Arman Financial Services

Arman Financial reported a strong Q4 FY26 with consolidated PAT of ₹41 croreCurrent reported value: ₹41 crore. No comparable prior figure is available in the source record., up 220% YoYCurrent reported value: 220% YoY. No comparable prior figure is available in the source record., driven by improved collections and lower credit costs. AUM crossed a record ₹2,728 croreCurrent ₹2,728 crore. Reported change: +22% YoY. (+22% YoY), with microfinance AUM at ₹1,999 crore (+19% YoY). Disbursements hit a record ₹951 croreCurrent ₹951 crore. Reported change: +88% YoY. in Q4, reflecting strong momentum. Asset quality improved with GNPA at 3.4%Current 3.4%. Reported change: -180bps YoY. and NNPA at 0.95%. Management highlighted structural changes—separating credit/recovery functions and shifting to individual-level underwriting—which have improved portfolio quality but raised operating costs (cost-to-assets ~9%). They target reducing opex to ~7% in FY27. Guidance is cautiously optimistic: they expect ROA of 3.5-4%+ and credit costs around 3%. Key risks include global uncertainty, elevated rejection rates, and potential margin compression from rising borrowing costs.