Arman Financial reports Q2 FY26 profit amid microfinance recovery

Arman Financial Services Limited reported a profit of INR 8 crores in Q2 FY26, a notable improvement from a loss of INR 14.6 crores in Q1 FY26. The company’s consolidated AUM stood at INR 2,130 crores as of September 2025, with overall collection efficiency improving to 95.6% in September. Impairment costs have trended downwards for three consecutive quarters, from INR 89 crores in Q4 FY25 to INR 38 crores in Q2 FY26, reflecting healthier repayment behavior.

Disbursements for H1 FY26 were INR 865 crores, with Q2 FY26 disbursements at INR 475 crores, marking a 26% year-on-year increase and a 21% sequential growth over Q1 FY26. The consolidated GNPA stands at 3.69% and NNPA at 0.53%, indicating a normalization in asset quality. Approximately 67% of the microfinance portfolio is covered under the CGFMU guarantee scheme, providing an added layer of risk protection.

The non-MFI segments, including MSME, Two-Wheeler, and LAP, continue to deliver consistent momentum, with AUM growing by 29% year-on-year to INR 623 crores. Disbursements for Q2 FY26 in these segments grew by 34% year-on-year to INR 140 crores. The company anticipates strengthening momentum in H2 FY26, with continued stabilization in microfinance asset quality and further moderation in credit costs.