Slides
Page 1
1 Arman Financial Services Limited Investor Presentation – February 2026
Page 2
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Arman Financial Services Ltd . (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever . No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company . This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation . This Presentation may not be all inclusive and may not contain all of the information that you may consider material . Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded . This presentation contains certain forward -looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward -looking statements . The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy . The Company does not undertake to make any announcement in case any of these forward - looking statements become materially incorrect in future or update any forward -looking statements made from time to time by or on behalf of the Company .
Page 3
Business Update About the Company Page 4 - Page 6 Page 7 - Page 13 Presence in Attractive Retail Lending Segments Page 14 - Page 20 Efficient Liability Management Strong Financial Performance Page 21 - Page 24 Page 25 - Page 39
Page 4
Business Update Business Update
Page 5
Assets Under Management INR 2,274 Crore (6.8% Q -o-Q) Disbursement INR 1,482 Crore (26.7% Y -o-Y) Shareholder’s Equity INR 892 Crore CRAR: Arman (Standalone) : 38.3%; CRAR: Namra : 52.3% Profit After Tax INR 16 Crore INR 22 Crore in Q3FY26 9MFY26 Performance Highlights INR 35 Crore INR 29 Crore in Q3FY26 Profit Before Tax Provisions and Write offs INR 131 Crore* Cumulative Provisions stood at INR 74 Crore as on 31 st December 2025 (covering 3.2% of the consolidated AUM, 4.0% on book) Asset Quality GNPA: 3.40% NNPA: 0.77% Return Ratios# ROAA: 0.92% ROE: 2.38% Collection Efficiency 96.0% for 9MFY26 Active Customer Base Approximately 6.2 Lakhs Assets Under Management Disbursement All numbers are on consolidated basis #ROAA - Return on Average AUM; ROE - Return on Average Equity 5 * Sufficient provisions are in place to reflect the ground realities, along with accelerated write-offs Figures may not add up due to rounding off
Page 6
Track Record of Capital Raising Business Performance Shareholding Pattern as on 30 th September 25, on Fully diluted basis 22.0% 10.1% 60.5% 1.7%5.7% Total Shares Outstanding (Fully Diluted) : 1,05,12,921 6 Promoters Elevation Capital FPI Bodies Corporate Retail & Others 2018: Investment by SAIF Partners • In 2018, raised Rs. 50 crore by issuing compulsorily convertible debentures (CCDs) to SAIF Partners, a leading private equity firm 2022: INR 115 Crore Raised via Preferential Allotment • In September 2022, raised INR 115 crore through a preferential allotment of securities to non-promoter investors. • 6,24,388 Unsecured Compulsorily Convertible Debentures (CCDs) at ₹1,230 each, aggregating to ₹76.80 crore. • 3,10,972 Optionally Convertible Redeemable Preference Shares (OCRPS) at ₹1,230 each, totalling ₹38.25 crore. 2023: INR 230 Crore Raised via Qualified Institutional Placement (QIP) • In December 2023, raised INR 230 crore through a Qualified Institutional Placement (QIP). The company allotted 10,47,835 equity shares at an issue price of ₹2,195 per share to qualified institutional buyers. The mix of Tier I & II equity capital will be used to fund the targeted growth plans of taking the organization to INR 5000 + crores with a healthy capital adequacy and debt -equity ratio by leveraging our presence in the MFI, MSME, LAP, Two -Wheeler, and other loan segments which will enables the company to achieve a sustained growth momentum in the coming few quarters .
