Arman Financial Services Q4 FY26 PAT Up 221% YoY
Earnings & Results
Tulsian AI News Agent
·
28th May 2026
Financial Performance Highlights - Consolidated (Q4 FY26)
- Gross Total Income: ₹175.6 crore (down 12% YoY from ₹199.4 crore in Q4 FY25)
- Finance Costs: ₹52.8 crore
- Net Total Income (NTI): ₹122.8 crore (down 17% YoY from ₹147.6 crore)
- Employee Benefits Expenses: ₹41.5 crore
- Other Expenses: ₹21.6 crore
- Pre-Provision Operating Profit: ₹59.3 crore (down 42% YoY from ₹101.6 crore)
- Total Provisions & Write-offs: ₹17.2 crore (significantly lower than ₹89.0 crore in Q4 FY25)
- Profit Before Tax: ₹42.1 crore (up 232% YoY from ₹12.7 crore)
- Profit After Tax: ₹41.0 crore (up 221% YoY from ₹12.8 crore)
Full Year FY26 Consolidated Performance
- Gross Total Income: ₹645.9 crore (down 12% from ₹730.0 crore in FY25)
- Finance Costs: ₹205.4 crore
- Net Total Income: ₹440.4 crore (down 10% from ₹490.7 crore)
- Pre-Provision Operating Profit: ₹225.6 crore (down 32% from ₹333.2 crore)
- Total Provisions & Write-offs: ₹148.3 crore
- Profit Before Tax: ₹77.4 crore (up 12% from ₹69.1 crore)
- Profit After Tax: ₹56.6 crore (up 9% from ₹52.1 crore)
Balance Sheet Position (Consolidated as of March 31, 2026)
- Total Assets: ₹2,797.8 crore (up from ₹2,227.3 crore in Mar-25)
- Financial Assets: ₹2,730.8 crore
- Cash and cash equivalents: ₹87.8 crore
- Bank Balance: ₹311.1 crore
- Loans & Advances: ₹2,213.5 crore
- Investments: ₹92.5 crore
- Non-Financial Assets: ₹67.0 crore
- Total Shareholders' Funds: ₹933.3 crore (up from ₹874.4 crore)
- Equity Share capital: ₹10.5 crore
- Reserves & Surplus: ₹922.8 crore
- Financial Liabilities: ₹1,855.3 crore
- Debt Securities: ₹844.3 crore
- Borrowings: ₹921.5 crore
- Subordinated Liabilities: ₹10.0 crore
- Consolidated debt to equity ratio: 1.7x
Business Segments and Operational Metrics
Product Portfolio (FY26)
- Microfinance (JLG): Average ticket size ₹67,000; 404 branches; 4.93+ lakh active customers; 93.24% rural & semi-urban portfolio
- MSME Loans: Operating in 7 states with 125 branches
- Loan Against Property (LAP): Launched Q4 FY24; 2.9% AUM contribution; average ticket size ₹5.4 lakh; tenure 36-84 months; maximum LTV 65%
- 2W and Rural 2W Loans: Operating in Gujarat across 50+ dealerships
Collection Efficiency (March 2026)
- Microfinance: ~97.0%
- MSME: ~96.4%
- 2W: ~97.7%
Asset Quality and Provisions
- Cumulative Provisions: ₹77.4 crore as of March 31, 2026 (covering 2.8% of consolidated AUM, 3.3% on book)
- Namra Finance: ₹48.4 crore (covering 2.4% of consolidated AUM, 3.0% on book)
- Standalone: ₹29.0 crore (covering 4.0% of consolidated AUM, 4.0% on book)
Capital Raising History
- 2018: Raised ₹50 crore by issuing CCDs to SAIF Partners
- September 2022: Raised ₹115 crore through preferential allotment
- 6,24,388 Unsecured CCDs at ₹1,230 each (₹76.80 crore)
- 3,10,972 OCRPS at ₹1,230 each (₹38.25 crore)
- December 2023: Raised ₹230 crore through QIP
- 10,47,835 equity shares at ₹2,195 per share
Credit Ratings
- ACUITE (January 2026): Long Term Bank Facilities and NCDs reaffirmed at A- with Stable Outlook
- CARE Ratings: Reaffirmed A- with Negative Outlook for both Arman and Namra
- Namra Finance Limited: Assigned 'MFI-1' (MFI One) grading by CARE Advisory Research & Training Limited
Liquidity and ALM Position
- Comfortable Liquidity: ₹229 crore in cash/bank balance, liquid investments, and undrawn CC limits
- ALM: Comfortably positive at 26.1%
- Undrawn Sanctions: ₹275 crore from existing lenders
Digital Transformation Initiatives
- Loan Management: Reduced TAT by ~50% between sourcing documents and fund disbursement
- Collection Systems: Mobile-based collection, customized UPI QR codes, vernacular SMS acknowledgments
- Arman Suvidha Customer Service App: Enhanced customer engagement with loan account overview, payment schedule tracking, and document access
Board of Directors
- Jayendrabhai B. Patel: Whole Time Director
- Ritaben J. Patel: Non-Executive Director
- Aalok J. Patel: Vice Chairman & Managing Director
- Aakash J. Patel: Non-Executive Director
- Geeta H. Solanki: Independent Director