AUM
₹2,274 Cr
+7% QoQ
Consolidated assets under management grew sequentially, driven by calibrated disbursements.
ARMANFINANCIAL
Other
10 Feb 2026
Arman Financial Services Limited — Q3 FY26
Arman Financial reported a strong sequential recovery in Q3 FY26, with consolidated AUM growing 7% QoQ to ₹2,274 crore and disbursements surging 30% QoQ to ₹612 crore.
✓ Verified against BSE filing
2-Min Summary
Arman Financial reported a strong sequential recovery in Q3 FY26, with consolidated AUM growing 7% QoQ to ₹2,274 crore and disbursements surging 30% QoQ to ₹612 crore. The MFI subsidiary returned to profitability after four quarters of losses, posting PAT of ₹13 crore, driven by a sharp decline in impairment costs from ₹76 crore in Q3 FY25 to ₹26 crore. Asset quality improved with GNPA at 3.44% (vs 4.13% YoY) and collection efficiency at 96.3%. Management guided for ~25% growth in FY27, emphasizing calibrated expansion and product innovation (individual loans, solar financing). Key risk: rising rejection rates (still ~77%) and shrinking borrower pool due to past defaults could constrain growth.
Key Numbers
Disbursements
₹612 Cr
+30% QoQ
Disbursements accelerated across segments, reflecting improved demand and confidence.
Collection Efficiency (MFI)
96.4%
+0.4pp QoQ
December collection efficiency improved, with X-bucket collections at 99.3%.
GNPA (MFI)
3.44%
-69bps YoY
Gross NPA improved from 4.13% a year ago, reflecting better underwriting and recoveries.
Management Guidance
FY27 growth target of ~25%
Management expects consolidated AUM growth of around 25% in FY27, driven by calibrated expansion across segments.
growthOpex ratio target of 4.5-5%
Management aims to bring consolidated opex ratio to 4.5-5% as portfolio scales, down from current elevated levels.
marginsSolar loan monthly disbursement target of ₹1 crore by March 2026
The pilot solar loan product aims to reach monthly disbursements of ₹1 crore by end of Q4 FY26.
growthKey Risks
Shrinking borrower pool due to past defaults
Rejection rates remain high (~77%) as past defaulters are auto-rejected, reducing the addressable customer base.
medium · management_commentaryPotential overleveraging in micro LAP segment
Analyst raised concern about customer overleveraging in micro LAP; management acknowledged risk but relies on strong underwriting.
medium · analyst_questionSustained low borrower cash flows
Borrower cash flows on the ground remain subdued, which could pressure repayment behavior if economic conditions worsen.
medium · management_commentaryNotable Quotes
We are seeing clean broad-based recovery taking shape. Repayment behavior has improved across key geographies.
The future is in product innovation and better underwriting. If we can assess the customer better, we don't need them in a group.
We are past the most challenging phase and now on a steady path of recovery with improving fundamentals.