Arman Financial Services (ARMANFIN) Q4 25/26 earnings summary

Executive summary

• AUM reached a record INR 2,728 crore in FY26, up 21.5% year-on-year, with highest-ever quarterly disbursements and consolidated 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 ROAA of 2.28% and ROE of 6.26%.

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

• Structural changes included separating credit and recovery from branch operations and shifting to individual-level credit assessment, improving accountability and portfolio quality.

• Audited standalone and consolidated financial results for FY26 were approved with unmodified audit opinions.

Financial highlights

• Consolidated total income for FY26 was ₹73,004.39 lakhs, up from ₹64,586.57 lakhs year-over-year; net total income was INR 440.4 crore, down 10% year-over-year.

• Pre-provision operating profit for FY26 was INR 225.6 crore, a 32% decline year-over-year.

• Microfinance AUM at INR 1,999 crore, up 19% year-on-year; Q4 disbursements at INR 738 crore, up 88% year-on-year.

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

• Total consolidated assets as of March 31, 2026, stood at ₹2,79,781.02 lakhs, up from ₹2,22,731.65 lakhs a year earlier.

Outlook and guidance

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

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

• 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.

• Plans to increase the share of SME portfolio to 35% and reduce MFI book to ~60% over time.