Arman Financial Services Limited has stated strong financial and operational performance for the quarter ended 30 June 2026.
Consolidated Assets Under Management reached a record Rs 2,925 crore, registering 35.7 per cent year-on-year growth from Rs 2,156 crore in Q1 FY26 and 7.2 per cent growth over Rs 2,728 crore in Q4 FY26.
Gross Total Income increased 33.7 per cent year-on-year to Rs 202 crore, while Pre-Provisioning Operating Profit rose 38.5 per cent to Rs 77 crore. Profit After Tax stood at Rs 45 crore, compared with a loss of Rs 15 crore in the year-ago quarter and Rs 41 crore in Q4 FY26, representing 10.1 per cent sequential growth.
Consolidated disbursements reached Rs 686 crore during the quarter, the company’s highest-ever first-quarter disbursement, growing 76 per cent year-on-year from Rs 390 crore. The company attributed the growth to an improving operating environment and strengthening credit demand across key segments.
Net Total Income stood at Rs 138 crore during Q1 FY27, while shareholders’ equity stood at Rs 979 crore as of 30 June 2026.
Arman Financial Services maintained a diversified borrowing profile, with total borrowings of Rs 2,403 crore, including off-balance-sheet direct assignment liabilities. The company had Rs 286 crore in cash and bank balances, liquid investments and undrawn cash credit limits, along with Rs 335 crore of undrawn sanctions from existing lenders.
Collection efficiency stood at 96.6 per cent during the quarter. Consolidated GNPA stood at 2.76 per cent and NNPA at 0.84 per cent, with cumulative provisions of Rs 72 crore as of 30 June 2026.
The company’s standalone business covering MSME, two-wheeler, loan against property and solar loans reported AUM of Rs 758 crore, up 25.9 per cent year-on-year. Gross Total Income increased 29.9 per cent to Rs 66 crore, while Profit After Tax rose 17.2 per cent year-on-year to Rs 15 crore.
Within the standalone portfolio, MSME AUM stood at Rs 573 crore, two-wheeler AUM at Rs 93 crore, LAP AUM at Rs 90 crore and solar loans at Rs 3 crore. The segment reported total disbursements of Rs 156 crore during the quarter.
The microfinance business, Namra, also recorded strong growth. Its AUM increased 39.4 per cent year-on-year to Rs 2,167 crore, while Gross Total Income rose 35.3 per cent to Rs 138 crore. Pre-Provisioning Operating Profit increased 64.1 per cent to Rs 52 crore.
Namra reported Profit After Tax of Rs 30 crore in Q1 FY27, compared with a loss of Rs 28 crore in Q1 FY26. Its ECL provisions declined 48.1 per cent year-on-year to Rs 43 crore. The business had approximately 4.9 lakh active MFI customers, while GNPA stood at 2.59 per cent and NNPA at 0.89 per cent.
Commenting on the performance, Aalok Patel, Vice Chairman and Managing Director, Arman Financial Services, said the quarter marked an encouraging start to FY27, with the improvement in the operating environment continuing from the second half of FY26.
Patel said the company’s AUM growth and record first-quarter disbursements were supported by healthy traction in the Individual Loan portfolio. He also highlighted the company’s focus on strengthening underwriting, monitoring and collection processes.
According to Patel, collection efficiency stood at 96.6 per cent, while GNPA and NNPA improved to 2.76 per cent and 0.84 per cent, respectively. He added that 94.16 per cent of the microfinance portfolio was covered under the CGFMU scheme as of 30 June 2026.
Patel said the company remains focused on calibrated growth, prudent risk management and portfolio quality while continuing to strengthen operating efficiency and profitability. He also noted that macroeconomic factors, including the situation in West Asia and concerns around a weaker monsoon due to El Niño, had not yet resulted in material deterioration in repayment behaviour.
Arman Financial Services said it will continue to focus on disciplined execution, prudent risk management and building a larger, diversified and sustainable lending franchise through FY27.
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