Arman Financial Services Reports Strong Q1 FY27 Results, Highest-Ever AUM Reaches INR 2,925 Crore

Arman Financial Services Reports Strong Q1 FY27 Results, Highest-Ever AUM Reaches INR 2,925 Crore​

Arman Financial Services Limited, a Gujarat-based Non-Banking Financial Company (NBFC), has announced its financial results for the quarter ended June 30, 2026. The company, which operates across microfinance, MSME loans, two-wheeler loans, solar loans, and Loan Against Property (LAP), recorded consolidated Assets Under Management (AUM) of INR 2,925 Crore, marking a record high for the organization.

The financial performance details were released on August 12, 2026.

Consolidated Business Performance Highlights​

For Q1 FY27, Arman Financial Services reported significant growth across key metrics. The company's consolidated AUM stood at INR 2,925 Crore as of June 30, 2026. Disbursements for the quarter reached INR 686 crore, achieving a 76% year-on-year (YoY) increase from the INR 390 crore disbursed in Q1 FY26, reflecting strengthening credit demand.

The Net Total Income for Q1 FY27 was INR 138 crore, while Pre-Provisioning Operating Profit (PPoP) stood at INR 77 crore. The Profit After Tax (PAT) for the quarter was INR 45 crore, showing a 10% Quarter-on-Quarter (QoQ) growth compared to INR 41 crore in Q4 FY26. Shareholders' Equity as of June 30, 2026, stood at INR 979 Crore.

The performance metrics for the consolidated entity are detailed below:

Financial Health and Asset Quality​

In terms of financial health, total borrowings stood at INR 2,403 Crore (including off balance sheet direct assignment liability). The sources for these borrowings include banks (29.1%), NBFCs & FIs (15.7%), NCDs (35.7%), and direct assignments (18.2%).

The company maintained a healthy Liquidity position as of June 30, 2026, with INR 286 Crore in cash/bank balance, liquid investments, and undrawn CC limits. Furthermore, the company holds INR 335 Crore in undrawn sanctions from existing lenders.

Asset quality metrics for the consolidated portfolio are as follows:

• Gross Non-Performing Assets (GNPA) stood at 2.76%.
• Non-Performing Assets (NNPA) stood at 0.84%.
• Cumulative Provisions totaled INR 72 Crore, covering 2.5% of the consolidated AUM.

Segment Performance Review​

Arman Financial Services conducts its business through various segments, including a standalone portfolio and the microfinance division, Namra.

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

The standalone segment reported Assets Under Management (AUM) of INR 758 Crore for Q1 FY27, up 25.9% YoY from INR 602 crore in Q1 FY26. Gross Total Income reached INR 66 crore, marking a 29.9% YoY increase. Profit After Tax improved by 48.2% QoQ to INR 15 crore, compared to INR 12 crore in Q1 FY26.

Performance metrics for the standalone business:

The segment's GNPA stood at 3.35% for MSME, 3.50% for Two-Wheeler, and 1.52% for LAP.

Microfinance Segment (Namra)​

Namra reported a strong performance with AUM reaching INR 2,167 Crore in Q1 FY27, reflecting a 39.4% growth YoY from Q1 FY26. Gross Total Income reached INR 138 crore, up 35.3% YoY and 17.7% QoQ.

Financial details for the microfinance segment:

GNPA for the microfinance segment stood at 2.59%, and NNPA was reported at 0.89%. Namra maintained a capital adequacy ratio of 38.83% as on June 30, 2026.

Management Commentary​

Aalok Patel, Vice Chairman & Managing Director of Arman Financial Services, commented on the results, stating that Q1 FY27 was an encouraging start to the year and reflected improvements in the operating environment begun in the second half of FY26. He noted that collection trends remained stable, and new delinquencies had moderated.

Patel highlighted that AUM stood at INR 2,925 Crore, reflecting a 35.7% growth year-on-year. Disbursements for Q1 were INR 686 Crore, surpassing the highest first-quarter disbursements ever recorded by the company.

Regarding portfolio management, Patel stressed that growth was not achieved at the expense of quality. He pointed to the collection efficiency rate of 96.6%, and GNPA and NNPA improving to 2.76% and 0.84% respectively. Furthermore, he mentioned that 94.16% of the Microfinance portfolio was covered under the CGFMU scheme.

On a financial note, PAT for the company reached INR 45 crore, compared to a loss of INR 15 crore in Q1 FY26. Patel stated that Arman remains comfortably capitalized at 33.57%, while Namra holds a capital adequacy ratio of 38.83%.

ARMANFIN Stock Price Movement​

On Wednesday, shares of Arman Financial Services Limited edged higher by 0.19%, settling at a close price of ₹2011 after trading in the financial services sector. The equity saw an intraday range between a low of ₹1954.2 and a high of ₹2073.9, with a total traded volume of 54,184 shares recorded for the session.