Stock Report

Arman Financial Services Ltd announces Q4, FY26 results

Posted On : 2026-05-28 16:44:12( TIMEZONE : IST )

Arman Financial Services Limited (NSE: ARMANFIN, BSE: 531179), a Gujarat-Based Non-Banking Financial Company (NBFC), with interests in microfinance, micro-enterprise (MSME) loans, two-wheelers loans, solar loans and Loan Against Property (LAP) announced its audited financial results for the quarter and full year ended 31st March 2026. The financial numbers are based on Ind-AS.

Consolidated Business Performance:

- Consolidated Asset Under Management (AUM) reached an all-time high to ~INR 2,728 Crore

- Consolidated disbursements for FY26 stood at ~INR 2,433 crore, compared to ~INR 1,713 crore in FY25, registering a strong year-on-year growth of 42%.

- This growth was driven by improving on-ground demand and stabilization of the independent BCM model in the microfinance segment.

- Highest ever quarterly disbursements of ~INR 951 Crore in Q4FY26, a growth of 75% on year-on-year basis and 54% on sequential basis

- Net total income for FY26 amounted to ~INR 440 Crore, whereas Pre-Provision Operating Profit (PPoP) for stood at INR 226 Crore

- Profit After Tax for FY26 stood at INR 57 Crore, reporting a growth of 9% year-on-year

- For Q4FY26 profit after tax stood at INR 41 Crore, a growth of 221% on sequential basis

- Shareholders' Equity as of March 31, 2026, stood at ~INR 933 Crore

Commenting on the Company's performance, Mr. Aalok Patel, Vice Chairman & Managing Director, Arman Financial Services said, "After several challenging quarters marked by elevated credit stress and a cautious lending environment, I am pleased to report that Arman Financial has once again reached its peak Assets Under Management of INR 2,728 crore. While macroeconomic and sectoral challenges continue to persist, the industry is gradually witnessing improvement in business fundamentals, collection efficiencies, and overall portfolio performance.

Over these past few quarters, we undertook decisive structural changes to position the Company for sustainable, profitable growth. One of the most important steps we undertook was the complete separation of credit and recovery functions from branch operations. This change has now been successfully implemented across most branches and has led to better accountability, stronger monitoring, and improved collection efficiencies across the portfolio.

At the same time, we made meaningful changes to our underwriting approach by moving beyond traditional group-based assessment models towards more individual-level credit evaluation. We also strengthened our risk protection framework substantially, with over 90% of our microfinance portfolio now covered under the CGMFU scheme. These measures have helped improve portfolio resilience and reduce credit costs, even as the external environment continues to remain dynamic.

Our microfinance business reported an AUM of Rs. 1,999 crore during FY26, with disbursements significantly improving in the second half of the year. Asset quality also improved gradually, supported by stronger recovery efforts and tighter portfolio monitoring. Beyond microfinance, our MSME, Two-Wheeler, and LAP businesses continued to witness steady traction. On a standalone basis, AUM stood at Rs. 730 crore supported by demand across our operating geographies and consistent execution by our field teams. Asset quality in these businesses remained stable, and we continue to see these segments as important contributors to the Company's long-term growth.

Overall collection efficiency improved significantly to 96.9% in March 2026 supported by stronger field execution and improving borrower repayment trends. These improvements have come through a disciplined approach where we have maintained stricter underwriting standards and higher rejection rates to protect portfolio quality. While our investments in field teams, collection infrastructure, and monitoring have increased near-term costs, we believe this is essential to building a stronger, more sustainable business.

Looking ahead, while the broader macro environment may continue to remain uncertain at times, I believe the Company is in a much stronger position today than it was a year ago. We have adequate liquidity, a comfortable capital position, improving asset quality trends, and a team that has demonstrated resilience and execution capability through challenging periods.

Our focus going forward remains very clear to grow responsibly, maintain strong portfolio quality, improve operating efficiencies, and continue serving our customers with discipline and consistency. With improving collection trends, strengthening asset quality, and sustained demand across our lending businesses, we remain confident about the opportunities ahead".

Shares of Arman Financial Services Limited was last trading in BSE at Rs. 1801.50 as compared to the previous close of Rs. 1750.30. The total number of shares traded during the day was 2941 in over 336 trades.

The stock hit an intraday high of Rs. 1900.00 and intraday low of 1759.55. The net turnover during the day was Rs. 5287483.00.