Page 7
About the Company About the Company
Page 8
58.5% 21.5% 4.0% 3.4% 12.6% 20.0% Microfinance (JLG) MSME Loans 2-Wheeler loans Loan Against Property Individual Business Loans About Arman Financial Services Business Performance • A diversified NBFC focusing on large under -served rural & semi -urban retail markets • Founded in 1992 by Mr. Jayendra Patel in Ahmedabad • Listed on BSE in 1995 and on NSE in 2016 • Strong Management Team having a combined experience of 100+ years in the Lending Business About the Company Strong Historical Financial Performance • High -Growth Trajectory (FY16 -25 CAGR): • AUM: ~ 33% • Net Interest Income: ~ 39% • PAT: ~23% • Consolidated debt to equity ratio as on 31 st March 2025 of 1.3x – Sufficient Capital to drive growth going forward # Efficient Liability Management • Consistent rating upgrades backed by strong financial & operating performance • Namra & Arman credit rating reaffirmed to A - (Stable Outlook) by ACUITE in January 2026 • Reaffirmed to A - (Negative Outlook) by CARE Ratings for Arman and Namra • MFI -1 (MFI One) rating has been awarded to Namra Finance Limited, the wholly owned subsidiary offering microfinance loans • Track record of consistent profitability - Never reported an annual loss • Completely in -house operations with bottoms up driven credit appraisal models and rigorous collections practices #After adjusting overdrafts (OD) from banks having 100% security against fixed deposits amounts to INR 125.18 Crore. ^Company’s wholly owned subsidiary ‘Namra Finance Limited’ offers microfinance loans Presence in Attractive Retail Lending Segments – 9MFY26 Branches 524 Districts 160 States 11 Two -Wheeler dealerships 50+ Live Customers ~6.2 Lakh 42+ Began operations in Gujarat and has continuously undertaken expansion since 2014 to achieve geographic diversifications with foo tprint in 11 states. Comfortable Liquidity Position Positive ALM Diversified Borrowing Profile & Relationship with Banks & FIs 8Figures may not add up due to rounding off
Page 9
Journey so Far • Company Incorporated • Started bill discounting & Machine leasing • Launched MSME Loans business • Crosses 100 branches across 5 states & 3 products • Disbursement crosses INR 500 Crore • Listing on BSE – Issue subscribed 22x • Expanded to Maharashtra, MP, UP & Uttarakhand • Listing on NSE • Launched 2W Loans • Demerged MFI operations into “Namra Finance” • Disbursement crosses INR 100 Crore • Launched Microfinance business 1992 1995 1998 2010 2017 2014-16 2013 • Raised PE funding from Incofin • Disbursement crosses INR 50 Crore 2011 • Disbursement crosses INR 875 Crore 2020 • AUM crossed INR 1,000 Crore 2021 • Raised PE funding from SAIF Partners 2018 • Disbursement crosses INR 750 Crore • 100% Cashless disbursements • Expanded into Rajasthan 2019 • Raised ~INR 115 Crore through allotment of CCDs and OCRPs on preferential basis • Commenced operations in states of Haryana and Bihar 2022 • Namra & Arman upgraded to A | Stable by Acuite Ratings in August 2024 • Upgraded to A - (Stable Outlook) from BBB+ (Stable Outlook) by CARE Ratings for Arman and Namra in March 2024 • Crossed INR 2,500 Crore AUM mark in Feb -24. • Entered new states of Telangana, Jharkhand and Karnataka 2024 9 • Namra Finance received CARE Ratings' highest MFI -1 grading • Doubled the AUM to INR 2,000 Crore in 18 months • Raised ~INR 230 Crore through QIP 2023 • LAP Product launch across key states of Gujarat, MP and Telangana 2025 • Started Pilot of Solar Loans across Gujarat 2026
Page 10
