Arman Financial Services Limited — Q4 FY26
Arman Financial reported a strong Q4 FY26 with consolidated PAT of ₹41 crore, up 220% YoY, driven by improved collections and lower credit costs.
bullish
medium
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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.
71%Questions answered2Evaded / deflected12Questions audited
Partial answer
High priority
Cost of borrowings trajectory for FY27 and NIM compression risk.
Asked by Rohan Meta, FCOM family office
Gave current and past costs but no specific FY27 trajectory or quantification.
no quantified trajectory for FY27qualitative outlook only
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Question
how should we think about your cost of borrowings trajectory for FI27 and what is your outlook for the same if you could also quantify it?
Aloc (MD)
borrowing costs have been steadily declining... average cost of borrowing continues to be approximately 12%... marginal cost in the last two quarters would have been about 11.75%.
Evasive
High priority
Stabilized NIM outlook for FY27 and recent repricing.
Asked by Rohan Meta, FCOM family office
Did not provide a NIM outlook; deflected to product mix changes.
no NIM outlook givenattributed to product mix
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Question
over last one to two months have you taken any repricing... what is your sort of stabilized NIM outlook for FI27?
Aloc (MD)
we have not adjusted the interest rates in the last quarter although we did in the previous quarter... product mix will affect yields.
Partial answer
High priority
ROA outlook for FY27 and drivers of improvement.
Asked by Rohan Meta, FCOM family office
Gave a range but declined to give an exact figure; still directional.
no exact figure givenrange provided but not committed
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Question
what is your outlook or aspirations on ROA for FI27 given that your margins now appear to have stabilized?
Aloc (MD)
we expect healthy growth in the ROA I don't want to place an exact figure... definitely 3 and a half 4% plus is sort of easy to expect.
Answered
High priority
OPEX cost-to-asset ratio trajectory and steady state.
Asked by Ronach Cher, Aura Capital
Provided current level and target for the year; addressed the question.
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Question
how should we think about cost to asset for the year and then at what scale of AUM do you think it goes to a steady state number?
Aloc (MD)
right now we are at one of the highest levels... around 9%... this year we are probably targeting to bring it around 7 odd%.
Answered
Medium priority
Growth outlook for MSME and LAP products.
Asked by Ronach Cher, Aura Capital
Provided specific growth targets for both products.
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Question
how should we think of the growth especially on the MSME side now that you're running it at a sizable amount?
Aloc (MD)
we can expect it to grow by 20 25% but not like a huge jump... MSME we are targeting somewhere around 25 odd% growth in FY27.
Evasive
High priority
Can FY27 cross peak profitability?
Asked by Ronach Cher, Aura Capital
Did not give a clear yes or no; avoided the question.
no commitmentvague answer
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Question
should F27 now actually in F27 can it cross our peak profitability also?
Aloc (MD)
I wish I could say yes or no. There are uncertainties... we'll get it close.
Answered
Medium priority
April and May collection efficiency trends and MFI/MSME outlook.
Asked by Kesha Carva, White Pine Investment Management
Provided specific trends and color on asset quality.
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Question
how the April and May collection efficiency trends were and going forward can you provide some color on how are you seeing the trends in MFI and MSME?
Aloc (MD)
disbursement volumes in April and May were lower than Q4... asset quality has been stable... not seen much drop in early delinquencies.
Partial answer
Medium priority
Collections in delayed buckets and possibility of interest reversals.
Asked by Shrinat V, Bell Weather
Gave qualitative improvement but no specifics on interest reversals.
no quantification of reversalsqualitative only
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Question
how collections are coming in the delayed buckets... any chance later this year that we'll start seeing some level of interest reversals?
Aloc (MD)
right of connections are fairly good... the harder buckets should consistently improve... customers are also getting choked for fresh credit.
Answered
High priority
Credit cost range for normalized FY27.
Asked by Bum Sha, Aquarius AMC
Confirmed the analyst's range and agreed on 3%.
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Question
assuming that FY27 is the normalized year how should we look at the credit cost should it be in range of 2.5-3% or more than that?
Aloc (MD)
I think that's a ballpark a good number of 3%. Yeah, I think we should be able to pull that off.
Answered
High priority
Levers to control OPEX and aspiration levels for cost-to-asset.
Asked by RA, IPMS
Provided specific levers and a target of 7% cost-to-asset.
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Question
what are the levers that we have in our hand to get that cost under control?
Aloc (MD)
easiest thing is to grow the book... drive efficiency harder... we'll probably get that down to 7%.
Answered
Medium priority
Why LAP book growth is low despite high disbursements.
Asked by Amit Mantri, 2.2 Capital Advisor
Explained the discrepancy with early repayments of large loans.
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Question
over the last two quarters there have been 35 crores of disbursements but the loan book has grown by only 5 crores. So what is happening here?
Aloc (MD)
there was some one large couple of large ticket loans that we've done which had seen some early payments... they were closed earlier.
Answered
Medium priority
CGFMU protection limiting NPAs and Elevation Capital exit timeline.
Asked by Pri Anag, Wealth Finis
Confirmed the protection and gave a coverage percentage.
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Question
even if it were to worsen given that there is a CGFMU protection for at least 90 odd% of the micro finance book wouldn't that give a lot of protection?
Aloc (MD)
Absolutely. Yes... as long as you get the claims it should cover about 75 72%.