment transaction worth ₹55.83 crore, marking a major milestone in its strategic funding initiatives and showcasing institutional confidence in the company’s credit quality.

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Healthy Revenue and Profit Margins

The company reported a 47.22% increase in interest income, with a Net Interest Margin (NIM) of 7.69% — one of the healthier margins in the retail housing finance space. This growth was supported by a sound liability management framework and prudent cost control.

Star HFL raised ₹145 crore in debt during the year from two banks and six financial institutions. The company continues to nurture strong relationships with its banking partners, helping build a robust pipeline to support future loan book expansion.

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Stable Asset Quality and Strong Capital Position

Despite expanding its loan book, Star HFL maintained stable asset quality. As of March 31, 2025, Gross Non-Performing Assets (GNPA) stood at 1.84%, and Net NPA at 1.40%, indicating effective credit risk management.

The company reported a net worth of ₹143.87 crore and a leverage ratio of 2.81x, providing a solid capital base to support future growth. The Return on Equity (ROE) improved to 8.02% from 7.42% the previous year.

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Leadership Perspective: Building on Resilience

Commenting on the results, Mr. Kalpesh Dave, Director and CEO of Star HFL, said:

“Star HFL has navigated a challenging year for retail lenders, marked by tight liquidity and limited capital market activity. Despite this, our robust liability strategy and strong disbursement performance helped us scale our AUM. Completing our first direct assignment validates our underwriting strength. We’ve remained vigilant on asset quality, expanded our human capital, and explored emerging micro-markets. Looking ahead to FY2025–26, we are optimistic about delivering sustainable growth through our balanced approach.”

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Star HFL at a Glance

Star Housing Finance Limited is a BSE-listed retail home finance company focused on the affordable housing segment. Since inception, the company has remained dedicated to serving EWS and LIG families by providing long-term housing finance solutions.

Star HFL is registered as a Primary Lending Institution (PLI) under the Pradhan Mantri Awas Yojana (PMAY) and operates in key Indian states including Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, NCR, and Tamil Nadu. Its corporate and registered office is located in Pune, Maharashtra.