Press Release on Q4 FY 2025-26 : Financial Results
ARMANFIN · price
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Arman Financial Services, a Gujarat-based NBFC, reported consolidated AUM reaching an all-time high of ₹2,728 crore (up 21.5% YoY) with FY26 disbursements growing 42% to ₹2,433 crore, driven by strong momentum in the microfinance segment and stabilisation of the independent BCM model. However, revenue压力 remained visible with Gross Total Income declining 11.5% YoY to ₹646 crore and Pre-Provisioning Operating Profit falling 32.3% to ₹226 crore, reflecting elevated credit costs and increased field investments. Despite this, Profit After Tax grew 8.7% YoY to ₹57 crore for FY26, with Q4FY26 PAT surging 221.3% YoY to ₹41 crore, aided by a 46.4% YoY decline in ECL provisions to ₹48 crore and improving collection efficiency at 96.9%. Asset quality improved with consolidated GNPA at 3.43% and NNPA at 0.93%, while the capital adequacy ratio stood at 27.86%.
The sharp recovery in Q4 PAT and improving asset quality signal better days ahead, but the decline in operating profit margins and revenue reflects ongoing stress in the microfinance segment that investors should monitor closely.