Active Customers ~6.2 Lakh Geographical Footprint 4900+ No of EmployeesBranches 524 No of Loan Officers 4100+ Geographical AUM Mix (Consolidated) Number of Branches 9MFY26 9MFY25 Microfinance 401 392 MSME 119 90 2W & Rural 2W 4 4 Total 524 486 Note: Map not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness Number of Branches 86 11 45 99 60 3 102 62 27 19 10 30% 21%16% 11% 9% 4% 2% 1% 1%2%3% Gujarat Uttar Pradesh Madhya Pradesh Bihar Rajasthan Maharashtra Telangana Jharkhand Haryana Karnataka Uttarakhand 10 Figures may not add up due to rounding off
Page 11
Strong Underwriting by Leveraging Digital Transformation Instant Verification Of Key Details • The LOS* & LMS* System facilitates instant verification • KYC Validation through OCR and face recognition • Mobile No. verification through OTP • Customer identity verification through UPI System • Bank Account verification through "penny -drop” Instant First -level Credit Assessment • Immediate household -based credit assessment through Credit Bureau API integration and robust rule engine • Algorithm based risk assessment • Fully compliant with new RBI regulations for household income assessment • Overlapping customers will be alerted by the system across products and divisions to avoid over indebtedness Traceability • Better customer traceability by 4D customer Verification, which includes geotagging (Latitude, Longitude), House Picture, auto address capture, and Mobile verification • Centre Branch Geo fencing to avoid any slippages in the defined process • Audit trail of each stage Superior Collection • Mobile -based collection at Point of transaction • Customized UPI QR code to each customer facilitating them to Go Cashless • An easy way out to Prepone and postpone the due dates in case of Holidays • Instant acknowledgment SMS to the customer in vernacular languages Loan Management • Loan Utilization check • Instant pre -closure and pre -settlement and its simulation for the customer to understand • Hassle -free check in case of advance or Overdue collection • Centre & Customer categorization based on repayment trends Customer Gain • Paperless disbursement through eSign • Providing intimation of each relevant transaction through SMS to every customer • Tele -calling will happen through the system with a call recording facility • Will develop customer facing app post implementation ~50% Reduction in TAT between sourcing documents and fund disbursement 11 Arman Suvidha – Customer Service App • Designed to enhance customer engagement and streamline loan management for its microfinance clientele. • Loan Account Overview • Payment Schedule Tracking • Document Access
Page 12
Eminent Board of Directors • A veteran banker with over 35 years of regulatory, banking and financial services experience, with Senior positions at RBI, NHB, and Citi Bank. • He was the founder CEO of MFIN, the Industry Body and Self- Regulatory Organization (SRO) for Microfinance Institutions (MFIs) in India. • He has served on has served on a number of committees of the Ministry of Finance, Govt of India. Alok N. Prasad Chairman Jayendrabhai B. Patel Whole Time Director* • He has been an entrepreneur for 45 years. He was involved in a pharmacy business in a USA early in his career followed by running a textile start-up in Gujarat. • He founded Arman in 1992 and has been at the helm of management since then. • He is the founder member of the Gujarat Finance Companies Association and presently serves as Vice-Chairman of the Association. Aalok J. Patel Vice Chairman & Managing Director* • He has 16 years of banking and finance experience, including 12 years at Arman. Prior to Arman, he worked as an independent auditor at KPMG in US. • He is a licensed Certified Public Accountant (CPA) from USA. He also has served as a visiting professor at HL College of Commerce and is a guest lecturer at IIM-A. • He holds a Bachelor’s in Accounting & Finance and Master’s in Accountancy from Drake University, USA. Yash K. Shah Independent Director Ritaben J. Patel Non -Executive Director Aakash J. Patel Non -Executive Director Pinakin S. Shah Independent Director Geeta H. Solanki Independent Director • He is a Chartered Accountant and currently a partner at DBS & Co. • He is an expert in the fields of Mergers & Acquisitions and Valuations. Prior to DBS, he was at KPMG in the MA division. • He has written various papers on Domestic Transfer Pricing and Cross Border Transactions and also given numerous lectures in the topic of M&A. • He has over 18 years of Information Technology , Computer Science, and business experiences. Currently, he works as a Manager- PMO for Bullhorn Inc. • Prior to that, he worked at various other roles such as IT Consulting with Deloitte, software developer at Intellitools, and other companies such as Hewlett Packard, EMC Corporation, Softscape Inc and Sumtotals Systems. • He holds a MBA from Bentley College, USA. • She holds Banking qualifications from First National Bank of Chicago, USA and has worked with various other USA banks like Golf Mill Bank and Morton Grove Bank in various capacities for more than a decade. She holds a B. A. in Economics. • An accomplished Company Secretary, Registered Valuer, and Insolvency Professional with 40 years of experience. • He brings a unique blend of legal expertise and financial acumen to the boardroom. Spearheaded Gujarat Lease & Finance Limited (GLFL) for over 2 decades in various senior management roles like Company Secretary, Financial Controller and CEO. He has successfully navigated complex legal landscapes and delivered results in diverse industries • She is a serial social entrepreneur in Women’s health, hygiene, and social development. • She co-founded a company for educating and providing women hygiene care to bottom of the pyramid customers. • She received the ‘Bharat Ki Laxmi’ award from The Ministry of Women and Child Development, and also serves as an expert on numerous panels and summits on Women’s hygiene. 12* subject to approval of shareholders and other applicable regulatory authorities
Page 13
Competitive Moat Diversifying products, geographies, sources of funds and delivering growth by increasing volumes rather than ticket sizes Competitive Moat Focus on small ticket retail loans to the large under served informal segment customer in rural & semi urban geographies Conservative operations framework with focus on risk & asset quality Business model centered around conservative approach to high yielding assets to deliver a sustainable ROA of 3 -4% Completely in house operations with bottom -up driven credit appraisal models and rigorous collections practices tailored for the areas of operations 13
Page 14
Presence in Attractive Retail Lending Segments
Page 15
Product Offerings across Verticals MSME Loans Average Ticket Size: INR 75,000 Tenure: 24 Months 21.5%Microfinance - JLG Average Ticket Size : INR 50,000 (Cycle 1 & 2 -INR 25K – 60K Cycle 3+ -INR 25K – 75K) Tenure: 12 - 24 Months 58.58% Two-Wheeler Loans Average Ticket Size: INR 76,000 Tenure: 12 - 36 Months 4.0% Loan Against Property (LAP) Average Ticket Size: INR 5,00,000 Tenure: 36 - 84 Months 3.4% % of AUM as of December 2025 Company’s wholly owned subsidiary ‘Namra Finance Limited’ offers microfinance to women 15 Individual Business Loans (Microfinance) Average Ticket Size: INR 90,000 Tenure: 24 Months 12.5% Figures may not add up due to rounding offAverage Ticket Size Based is for 9M FY26 Solar Loans Average Ticket Size: INR 2,00,000 Tenure: 12 -60 Months 0.02%
Page 16
