Arman Financial Services Ltd(ARMANFIN)

NSE: ARMANFINBSE: 531179

₹ 1,418.75-2.40%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 1,496 crWebsite: www.armanindia.comUpdated: 24 Oct 2026

About

Arman Financial Services is a Gujarat-headquartered NBFC with two lending businesses: microfinance (joint-liability group and individual loans) through its subsidiary Namra Finance Limited, and MSME, loan-against-property, and two-wheeler loans on a standalone basis. Consolidated AUM reached a record INR 2,925 crore in Q1 FY27, up 36% year-on-year, with FY26 revenue of INR 645.87 crore. The company holds a significantly lower gross NPA (2.76% consolidated in Q1 FY27) than the broader MFI sector, which reported 16% gross NPA at end FY25.^[1][2][3]

Business segments

Arman standalone (MSME/LAP/2W): AUM of INR 758 crore in Q1 FY27, +26% YoY, comprising ~26% of consolidated AUM. MSME loans are 76% of standalone portfolio as of FY26.^[1][4]
Individual business loans within Namra now account for 32.94% of consolidated AUM (INR 964 crore) in Q1 FY27, growing faster than the JLG book and outperforming it on asset quality.^[1]

Loan portfolio and products

MFI segment offers JLG loans and individual microfinance loans (IL). Individual loans use eNACH/UPI mandates enabling ~85% cashless collection as of Q1 FY27.^[1]
Standalone segment offers MSME loans (74% of standalone book in Q3 FY26), two-wheeler loans, and loan-against-property (LAP). LAP AUM reached INR 90 crore with Q1 FY27 disbursements of INR 13 crore.^[1][5]
Solar loan pilot running at ~INR 50 lakhs per month in selected geographies as of Q1 FY27, with zero defaults recorded. Product yields 18 - 20% and is positioned as low-risk.^[1]
Namra Finance maintains 20 - 27% of AUM as off-book through direct assignment transactions (without recourse) for ALM management; standalone maintains ~5 - 10% off-book via direct assignment.^[3]

Key operating numbers

Consolidated disbursements of INR 686 crore in Q1 FY27 were the highest-ever for a first quarter, up 76% YoY. Q4 FY26 quarterly disbursements were INR 951 crore, also a record.^[1][4]
Consolidated NIM: 17.4% in Q1 FY27; Namra MFI NIM: 15.37% in Q1 FY27 (vs 15.2% consolidated in Q3 FY26).^[1][5]
Incremental cost of borrowing: 11.7% in Q1 FY27, down from ~12% in Q2 FY26 and ~12.5% overall in Q2 FY26.^[1][6]
Opex-to-AUM declined from ~9% in FY26 to ~8% in Q1 FY27; management targets 7% by end of FY27 (March 2027).^[1][4]
Pre-provisioning operating profit (consolidated) rose to INR 77 crore in Q1 FY27 from INR 59 crore in Q4 FY26 (+29% QoQ); cost-to-income ratio improved to 44.3% from 51.7%.^[1]

Asset quality

Consolidated GNPA improved to 2.76% and NNPA to 0.84% in Q1 FY27, down from a Namra MFI GNPA peak of 3.8%; consolidated GNPA was 3.69% in Q2 FY26.^[1][6]
Collection efficiency stood at 96.6% (overall consolidated) in Q1 FY27; early-stage delinquencies stable at ~99.5% zero-DPD flow-forwards.^[1]
BCM (branch credit manager) credit-sales separation now implemented across most MFI branches; BCM-originated post-Nov 2024 cases show ~50% lower default rates vs non-BCM originated cases.^[5]
CGFMU guarantee scheme covers ~94% of the eligible MFI portfolio as of June 2026, up from 90% at end FY26, 67% at end Q2 FY26, and 34% at end FY25.^[1][4][6][3]

Capital adequacy and funding

Namra Finance CRAR: 27.86% in Q4 FY26, down from 52.3% in Q3 FY26 (the high was partly due to AUM contraction); FY25 CRAR was 48.41%.^[4][5][3]
Total consolidated borrowings declined significantly from INR 1,39,755.71 lakhs to INR 88,780.96 lakhs in FY25 due to portfolio contraction; subsequent AUM growth has reversed the deleveraging.^[3]
Board approved raising up to INR 500 crore via NCDs on a private placement basis (announced Q3 FY26).^[5]

Geographic and distribution reach

MSME standalone operations expanded into Uttar Pradesh during FY26; LAP entry into UP planned to follow once MSME stabilises. Standalone has ~120 MSME branches.^[4][6][5]
LAP operations initiated in Telangana during FY26; Telangana stress contributed to LAP GNPA doubling to 1.52% in Q1 FY27.^[1][4]
Solar loan pilot geographies limited to selected areas; disbursements at ~INR 50 lakhs/month as of Q1 FY27 with average ticket of INR 2 lakh and tenure of 12 - 60 months.^[1][5]

Recent developments

Acuité Ratings reaffirmed Arman Financial Services at 'ACUITE A-' and changed the outlook from Stable to Positive, effective October 1, 2026.^[7]
Founder Jayendra Patel passed away on August 25, 2026; his item for re-appointment at the 34th AGM (September 28, 2026) was withdrawn.^[8]
Aalok Patel re-designated as Vice Chairman and Managing Director (from Joint MD) with effect from February 12, 2026 for five years; Vivek Modi appointed Executive Director and Group CFO.^[8][5]
Long-term AUM aspiration of INR 5,000 crore consolidated stated; management targets ~25% consolidated AUM growth for FY27 with SME portfolio share rising to 35% of AUM over time.^[4][5]

Market Cap

₹1,496 Cr

High / Low

₹2,159 / 1,302

Stock P/E

12.9

Price / Book

1.6

Book Value

₹888

EPS

₹53.9

No. of Shares

1.05 Cr

ROE

6.3%

Debt / Equity

1.90

Sales

₹646 Cr

Net Profit

₹57 Cr

Promoter holding

21.9%

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