Business Performance Highlights

Consolidated Performance (INR Crore)

  • Assets Under Management (AUM): ₹2,925 crore as of June 30, 2026 (highest-ever AUM)
  • Growth: 35.7% YoY (from ₹2,156 crore in Q1 FY26)
  • Growth: 7.2% QoQ (from ₹2,728 crore in Q4 FY26)
  • Disbursements: ₹686 crore in Q1 FY27 (highest-ever first quarter disbursements)
  • Growth: 76% YoY (from ₹390 crore in Q1 FY26)
  • Gross Total Income: ₹202 crore
  • Growth: 33.7% YoY (from ₹151 crore)
  • Growth: 14.9% QoQ (from ₹176 crore)
  • Pre-Provisioning Operating Profit (PPoP): ₹77 crore
  • Growth: 38.5% YoY (from ₹55 crore)
  • Growth: 30.5% QoQ (from ₹59 crore)
  • Profit After Tax (PAT): ₹45 crore
  • Comparison: Significant improvement from loss of ₹15 crore in Q1 FY26
  • Growth: 10% QoQ (from ₹41 crore in Q4 FY26)
  • Shareholders' Equity: ₹979 crore as of June 30, 2026

Borrowing & Liquidity Profile

  • Total Borrowings: ₹2,403 crore (including off balance sheet direct assignment liability)
  • Borrowing Composition:
  • 29.1% through banks
  • 15.7% through NBFCs & FIs
  • 35.7% through NCDs
  • 18.2% through direct assignments & off-balance-sheet liabilities
  • Remainder from DFIs and others
  • Liquidity Position: ₹286 crore in cash/bank balance, liquid investments, and undrawn CC limits
  • Undrawn Sanctions: ₹335 crore from existing lenders
  • ALM Position: Positive with continued access to diversified funding sources

Collection Efficiency

  • Overall Collection Efficiency: 96.6% for the quarter
  • Segment-wise Collection Efficiency (June 2026):
  • Microfinance segment: 96.9%
  • MSME segment: 96.4%
  • Two-wheeler segment: 97.7%

Asset Quality

  • Gross NPA (GNPA): 2.76%
  • Net NPA (NNPA): 0.84%
  • Cumulative Provisions: ₹72 crore as of June 30, 2026
  • Covers 2.5% of consolidated AUM
  • Covers 2.9% on book

Standalone Business Performance (Two-Wheeler, MSME, LAP, Solar Loans)

Financial Metrics (INR Crore)

| Particulars | Q1FY27 | Q1FY26 | YoY Growth | Q4FY26 | QoQ Growth |

| Assets Under Management | 758 | 602 | 25.9% | 730 | 3.9% |

| Gross Total Income | 66 | 51 | 29.9% | 60 | 9.3% |

| Pre-Provisioning Operating Profit | 24 | 23 | 3.4% | 16 | 50.3% |

| Profit After Tax | 15 | 12 | 17.2% | 10 | 48.2% |

Segment-wise AUM Breakdown

  • MSME AUM: ₹573 crore
  • Two-Wheeler AUM: ₹93 crore
  • LAP AUM: ₹90 crore
  • Solar Loans AUM: ₹3 crore
  • Total Disbursement: ₹156 crore in Q1FY27
  • Net Total Income: ₹46 crore (19% YoY growth)
  • Capital Adequacy Ratio: 33.57% as of June 30, 2026

Asset Quality (Standalone)

  • MSME: GNPA 3.35%, NNPA 0.59%
  • Two-Wheeler: GNPA 3.50%, NNPA 1.49%
  • LAP: GNPA 1.52%, NNPA 0.68%

Microfinance Segment (Namra Finance Ltd)

Financial Metrics (INR Crore)

| Particulars | Q1FY27 | Q1FY26 | YoY Growth | Q4FY26 | QoQ Growth |

| Assets Under Management | 2,167 | 1,554 | 39.4% | 1,999 | 8.4% |

| Gross Total Income | 138 | 102 | 35.3% | 117 | 17.7% |

| Pre-Provisioning Operating Profit | 52 | 32 | 64.1% | 41 | 26.0% |

| Profit After Tax | 30 | -28 | NA | 29 | 2.6% |

Operational Highlights

  • Disbursements: ₹530 crore in Q1 FY27
  • Net Total Income: ₹91 crore
  • ECL Provisions: Decreased by 48.1% YoY to ₹43 crore
  • Write-off (net of recovery): ₹20 crore during the quarter
  • Active MFI Customers: ~4.9 lakh
  • Asset Quality: GNPA 2.59%, NNPA 0.89%
  • Capital Adequacy Ratio: 38.83% as of June 30, 2026
  • CGFMU Scheme Coverage: 94.16% of Microfinance portfolio covered

Management Commentary

Mr. Aalok Patel, Vice Chairman & Managing Director, commented on the improved operating environment with stable collection trends and moderated fresh delinquencies. He highlighted the company's focus on strengthening underwriting, monitoring, and collection processes, including the separation of credit and recovery functions from branch operations. The management remains watchful of macroeconomic headwinds including the situation in West Asia and potential weaker monsoon due to El Niño, though no material deterioration has been observed yet.

Company Overview

Arman Financial Services Ltd. is an Ahmedabad-based Category B NBFC providing lending services primarily in Two-Wheeler, Micro-Enterprise (MSME), Microfinance, Solar and LAP segments. The Microfinance division is operated through its wholly owned subsidiary, Namra Finance Ltd (NBFC-MFI). The group serves rural markets in 11 states through 556 branches and 50+ two-wheeler dealerships across 188 districts, serving ~6.3 lakh customers.