Arman Financial Services (ARMANFIN) investor relations material

Executive summary

• Achieved record consolidated AUM of INR 2,728 crore in FY26, up 22% year-on-year, with highest-ever quarterly disbursements of INR 951 crore and annual disbursements of INR 2,433 crore, up 42% year-on-year.

• Profit after tax for FY26 was INR 57 crore, up 8.7% year-on-year, with Q4 FY26 PAT at INR 41 crore, up 85% sequentially and 220% year-on-year; ROAA at 2.28% and ROE at 6.26%.

• Maintained strong asset quality with GNPA at 3.43% and NNPA at 0.93% as of March 2026.

• Structural changes included separation of credit and recovery functions and a shift to individual-level credit assessment, improving collection efficiency and portfolio quality but increasing operating costs.

• Audited standalone and consolidated financial results for FY26 were approved with unmodified audit opinions; no material deviations in use of proceeds from debt securities.

Financial highlights

• Microfinance AUM at INR 1,999 crore, up 19% year-on-year; MSME loans AUM at INR 554 crore; LAP loans AUM at INR 80 crore; Two-wheeler loans AUM at INR 94 crore.

• Consolidated total income for FY26 was INR 645.9 crore; net total income INR 440.4 crore; pre-provision operating profit INR 225.6 crore; net profit after tax INR 57 crore.

• Total consolidated assets as of March 2026 stood at INR 2,797.81 crore.

• Standalone AUM grew 30% year-on-year to INR 730 crore; MSME segment contributed 76% of portfolio.

• Total provisions and write-offs for FY26 were INR 148.3 crore, up 12% year-on-year.

Outlook and guidance

• Focus on responsible, disciplined growth with emphasis on portfolio quality over growth.

• Targeting AUM growth to INR 5,000+ crore in coming quarters, with plans to increase SME portfolio share to 35% and reduce MFI book to ~60%.

• Targeting cost-to-assets ratio reduction from 9% to 7% in FY27, with a medium-term goal of 6%.

• MSME and LAP segments expected to grow 20-25% in FY27; not pushing aggressive growth due to macro uncertainties.

• Revised and updated company policies to align with regulatory requirements and operational needs.