Arman Financial Services Limited has informed the Exchange about Investor Presentation
ARMANFIN · price
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Arman Financial Services filed its Q1FY26 investor presentation, reporting a consolidated loss of INR 15 crore versus a profit of INR 31 crore in Q1FY25, driven by a sharp rise in provisions to INR 67 crore. Assets under management declined 17% YoY to INR 2,156 crore, though disbursements grew 16% YoY to INR 387 crore. GNPA worsened slightly to 3.45% (NNPA 0.51%), and collection efficiency stood at 95.3%. The microfinance subsidiary Namra Finance posted a loss of INR 28 crore, hit by industry-wide overleveraging and high staff attrition in the MFI sector. The standalone business (MSME, 2W, LAP) remained profitable with PAT of INR 12.4 crore, up marginally YoY. Management outlined a long-term plan to rebalance the portfolio, targeting SME share to rise to 35% and MFI share to drop to ~60%, with an aim to deliver 5–6% post-tax ROA.
The Q1 loss and 17% AUM contraction highlight continued stress in the microfinance business, which is 71% of the book. However, the standalone non-MFI business is stable and profitable, and the company has healthy liquidity (INR 215+ crore) and strong capital adequacy (CRAR above 38%). Short-term stock sentiment may remain weak due to losses, but the strategic shift away from MFI and stable margins (NIM at 16%) provide some comfort for long-term holders.