• Disbursement: 100% Cashless • Credit Check: CRIF / Equifax Score; JLG Model with Training, Home Visit, Lifestyle Appraisal • Collections: Cash collection at centre meetings. Increased focus on digital mode of collections with ~20% of the overall collections are now cashless. Microfinance Loans AUM* 1,768 1,618 9 M F Y 2 5 9 M F Y 2 6 Disbursement Profit After Tax Avg. Ticket Size Total Income (INR Crore) 839 1,060 9 M F Y 2 5 9 M F Y 2 6 402 316 9 M F Y 2 5 9 M F Y 2 6 8 -16 9 M F Y 2 5 9 M F Y 2 6 47,000 51,000 9 M F Y 2 5 9 M F Y 2 6 ( I N R ) • JLG model with small ticket loans (Avg. Ticket Size – INR 51,000) given to women borrowers for income generating activities such as Livestock, Dairy, Agri allied, Kirana Stores • Operations: Operations in 11 states; 401 MFI branches; 4.97+ lakh active customers • Operating Model: • High touch monthly collection model • Rural concentration: ~93.83% rural & semi-urban portfolio (vs 75% for MFI industry) • Conservative risk framework • 100% Cashless disbursement • JLG groups formed by customers themselves • Loan utilization checks to ensure loan for income generating purpose • Controlled growth targets driven by bottom-up projections. Tightened credit policy through implementation of SRO recommended guardrails of max number of lenders and borrower outstandings. Key Ratios (9MFY26) GNPA: 3.40% NNPA: 0.66% ROAA: (1.34%) ROE: (3.44%) *Includes Individual Business Loans *Yield and NIMs are excluding DA income *Yield: 23.08% *NIM: 13.53% 16
Page 17
MSME Loans AUM 410 489 9 M F Y 2 5 9 M F Y 2 6 Total Income Avg. Ticket Size Disbursement 262 311 9 M F Y 2 5 9 M F Y 2 6 108 124 9 M F Y 2 5 9 M F Y 2 6 73,000 79,000 9 M F Y 2 5 9 M F Y 2 6 ( I N R ) Key Ratios (9MFY26) *Yield: 35.05% • Disbursement: 100% Cashless • Credit Checks: CIBIL & CRIF Score; Detailed Cash Flow Assessment; Home & Business Field Investigation. Enhanced underwriting in FY- 25 led to marginal drop in Average Ticket size. • Collections: Doorstep cash collection. Increased focus on digital mode with ~20% cashless collections GNPA: 3.74% NNPA: 0.95% • Individual enterprise /working capital loans for small rural businesses in low competition areas • Currently operates across 7 states – Gujarat, MP, Maharashtra, Rajasthan Uttarakhand, Uttar Pradesh & Telangana with 119 branches • Arman MSME operating model: • Dual credit bureau check for both customer and spouse on CRIF (for MFI loans) and CIBIL (for non -MFI loans) • High-touch monthly cash collection model • Cash Flow assessment using tailored appraisal techniques • Locally drawn field force with personal knowledge of the market • In-house teams for pre-lending field investigations and appraisals with centralized final credit approval • Highest ROA product at Arman; focus on growing this business over time • Focus on quality underwriting & rigorous collections to ensure asset quality 17 (INR Crore) *Yield is excluding DA Income
Page 18
LAP Loans AUM 19 77 9 M F Y 2 5 9 M F Y 2 6 Total Income Avg. Ticket Size Disbursement 18 50 9 M F Y 2 5 9 M F Y 2 6 ( I N R ) Key Ratios (9MFY26) GNPA: 0.31% NNPA: 0.11% • Disbursement: 100% Cashless • Credit Checks: CIBIL & CRIF Score; Home & Business Field Investigation, detailed cash flow assessment, property’s technical valuation and title investigation • Collections: 100% - E-Nach and other digital modes • Company launched and piloted a new product, Loan Against Property in Q4 FY24. • AUM contribution as on Dec-25 is ~3.4%. • In Dec-25, the average ticket size of this product is INR 5.5 Lakhs, with a tenure ranging from 36 to 84 months • Currently operates across Gujarat and newly started in Telangana & Madhya Pradesh. • Operating in Tier 3-4 & below locations; key growth driver going forward, with Maximum LTVs of 65% • Growth levers: • Increase in finance penetration • Geographical & new product expansion *Yield: 22.32% *Yield is excluding DA Income 2 11 9 M F Y 2 5 9 M F Y 2 6 4,30,000 5,50,000 9 M F Y 2 5 9 M F Y 2 6 18 (INR Crore)
Page 19
