Arman Financial Services Limited announced a comprehensive leadership transition following its board meeting held on February 12, 2026. The company implemented strategic management changes based on recommendations from the Nomination and Remuneration Committee, alongside releasing detailed Q3FY26 financial results and approving significant fundraising initiatives.

Leadership Restructuring and Transition

The board approved strategic leadership changes to enhance organizational effectiveness and ensure long-term continuity. These transitions reflect the company's commitment to strengthening its management structure while maintaining operational stability.

Founder's Vision and Strategic Direction

Jayendra Patel, the company's founder, released a comprehensive letter to stakeholders outlining the rationale behind the leadership transition. He emphasized that responsible institutions must plan leadership transitions thoughtfully and well in advance, stating that "leadership continuity is not an event; it is a process." The founder highlighted the company's 33-year journey from a modest basement office with three people to serving lakhs of customers across India with over 5,000 dedicated employees.

Patel expressed confidence in Aalok Patel's leadership capabilities, noting his 16-year tenure and instrumental role in shaping the company's long-term strategy, strengthening lending frameworks, driving digital transformation, and building scalable operating systems. He also acknowledged Vivek Modi's eight-year contribution in strengthening financial management, capital structure, and institutional relationships.

Strong Financial Performance Q3FY26

The company delivered robust financial results for Q3FY26, demonstrating consistent growth across key operational metrics while maintaining strong market positioning.

Strategic Fundraising Initiative

The board approved a significant capital raising program through Non-Convertible Debentures to support growth trajectory and strengthen the capital base.

Business Operations and Market Presence

Arman Financial Services operates as a Gujarat-based NBFC providing lending services in Two-Wheeler, Micro-Enterprise (MSME), Microfinance, and LAP segments. The company serves niche rural markets across 11 states through 523 branches and 50+ two-wheeler dealerships, covering 160 districts and serving approximately 6.2 lakh customers. The microfinance division operates through wholly-owned subsidiary Namra Finance Ltd, an NBFC-MFI.

On a consolidated basis, the company reported total income of ₹16,007.06 lakhs for Q3FY26 compared to ₹16,477.05 lakhs in the corresponding previous quarter. The consolidated net profit stood at ₹2,218.20 lakhs for the current quarter, representing significant improvement from the loss of ₹726.02 lakhs reported in Q3FY25.

Source: Company filings and official announcements

Arman Financial Services Limited has completed the allotment of non-convertible debentures worth ₹125 crores, marking a significant fundraising milestone for the financial services company. The Board of Directors approved the allotment through a circular resolution dated January 29, 2026, in compliance with SEBI regulations.

Debenture Issue Details

The company has allotted 125,000 listed, rated, senior, secured, transferable, redeemable non-convertible debentures through private placement. Each debenture carries a face value of ₹10,000, bringing the total issue size to ₹125,00,00,000.

Interest and Tenure Structure

The debentures offer an attractive coupon rate of 11.35% per annum, with interest payments scheduled quarterly. The first interest payment is due on April 29, 2026, with subsequent payments continuing until maturity.

Security and Redemption Terms

The NCDs are secured by a first ranking exclusive and continuing charge over the company's receivables, including present and future receivables free from encumbrances. The debentures will be redeemed at par through a structured schedule:

• January 29, 2028: Face value redemption of ₹3,000
• April 29, 2028: Face value redemption of ₹3,000
• July 29, 2028: Face value redemption of ₹4,000

Listing and Rating Information

The debentures are proposed to be listed on the Wholesale Debt Market Segment of BSE Limited. Acuite Ratings & Research Limited has assigned a rating of 'ACUITE A-' with stable outlook to these debentures. Vardhaman Trusteeship Private Limited serves as the trustee for the issue.

In case of payment default, the company will be liable to pay additional interest at 2% per annum over the applicable interest rate on outstanding principal amounts until the default is remedied.

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