Arman Financial Services Limited reported a consolidated net profit of ₹41 crore for the quarter ended March 31, 2026, a significant increase of 221% from ₹13 crore in the corresponding quarter of the previous year. The company's Assets Under Management (AUM) reached an all-time high of ₹2,728 crore, registering a growth of 21.5% year-on-year. Despite the profit surge, consolidated gross total income declined to ₹176 crore from ₹199 crore year-on-year, while total expenses reduced to ₹117 crore from ₹183 crore in the same period last year. The board approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 27, 2026.

Consolidated Business Performance

The company's profitability improved sharply in Q4FY26, driven by a reduction in total expenses and a significant drop in credit costs. Consolidated disbursements for FY26 stood at ₹2,433 crore, compared to ₹1,713 crore in FY25, registering a strong year-on-year growth of 42%. This growth was driven by improving on-ground demand and the stabilization of the independent BCM model in the microfinance segment. For the full year, consolidated net profit rose to ₹57 crore from ₹52 crore in FY25, while total gross income decreased to ₹646 crore from ₹730 crore.

Asset Quality and Liquidity

Collection efficiency for the month of March 2026 stood at 96.9%, with the microfinance segment reporting 97.0%. GNPA stood at 3.43%, while NNPA stood at 0.93% as of March 31, 2026. The company maintained a healthy liquidity position with ₹229 crore in cash and bank balances, liquid investments, and undrawn CC/FDOD limits. Additionally, the company has ₹275 crore in undrawn sanctions from existing lenders. The capital adequacy ratio stood strong at 27.86% as of March 31, 2026.

Segment Performance

The microfinance segment (Namra) reported an AUM of ₹1,999 crore, a growth of 18.6% year-on-year, with a profit after tax of ₹29 crore for Q4FY26 compared to a loss of ₹0.3 crore in the prior year. The MSME, Two-Wheeler, and LAP segments combined reported an AUM of ₹730 crore and a net profit of ₹10 crore for the quarter. The company expanded its footprint in Uttar Pradesh and Uttarakhand and launched the Solar Loan vertical to support future growth.

Arman Financial Services Limited has confirmed that its listed secured non-convertible debentures (NCDs) outstanding as of March 31, 2026, are fully secured. The company holds an exclusive charge on book debts, ensuring a security cover of 1.10 times the outstanding debt value based on book value calculations.

The disclosure was made to BSE Limited pursuant to Regulation 54 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing includes a certificate from the statutory auditor, Laxminiwas & Co., verifying the asset cover and compliance with financial covenants.

Auditor Certification

Laxminiwas & Co., the statutory auditor of Arman Financial Services Limited , provided limited assurance on the statement of security cover. The audit firm confirmed that the company has complied with the requirement to maintain 110% asset cover for debt securities amounting to ₹35,500.04 lakhs and 100% cover for debt securities of ₹4,200 lakhs.

The certificate is based on unaudited financial results and records as of March 31, 2026. The auditor verified that the information was accurately extracted from the company's books and that financial covenants were met.

Security Cover Details

The statement of security cover details the assets backing the debentures. The total book value of assets charged on an exclusive basis is ₹43,739.83 lakhs. This includes loans receivable under financing activities, property, plant and equipment, and investments.

The table below summarizes the security position as of March 31, 2026:

The company stated that the market value for certain assets, such as bank balances and debt service reserve accounts (DSRA), is not applicable, hence the carrying value was used for the calculation. The certificate was signed by CA Guharoy Ashish Kumar of Laxminiwas & Co. and Aalok Jayendra Patel, Managing Director of Arman Financial Services Limited.