2W and Rural 2W Loans AUM 83 91 9 M F Y 2 5 9 M F Y 2 6 Total Income Avg. Ticket Size Disbursement 51 61 9 M F Y 2 5 9 M F Y 2 6 ( I N R ) Key Ratios (9MFY26) GNPA: 4.28% NNPA: 1.90% • Disbursement: 100% Cashless • Credit Checks: CIBIL & CRIF Score; Home & Business Field Investigation • Collections: E-Nach and other digital modes for 2W, doorstep cash collection rural 2W • Hypothecation (secured) loans given to self-employed /cash-salaried customer in the informal segment in semi-urban/rural areas for a 2W • Currently operates only in Gujarat; across 50+ dealerships • Operating in Ahmedabad-Gandhinagar & Tier 3-4 locations in Gujarat. • Growth levers: • Increase in finance penetration • Geographical & new product expansion • Arman 2W & Rural 2W operating model: • Focus on quick turn around time • Excellent relationships with local dealers. • In-house feet-on-street model for rigorous collections *Yield: 25.83% *Yield is excluding DA Income 15 15 9 M F Y 2 5 9 M F Y 2 6 74,000 75,000 9 M F Y 2 5 9 M F Y 2 6 19 (INR Crore)
Page 20
Collection Efficiency Microfinance O c t- 25 Nov - 25 D e c- 25 95.6% 96.0% 96.4% MSME Total Two-Wheeler Update on Collections • With stabilizing borrower cashflow, Collections are witnessing a gradual improvement, supported by tighter monitoring mechanisms and disciplined field execution. • Microfinance and MSME collections were at ~96.4% and ~95.9% in Dec-25 • 2W collections continued to be ~95.6% in Dec-25 • Cumulative Provisions stood at INR 73.8 Crore as on 31st December 2025 (covering 3.2% of the consolidated AUM, 4.0% on book) • Namra Finance: Cumulative Provisions stood at INR 44.2 Crore as on 31st December 2025 (covering 2.7% of the consolidated AUM, 3.7% on book) • Standalone: Cumulative Provisions stood at INR 29.6 Crore as on 31st December 2025 (covering 4.5% of the consolidated AUM, 4.5% on book) Particulars (INR Crore) Microfinance MSME Two- Wheeler Total Oct-25 Collection Due 132.2 44.8 4.8 181.7 Amount Collected 126.3 42.9 4.6 173.8 Nov-25 Collection Due 129.8 45.5 5.1 180.4 Amount Collected 124.6 43.7 4.9 173.2 Dec-25 Collection Due 133.1 47.3 5.2 185.6 Amount Collected 128.4 45.3 5.0 178.7 20 Oct - 25 Nov - 25 D e c- 25 95.7% 96.0% 95.9% Oct-25 Nov-25 Dec-25 95.8% 95.6% 95.6% Oct-25 Nov-25 Dec-25 95.6% 96.0% 96.3%
Page 21
Efficient Liability Management
Page 22
Strong Capitalization with Sufficient Liquidity ALM Position (in Months) 15 16 15 15 1616 16 16 16 17 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 A v g T e n u r e o f A c t i v e A s s e t s A v g T e n u r e o f A c t i v e B o r r o w i n g s Update on Liquidity • Healthy Liquidity position with INR 247 Crore in cash/bank balance, liquid investments, and undrawn CC limits • ALM continues to remain positive, and the company continue to have access to new sources of funds via DA and NCDs • Additionally, company has INR 320 Crore undrawn sanctions from existing lenders Capital Adequacy Ratio 31-Dec-24 31-Mar-25 30-Jun-25 30-Sep-25 31-Dec-25 39.5% 45.7% 37.3% 48.4% 38.2% 50.1% 38.7% 57.8% 38.3% 52.3% Arman (Standalone) Namra 22 859 874 861 872 892 D e c- 24 M a r- 25 J u n- 25 S e p- 25 D e c- 25 Net worth (INR Crore) 1.4 1.3 1.3 1.2 1.4 D e c- 24 M a r- 25 J u n- 25 S e p- 25 D e c- 25 Debt/Equity (x) # #After adjusting overdrafts (OD) from banks having 100% security against fixed deposits amounts to INR 125 Crore.
Page 23
Borrowing Mix (%) Borrowing Profile (INR Crore) Credit Rating Top 5 Lending Partners Top 5 Lenders % of Borrowings Lender 1 – TL & DA 15.63% Lender 2 - TL & DA 6.11% Lender 3 - TL & DA 6.66% Lender 4 – TL & DA 5.46% Lender 5 - NCD 3.76% 23 Namra Finance Limited is assigned ‘MFI-1’ (MFI One) grading by CARE Advisory Research & Training Limited. Credit Rating ACUITE Long Term Bank Facilities ACUITE A - | Stable Outlook Non -Convertible Debentures 29.7% 29.8% 26.1% 28.8% 24.8% 20.3% 19.1% 18.1% 18.0% 28.3% 5.4% 4.4% 11.8% 12.3% 13.0% 14.6% 18.2%4.3% 3.7% 3.4% 33.9% 32.2% 32.8% 30.2% 23.8% 0.0% Q3FY25 2.9% Q4FY25 Q1FY26 2.6% Q2FY26 3.1% Q3FY26 1,765 1,769 1,621 1,695 1,880 1.7% Banks & SFBs DFIs (NABARD, MUDRA & SIDBI) NBFC / FI Securitization NCD DA
