Arman Financial Services (ARMANFIN) investor relations material

Executive summary

• Consolidated AUM reached INR 2,925 crore in Q1 FY27, up 36% year-on-year, with disbursements at INR 686 crore, the highest-ever for a first quarter.

• Profit after tax for Q1 FY27 was INR 45 crore, a turnaround from a loss in Q1 FY26, with total income at INR 202 crore.

• Collection efficiency for the quarter was 96.6%, with an active customer base of approximately 6.3 lakh.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved and reviewed by the Board and Audit Committee.

• 3,600 stock options granted under ESOP Plan 2023 to eligible employees, vesting over four years.

Financial highlights

• Gross total income for Q1 FY27 was INR 202 crore, up 34% year-on-year; net total income was INR 138 crore.

• Pre-provisioning operating profit (PPOP) rose to INR 77 crore from INR 59 crore in Q4 FY26.

• Profit after tax stood at INR 45 crore, compared to a loss of INR 15 crore in Q1 FY26 and INR 41 crore in Q4 FY26.

• Net worth (consolidated) as of June 30, 2026, stood at ₹97,889.10 lakhs.

• Basic EPS (consolidated) for Q1 FY27 was ₹42.96, compared to negative ₹13.90 in Q1 FY26.

Outlook and guidance

• Growth will remain calibrated and quality-focused, with ongoing monitoring of collections, early delinquencies, and macroeconomic conditions.

• Focus on expanding MSME portfolio to increase its share to 35% of AUM, while reducing microfinance share to ~60% over time.

• Credit cost is expected to remain around 3%-3.5%, possibly improving to 2.5% if conditions are favorable.

• OPEX ratio targeted to reduce to 7% by March, down from 8.5% currently.

• Continued emphasis on digital collections, with ~40% of collections now digital.