IndoStar's Strategic Divestiture Sparks New Era in Standalone Business Operations
IndoStar, a non-banking finance company in India, reported its June quarter financial results, highlighting a divestiture of its subsidiary, Niwas Housing Finance. This transition allows IndoStar to focus on vehicle finance and micro-loans while enhancing market penetration and capital efficiency, generating a notable gain from the divestiture.
- Country:
- India
IndoStar, a non-banking financial entity, recently reported its quarterly financial results, showcasing a major strategic shift. The company successfully divested its subsidiary, Niwas Housing Finance, receiving proceeds on July 17, 2025, and realized a one-time gain of ₹ 1,176 crore.
Now operating as a standalone NBFC, IndoStar will prioritize core segments, including Vehicle Finance and Micro Loans Against Property, marking a strategic move for deeper market penetration and improved capital efficiency.
In Q1 FY26, IndoStar Capital Finance Limited achieved a profit after tax of ₹ 535 crore, with assets under management growing 9%. The company has implemented new write-off policies and focused on recovery of written-off loans, illustrating a proactive approach to risk management.
(With inputs from agencies.)
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