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

Executive summary

• AUM reached a record INR 2,728 crore in FY 2026, up 22% year-on-year, with highest-ever quarterly disbursements of INR 951 crore and consolidated disbursements of INR 2,433 crore, up 42% year-on-year.

• Profit after tax for FY 2026 was INR 57 crore, up 9% 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, including separation of credit and recovery functions, improved accountability and collection efficiency.

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

Financial highlights

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

• Consolidated total income for FY26 was ₹73,004.39 lakhs, up from ₹64,586.57 lakhs year-over-year.

• Pre-provisioning operating profit for Q4 was INR 41 crore; full year at INR 143 crore.

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

• Consolidated net profit after tax for FY26 was ₹5,660.53 lakhs, compared to ₹5,207.32 lakhs in FY25.

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.

• OpEx targeted to reduce from 9% to 7% in FY 2027, with medium-term goal of 6%.

• MSME and LAP segments expected to grow 20-25% in FY 2027; 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.