Arman Financial Services Q2 FY27 Earnings Call Transcript Released
Arman Financial Services reported Q2 FY27 consolidated AUM of ₹3,209 crore, up 51% YoY, and a record profit of ₹51 crore. Disbursements grew 72% YoY to ₹818 crore. The company is enhancing digital collections and operational efficiency, targeting a cost-to-income ratio of 7% by March 2027. Namra Finance subsidiary also showed strong growth.
The announcement details robust financial performance, strategic operational changes, and positive future outlook, which are material to investors and stakeholders.
The company reported strong financial results with significant year-on-year growth in AUM and profits, alongside improvements in operational efficiency and asset quality. Management commentary reflects confidence in future growth prospects.
Arman Financial Services Limited has released the transcript of its conference call with analysts and investors held on November 06, 2026, to discuss the financial results for the quarter and half-year ended September 30, 2026. The call featured insights from Vice Chairman and Managing Director, Mr. Aalok Patel, and Executive Director and Group CFO, Mr. Vivek Modi.
During the call, Mr. Patel reflected on the company's performance, noting that consolidated Assets Under Management (AUM) crossed ₹3,000 crore, reaching ₹3,209 crore, with a highest-ever quarterly profit of ₹51 crore. He highlighted improvements in collection efficiency, a decrease in fresh delinquencies, and enhanced repayment behavior. The company reported a 51% year-on-year growth in consolidated AUM to ₹3,209 crore and disbursements of ₹818 crore, a 72% increase year-on-year. Digital collections through UPI and e-NACH now account for approximately 49% of microfinance collections.
Asset quality remained stable with a collection efficiency of 96.5%, GNPA at 2.73%, and NNPA at 0.92%. The company has implemented operational changes, including separating credit and recovery functions, which have shown a 15% lower default rate for new loans. Investments in technology for loan origination and verification are ongoing. The status of the CGFMU Credit Guarantee Scheme was also discussed, with eligible loans up to March 31, 2026, remaining covered, while subsequent loans are not yet covered pending renewal.
Operating expenses as a percentage of AUM have improved to 42.6% in Q2 FY27 from a peak of 51.7% in Q4 FY26, with a target to reach around 7% by March 2027. Consolidated gross total income for Q2 FY27 grew 48% year-on-year to ₹235 crore, with profit after tax at ₹51 crore, a significant turnaround from ₹8 crore in Q2 FY26. Namra Finance, the microfinance subsidiary, reported AUM of ₹2,424 crore and a profit after tax of ₹34 crore for the quarter. The standalone business saw AUM of ₹784 crore with a profit after tax of ₹17 crore.
Mr. Patel acknowledged concerns regarding uneven monsoons and drought conditions in Maharashtra and Karnataka, which together account for 7.6% of consolidated AUM. While the impact has been marginal so far, the company is closely monitoring the situation. He expressed optimism for the second half of the fiscal year, citing stronger credit processes, improved collection structures, and sufficient capital and liquidity.
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