Arman Financial Services Limited — Updates, 14-08-2025: Press Release

Arman Financial Services reported a challenging Q1FY26. Consolidated AUM declined 16.9% to INR 2,156.1 Cr, resulting in a net loss of INR 14.6 Cr. This was primarily due to a 27% AUM drop and an INR 27.7 Cr loss in the Microfinance segment, where the company prioritized portfolio quality and enacted aggressive write-off policies. In contrast, standalone MSME, 2W, and LAP businesses showed resilience, with AUM up 29.5% to INR 602.2 Cr and INR 12.4 Cr profit. Operational changes and CGFMU cover for MFI disbursements are underway to strengthen the business, with overall collection efficiency at 95.5%.