Star Housing Finance Sees 25% Profit Growth in FY25

Star Housing Finance Limited (Star HFL), a BSE-listed company, reported a 25% increase in its profit after tax (PAT) for the financial year ending March 31, 2025. The PAT rose to ₹11.10 crore, compared to ₹8.88 crore in the previous financial year.

The company’s total annual revenue jumped to ₹94.96 crore, marking a strong 54% year-on-year growth.

In the last quarter of FY25, Star HFL earned ₹27.89 crore in revenue and posted a PAT of ₹2.93 crore, up from ₹19.34 crore and ₹2.74 crore in the same quarter of the previous year.

Star HFL’s assets under management (AUM) also grew significantly, rising by nearly 22% to ₹520.70 crore by the end of March 2025. This increase came from strong demand for affordable housing loans in states like Maharashtra, Gujarat, Tamil Nadu, Rajasthan, Madhya Pradesh, and the NCR region.

During FY25, the company disbursed ₹148.60 crore in housing loans, helping more than 1,250 homebuyers across 30+ cities. Star HFL also completed its first direct assignment deal, valued at ₹55.83 crore.

The company reported a 47% growth in interest income, and its Net Interest Margin (NIM) stood at a healthy 7.69%. Asset quality remained stable, with Gross NPA at 1.84% and Net NPA at 1.40%.

To fuel its expansion, Star HFL secured ₹145 crore in new funding from two banks and six financial institutions. Its net worth reached ₹143.87 crore, with a leverage ratio of 2.81x.

CEO Kalpesh Dave noted that despite challenges like tight liquidity and a slow capital market, the company stayed resilient. Star HFL continued to grow its loan book, kept its portfolio healthy, and expanded its footprint by hiring skilled professionals and entering new micro-markets.