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.
bullish
high
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Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
75%Questions answered1Evaded / deflected12Questions audited
Partial answer
Medium priority
Percentage of loan book from FY26 disbursements
Asked by Kartik Shinas, Unifi Mutual Fund
Management gave a rough estimate but admitted the exact number is not readily available.
no exact number givenguesstimate provided
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Question
what will be the percentage of the loan book that would represent the loans raised in FI26?
Alok Patni (Managing Director)
Do you have that number? So not be readily available, Karthik. But generally if I give a good guesstimate, it will be sometimes about 70%.
Answered
High priority
Difference in collection efficiency calculation vs peers
Asked by Kartik Shinas, Unifi Mutual Fund
Management clearly explained the two types and provided their specific figure.
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Question
what would be the difference in the calculations or how do we compute vis-a-vis we collection efficiency?
Alok Patni (Managing Director)
there are two kinds of collection efficiencies which are reported. So one is typically called a zero bucket collection efficiency... the number that you are most likely seeing is the X bucket or the zero bucket collection efficiency for which ours is about 99.3%.
Evasive
Medium priority
Key changes to ECL model assumptions
Asked by Kartik Shinas, Unifi Mutual Fund
Management did not detail any changes to the ECL model, only mentioned management overlay.
no specific changes mentionedvague response
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Question
what are the key changes to your overlaying episode versus vis-a-vis as it is now and see this going forward?
Alok Patni (Managing Director)
In the ECL model you are saying yeah right in your assumptions the all we can do is provide more management overlay.
Answered
High priority
Will PCR come down due to CGFMU cover?
Asked by Kartik Shinas, Unifi Mutual Fund
Management confirmed PCR would decrease and explained the mechanism.
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Question
will your provision PCRs come down now that your 82% of your book is now covered by the scheme?
Alok Patni (Managing Director)
Yes, you're right because you paying for the default guarantee cover and you're covered for every 100 rupee... The default guarantee cover applies to about 75% of it.
Answered
High priority
Growth strategy given lender caps and high rejection
Asked by Kartik Shinas, Unifi Mutual Fund
Management provided a clear strategy focusing on product innovation and individual lending.
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Question
going forward what will be the strategy to grow then? So would you have to seek more and more penetration?
Alok Patni (Managing Director)
the future is in product innovation and better underwriting. If we are able to assess the customer better we don't need them in a group we can service them individually.
Partial answer
High priority
Comfortable growth rate for FY27
Asked by RDRA Kraija, I thought Financial Consulting
Management gave a number but qualified it as not a firm target.
figure described as 'throwing a figure in the air'not a firm target
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Question
what kind of growth rates would we be comfortable now the industry books has all been cleaned up?
Alok Patni (Managing Director)
I would say in FI27 roughly speaking I would be comfortable growing maybe 25% just throwing a figure in the air.
Answered
High priority
Will non-MFI book grow faster than MFI?
Asked by RDRA Kraija, I thought Financial Consulting
Management clearly stated non-JLG will grow faster.
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Question
would it be fair to assume that non-MFI book would grow at a much higher rate than MFI book going forward?
Alok Patni (Managing Director)
I would say that non-JLG will grow much much faster whether that is in the subsidiary Namra or in the standalone Arman through MSME LAP and two wheeler loans.
Answered
Medium priority
Peak debt-to-equity before raising equity
Asked by RDRA Kraija, I thought Financial Consulting
Management provided a specific target and current level.
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Question
what level of debt to equity would we be comfortable before getting into the market and raising more equity?
Alok Patni (Managing Director)
We are usually comfortable at about 4 and a half times which we are quite a distance from right now we our debt equity is less than two in fact less than one and a half.
Partial answer
Medium priority
Progress on LAP product pilots and scaling plans
Asked by Ron Cha, Orga Capital Advisor LLP
Management said it's doing well but did not confirm if internal benchmarks were met.
no specific benchmarks mentionedno timeline for scale-up
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Question
on the pilots which we were running especially on say LAP products... have we met internal benchmarks to now see a significant scale up?
Alok Patni (Managing Director)
the LAP is doing reasonably well... we are on schedule for whatever we had envisaged... we are looking at scaling it up in all these geographies where we're comfortable.
Answered
High priority
Credit demand and competition in MFI post-crisis
Asked by Ron Cha, Orga Capital Advisor LLP
Management clearly stated fewer competitors and provided qualitative assessment.
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Question
on ground credit growth demand... are the fintechs etc which were active still relevant as competition?
Alok Patni (Managing Director)
definitely there are lot fewer players serving the same customers... their overall presence in the markets that we are servicing is significantly lower.
Answered
High priority
Reason for sharp decline in 30-90 day PAR
Asked by Tinme Neymar, Preston Capital Investments
Management provided a clear breakdown of reasons.
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Question
what has led to such a sharp decline in the 30 to 90 book in the last two quarters?
Alok Patni (Managing Director)
the reduction is largely replacing bad customers with good customers. That's number one. That's probably 80% of the reason. The 20% is probably slightly better macroeconomics and better collection team.
Partial answer
Medium priority
Reason for OPEX increase and future ratio guidance
Asked by Serves Gupta, Maximal Company
Management explained reasons but gave only a vague target for OPEX ratio (4.5-5%).
no specific future ratio guidance givenonly qualitative direction
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Question
what has led to this sort of an increase in the OPEX and how we should look at OPEX ratios going forward?
Alok Patni (Managing Director)
OPEX has definitely increased... we added the whole BCM structure which is expensive... we have a big recovery team... CGFMU we have paid 7 this year.