Page 24
Lending Partnerships Bank Borrowings Non -Bank Borrowings Securitization Partners NCDs & ECB 24 The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only
Page 25
Financial Performance
Page 26
9MFY26 Consolidated Profit & Loss Statement Particulars (INR Crore) Q3FY26 Q3FY25 YoY % Q2FY26 QoQ% 9MFY26 9MFY25 YoY % Income from Operations 160.1 164.8 159.2 470.3 530.7 Other Income 0.0 0.0 0.0 0.0 0.0 Gross Total Income 160.1 164.8 -3% 159.2 1% 470.3 530.7 -11% Finance Costs 50.8 57.0 49.6 152.6 187.6 Net Total Income (NTI) 109.3 107.8 1% 109.6 0% 317.6 343.1 -7% Employee Benefits Expenses 38.9 28.0 36.4 108.8 80.1 Depreciation and Amortisation 0.4 0.5 0.5 1.3 1.3 Other Expenses 15.2 10.3 16.5 41.3 30.1 Pre-Provision Operating Profit 54.7 69.1 -21% 56.2 -3% 166.3 231.6 -28% Total Provisions & Write-offs 26.2 76.0 38.3 131.0 175.1 Profit Before Tax 28.5 -6.9 - 17.9 59% 35.3 56.4 -37% Profit After tax 22.2 -7.3 - 8.0 177% 15.6 39.3 -60% 26Figures may not add up due to rounding off
Page 27
Balance Sheet – 31st December 2025 Particulars (INR Crore) Consolidated Standalone ASSETS Dec-25 Mar-25 Dec-25 Mar-25 Financial Assets Cash and cash equivalents 195.7 67.8 134.0 4.8 Bank Balance 324.6 335.7 81.6 69.0 Loans & Advances 1,746.7 1,683.7 621.7 552.7 Investments 31.6 39.0 351.5 351.3 Other Financial assets 28.1 41.6 4.5 4.5 Total Financial Assets 2,326.7 2,167.6 1,193.4 982.3 Non-Financial Assets Current tax Assets (Net) 6.0 0.0 0.5 0.0 Deferred tax Assets (Net) 18.6 26.0 7.4 6.8 Property, Plant and Equipment 29.3 29.7 25.4 25.3 Other Intangible Assets 0.2 0.3 0.1 0.1 Capital Work In Progress 0.6 0.2 0.6 0.2 Right To Use Asset 2.2 1.1 0.0 0.0 Other non-financial assets 6.9 2.5 1.7 1.5 Total Non-Financial Assets 63.7 59.7 35.6 33.9 Total Assets 2,390.4 2,227.3 1,228.9 1,016.1 Particulars (INR Crore) Consolidated Standalone LIABILITIES & EQUITY Dec-25 Mar-25 Dec-25 Mar-25 Equity Share capital 10.5 10.5 10.5 10.5 Reserves & Surplus 881.8 863.9 612.1 575.3 Total Shareholders’ Funds 892.3 874.4 622.6 585.8 Financial Liabilities Other Payables 0.6 1.2 0.4 0.2 Debt Securities 531.7 334.5 248.2 139.5 Borrowings 869.9 887.8 343.4 271.7 Subordinated Liabilities 10.0 10.0 0.0 0.0 Other Financial Liabilities 79.6 111.5 11.6 8.8 Total Financial Liabilities 1,491.8 1,345.0 603.7 420.3 Non-Financial Liabilities Current tax liabilities (Net) 0.0 2.0 0.0 6.5 Provisions 3.7 3.2 1.2 1.1 Other non-financial liabilities 2.6 2.6 1.4 2.5 Total Non-Financial Liabilities 6.3 7.9 2.6 10.0 Total Liabilities & Equity 2,390.4 2,227.3 1,228.9 1,016.1 27Figures may not add up due to rounding off
Page 28
Consolidated Business Performance AUM 2,280 2,245 2,156 2,130 2,274 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 Disbursement 338 544 390 475 618 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 Gross Total Income 165 199 151 159 160 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 Net Total Income 108 148 99 110 109 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 Pre-provision Operating Profit Profit / Loss After Tax -7 13 -15 8 22 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 69 102 55 56 55 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 (INR Crore) 28
Page 29
