Arman Financial Services Records Peak Assets Under Management at INR 2,728 Crore, Reports Q4 FY26 Results

Arman Financial Services Records Peak Assets Under Management at INR 2,728 Crore, Reports Q4 FY26 Results​

Arman Financial Services Limited, a Gujarat-based Non-Banking Financial Company (NBFC), has announced its audited financial results for the quarter and full year ended March 31, 2026. The company operates across microfinance, micro-enterprise (MSME) loans, two-wheeler loans, solar loans, and Loan Against Property (LAP) segments.

The financial performance details are presented in Indian Accounting Standards (Ind-AS).

Consolidated Financial Performance​

The company reported key consolidated figures, showing significant year-on-year growth in total asset under management (AUM).


Consolidated AUM reached an all-time high of INR 2,728 Crore. Furthermore, consolidated disbursements for FY26 stood at approximately INR 2,433 crore, representing a 42% year-on-year increase from INR 1,713 crore in FY25. The highest quarterly disbursements of approximately INR 951 Crore were recorded in Q4FY26, marking a 75% year-on-year and 54% sequential growth.

Net total income for FY26 amounted to approximately INR 440 Crore, with the Pre-Provision Operating Profit (PPoP) standing at INR 226 Crore. Profit After Tax (PAT) for FY26 reached INR 57 Crore, marking an 8.7% year-on-year increase. For Q4FY26, PAT was INR 41 Crore, showing a 221% sequential growth. As of March 31, 2026, Shareholders' Equity stood at approximately INR 933 Crore.

Segment Performance Highlights​

Microfinance Segment (Namra):
Namra’s AUM stood at approximately INR 1,999 Crore as of March 31, 2026. Disbursements for FY26 totaled approximately INR 1,798 Crore. Net Total Income for the year was INR 433 Crore, with PAT for FY26 at INR 13 Crore, reporting a 64.2% year-on-year growth. For Q4FY26, PAT was INR 29 Crore. Total ECL provisions declined by 46.4% year-on-year to INR 48 crore. The company reported a write-off (net of recovery) of INR 11 Crore during the quarter. Assets in this segment maintained a Gross NPA of 3.40% and a Net NPA of 0.95%.

MSME, Two-Wheeler, and LAP Segments:
The combined AUM for the MSME, Two-Wheeler, and LAP segments reached approximately INR 730 Crore. Total disbursements for these segments and Solar Loans amounted to approximately INR 636 Crore in FY26.
The financial metrics for these segments were:


Asset quality remained stable, with the LAP segment reporting a GNPA of 0.74% and NNPA of 0.32%.

Borrowing and Asset Quality Profile​

On March 31, 2026, total borrowings stood at approximately INR 2,225 Crore (including off balance sheet direct assignment (DA) liability). The borrowing mix was detailed as follows:


The company maintained a healthy liquidity position with INR 229 Crore in cash/bank balance, liquid investments, and undrawn CC/FDOD limits.

Regarding asset quality, the consolidated GNPA stood at 3.43% and NNPA stood at 0.93%. Cumulative Provisions as of March 31, 2026, were INR 77 Crore.

Management Commentary​

Aalok Patel, Vice Chairman & Managing Director, commented on the company's performance, noting that Arman Financial has reached its peak Assets Under Management of INR 2,728 Crore. He stated that structural changes were undertaken to position the company for profitable growth, including the complete separation of credit and recovery functions from branch operations.

The company also made changes to its underwriting approach by moving towards individual level credit evaluation, shifting beyond traditional group-based assessment models. These measures were aimed at improving portfolio resilience and reducing credit costs.

Patel highlighted that the improving collection efficiency to 96.9% in March 2026 was supported by stronger field execution and improving borrower repayment trends. He expressed confidence in the company's stronger position today due to adequate liquidity, a comfortable capital position, and improving asset quality trends.

ARMANFIN Stock Price Movement​

On Wednesday, Arman Financial Services Limited shares edged higher, closing at ₹1803.2, which represented a positive move of 2.85% for the trading day. The stock saw robust investor interest throughout the session, settling the day on a strong volume of 85,043 shares.