Arman Financial Services Q2 PAT Soars 544% YoY

Total branches increased to 605 in Q2FY27 from 492 in Q2FY26, with microfinance branches at 466, MSME at 135, and 2W & Rural 2W at 4.
Live customer base stands at 50,000+ across 11 states and 184 districts.
4,300+ loan officers support operations.
Key drivers: Implementation of Branch Credit Manager (BCM) model, paperless eSign and cashless disbursements, and rigorous collections practices.

Microfinance Loans (via Namra Finance): AUM not specified in presentation; 5.05+ lakh active customers; average ticket size ₹80,000; operates in 11 states.
MSME Loans: AUM not specified; operates across 7 states (Gujarat, MP, Maharashtra, Rajasthan, Uttarakhand, Uttar Pradesh & Telangana); highest ROA product.
Two-Wheeler Loans: Operating only in Gujarat across 50+ dealerships; average ticket size ₹76,000 in Q2FY27.
LAP Loans: New product piloted in Q4FY24; average ticket size ₹5.3 Lakhs in Sep-26; operates in Gujarat, Telangana & Madhya Pradesh; maximum LTVs of 65%.

Consolidated Q2FY27: Revenue ₹234.6 Cr (47% YoY growth); EBITDA not explicitly stated; PAT ₹51.5 Cr (544% YoY growth).
Consolidated H1FY27: Revenue ₹436.4 Cr (41% YoY growth); PAT ₹96.7 Cr (vs loss of ₹6.6 Cr in H1FY26).
Standalone Q2FY27 (2W, MSME, LAP): Revenue ₹67.9 Cr (30% YoY growth); PAT ₹17.4 Cr (95% YoY growth).
Namra Finance Q2FY27 (Microfinance): Revenue ₹167.8 Cr (56.1% YoY growth); PAT ₹33.8 Cr (vs loss of ₹0.9 Cr in Q2FY26).
Margins: Yield ranges from 23.4% to 35.2% across segments; GNPA 2.73% (Sep-26 vs 3.69% Sep-25); NNPA 1.49%.
Drivers: Strong AUM growth, improved collection efficiency, moderated provisioning costs.
Key Risks: Raw material price hikes, regulatory risks not explicitly disclosed.

Domestic vs Export: Not explicitly specified.
Regional Breakdown: Microfinance operations in 11 states; MSME in 7 states; 2W only in Gujarat; LAP in Gujarat, Telangana & Madhya Pradesh.

Net Debt/Equity: Debt ₹2,136.2 Cr (Borrowings ₹1,277.3 Cr + Debt Securities ₹848.9 Cr + Subordinated Liabilities ₹10.0 Cr); Equity ₹1,032.9 Cr; implied debt-to-equity ~2.07x.
Reserves: ₹1,022.4 Cr.
Current Assets: Cash & cash equivalents ₹188.4 Cr; Bank Balance ₹301.5 Cr; Loans & Advances ₹2,610.5 Cr.
Current Liabilities: Not explicitly broken out.
Financial Health: CRAR at 36.26% for Arman and 37.19% for Namra; sufficient capital for growth.

Capital Expenditure: Not specified.
Free Cash Flow: Not specified.
Operating Cash Flow: Not specified.
Net Debt Movement: Not specified.
Investment Rationale: Focus on capacity expansion, technology upgrades not explicitly detailed.

Investments in Innovation: Arman Suvidha App for borrowers; BCM model for credit approval; proprietary credit tools.
Expected impact: Improved operational efficiency and customer engagement.
Strategic Rationale: Expanding into high-growth markets like LAP; reducing operational costs through digital processes.

Strategic Outlook: Focus on disciplined growth with stronger returns; optimize cost of funds; improve operating efficiency; drive sustainable improvement in ROA and ROE.
FY Guidance: Not explicitly provided.
Market Share Targets: Not specified.
Risks and Opportunities: Highlighted key risks managed including borrower over-leverage, sector events, new product scale-up, concentration risk, and funding/liquidity.

Not specified.