Arman Financial Services Limited — PPTs, 14-11-2025: Investor Presentation

Arman Financial Services reported H1FY26 consolidated AUM of INR 2,130 Cr (down 13.6% YoY) and disbursements of INR 865 Cr (up 3.9% YoY). The company posted a consolidated loss after tax of INR 7 Cr for H1FY26, largely due to challenging conditions in the microfinance sector, including overleveraging and high staff attrition. This led to increased provisions and accelerated write-offs totaling INR 105 Cr.

Despite microfinance headwinds, the MSME and Loan Against Property (LAP) segments demonstrated strong growth, with MSME AUM reaching INR 473 Cr and LAP AUM at INR 75 Cr. The company's strategy involves further portfolio diversification, aiming to increase the MSME book to 35% and reduce the MFI book to 60% over time. Digital transformation via the Arman Suvidha app and enhanced underwriting practices are key growth drivers. Asset quality metrics stood at GNPA 3.69% and NNPA 0.53%, with a collection efficiency of 95.3%. Management's outlook focuses on sustained growth and achieving a 4-5% post-tax ROA by targeting underserved rural and semi-urban markets.