Arman Financial Services (ARMANFIN) Q3 25/26 earnings summary

Executive summary

• Leadership transition with Mr. Jayendra Patel moving to Whole Time Director, Aalok Patel as Vice Chairman and Managing Director (pending shareholder approval), and Vivek Modi as Executive Director and Group CFO, focusing on financial discipline and strategic execution.

• Achieved consolidated AUM of INR 2,274 crore in 9MFY26, with 6.8% quarter-on-quarter growth and a diversified retail lending portfolio across microfinance, MSME, two-wheeler, and LAP segments.

• Disbursements reached INR 1,482 crore, up 26.7% year-over-year, with a strong presence in 11 states and approximately 6.2 lakh active customers.

• Maintained high collection efficiency at 96% for 9MFY26, reflecting improved borrower repayment behavior and disciplined field execution.

• The company navigated industry challenges, including over-leveraging, regulatory changes, and macroeconomic pressures, leading to stronger risk management and operational discipline.

Financial highlights

• Consolidated AUM reached INR 2,274 crore, up nearly 7% sequentially; disbursements rose 30% sequentially to INR 612 crore.

• Gross total income for Q3 FY26 was INR 160 crore; nine-month income at INR 470 crore.

• Profit after tax for Q3 FY26 was INR 22.2 crore, a significant turnaround from a loss in Q3 FY25; nine-month PAT at INR 16 crore.

• Pre-provision operating profit (PPOP) for Q3 FY26 at INR 55 crore; nine-month PPOP at INR 166 crore.

• Cumulative provisions as of December 2025 were INR 74 crore, covering 3.2% of consolidated AUM.

Outlook and guidance

• Management targets calibrated, sustainable growth, emphasizing risk controls and product innovation.

• FY27 growth expected at around 25%, with non-JLG and non-MFI products projected to outpace JLG growth.

• Targeting AUM growth to INR 5,000+ crore in the coming quarters, leveraging recent capital raises and diversified lending segments.

• Plans to expand the SME portfolio to 35% of AUM and reduce microfinance share to ~60% over time.

• MSME book growth to remain steady, with focus on disciplined expansion and risk management.