Arman Financial sees mixed results, standalone businesses grow in H1 FY26

Arman Financial Services Limited announced its unaudited financial results for the quarter and half year ended September 30, 2025, reporting a 14% year-on-year decline in consolidated Assets Under Management (AUM) to INR 2,130.4 crore for H1 FY26. Profit after tax also saw a significant drop, with a consolidated loss of INR 6.6 crore for H1 FY26, compared to a profit of INR 46.6 crore in H1 FY25.

Despite the consolidated decline, the company's standalone businesses (MSME, Two-Wheeler, and LAP) performed strongly. AUM grew 29% year-on-year to INR 623.2 crore and profit after tax increased 4% year-on-year to INR 21.4 crore for H1 FY26 in these segments. Disbursements for the standalone segments totaled INR 260 crore in H1 FY26, with net total income growth of 20% year-on-year.

Collection efficiency improved to 95.6% in September, with microfinance GNPA at 3.77% and NNPA at 0.26%. The company maintains a strong capital base, with a capital adequacy ratio of 38.7% at the standalone level and 57.8% for its microfinance subsidiary, Namra.