Consolidated Business Performance Net Interest Margin (%) Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 15.2% 16.0% 16.0% 16.7% Q 3 F Y 2 6 16.6% Cost to Income Ratio (%) Yield (%) Asset Quality (%) Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 4.1% 0.7% 3.4% 0.6% 3.5% 0.5% 3.7% 0.5% Q 3 F Y 2 6 3.4% 0.8% Return on Average AUM (%) Return on Equity (%) Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 35.9% 31.1% 44.0% 48.7% Q 3 F Y 2 6 49.9% Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 24.8% 25.1% 25.5% 25.9% Q 3 F Y 2 6 25.9% Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 -1.2% 2.3% -2.7% 1.5% Q 3 F Y 2 6 4.0% Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 -3.4% 5.9% -6.7% 3.7% Q 3 F Y 2 6 10.1% GNPA NNPA NIMs and Yield are calculated excluding DA income. RoE and Return on Avg. AUM figures are annualized 29
Page 30
PAR Movement PAR 31-90 (%) Movement The microfinance sector is witnessing gradual stabilization following a period of elevated stress in rural unsecured lending. On-ground conditions have improved, with stronger borrower repayment behaviour and better collection efficiency across key geographies. Incremental delinquencies have moderated, supported by tighter underwriting and focused recovery efforts 2.8% 2.9% 3.4% 3.4% 3.8% 3.4% 2.4% 2.2% 3.6% 3.8% 3.9% 3.7% 3.7% 4.4% 3.2% 4.7% 5.0% 4.3% 0.16% 0.31% Mar-23 Mar-24 Mar-25 Jun-25 Sep-25 Dec-25 0.1% 0.2% 0.4% 0.2% 0.3% 0.7%0.5% 0.7% 0.9% 1.1% 1.0% 1.0% 1.1% 1.6% 1.4% 1.9% 2.1% 1.9% 0.07% 0.11% Mar-23 Mar-24 Mar-25 Jun-25 Sep-25 Dec-25 GNPA (%) NNPA (%) 30 1.1% 2.3% 6.8% 6.1% 2.9% 1.6% 0.3% 0.5% 1.4% 1.6% 1.3% 1.3% 3.9% 4.6% 4.5% 4.7% 4.0% 3.0% 0.11% 0.31% Mar-23 Mar-24 Mar-25 Jun-25 Sep-25 Dec-25 Mircofinance MSME 2W LAP
Page 31
9MFY26 – Standalone P&L Statement (2W, MSME & LAP ) Particulars (INR Crore) Q3FY26 Q3FY25 YoY% Q2FY26 QoQ% 9M FY26 9M FY25 YoY% Income from Operations 53.6 45.0 51.7 155.6 131.3 Other Income 0.3 -0.1 0.4 1.2 -0.8 Gross Total Income 54.0 44.9 20% 52.1 4% 156.9 130.5 20% Finance Costs 14.0 10.5 13.8 39.8 31.7 Net Total Income (NTI) 40.0 34.4 16% 38.3 4% 117.1 98.8 19% Employee Benefits Expenses 15.4 9.1 12.9 39.6 26.8 Depreciation and Amortisation 0.1 0.1 0.1 0.3 0.3 Other Expenses 5.0 3.3 4.8 14.1 9.5 Pre-Provision Operating Profit 19.5 21.9 -11% 20.4 -5% 63.1 62.2 1% Total Provisions & Write-offs 6.9 8.4 8.3 22.8 21.5 Profit Before Tax 12.6 13.5 -6% 12.1 4% 40.3 40.8 -1% Profit After tax 9.4 9.9 -5% 8.9 5% 30.8 30.4 1% 31Figures may not add up due to rounding off
Page 32
Standalone Business Performance AUM 75 77 410 454 460 473 489 83 78 75 75 91 19 Q 3 F Y 2 5 28 Q 4 F Y 2 5 36 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 512 560 572 623 657 Disbursement Gross Total Income* Yield (%) Gross NPA (%) Net NPA (%) (INR Crore) Two Wheeler Loans MSME LAP 25 16 91 130 94 99 115 25 16 32 9 Q 3 F Y 2 5 12 9 Q 4 F Y 2 5 13 10 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 125 151 117 140 163 37.3 41.6 40.7 40.6 41.8 5.0 6.1 4.9 4.9 5.6 0.9 Q 3 F Y 2 5 1.2 Q 4 F Y 2 5 1.9 Q 1 F Y 2 6 3.6 Q 2 F Y 2 6 4.2 Q 3 F Y 2 6 43.3 48.9 47.5 49.2 51.6 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 36.9% 26.3% 24.4% 36.7% 30.2% 21.8% 35.1% 25.6% 22.6% 34.4% 26.3% 21.4% 34.2% 27.0% 22.1% Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 3.4% 4.0% 0.0% 3.6% 3.2% 0.2% 3.8% 4.7% 0.0% 3.9% 5.0% 0.2% 3.7% 4.3% 0.3% Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 0.9% 1.5% 0.0% 0.9% 1.4% 0.1% 1.1% 1.9% 0.0% 1.0% 2.1% 0.1% 1.0% 1.9% 0.1% Note: Yield is calculated excluding DA income. *Inclusive of Two-wheeler, MSME loans and LAP and exclusive of treasury income 32
Page 33
Company’s wholly owned subsidiary ‘Namra Finance Limited’ offers microfinance to women Income from Operations includes Interest Income on loans and managed assets; processing fees, other charges in respect of loans and treasury income Particulars (INR Crore) Q3FY26 Q3FY25 YoY% Q2FY26 QoQ% 9MFY26 9MFY25 YoY % Income from Operations 106.5 120.9 107.5 315.8 402.1 Other Income 0.0 0.0 0.0 0.0 0.0 Gross Total Income 106.5 120.9 -11.9% 107.5 -0.9% 315.8 402.1 -21.5% Finance Costs 36.9 47.6 35.8 114.0 158.6 Net Total Income (NTI) 69.6 73.3 -5.0% 71.7 -2.8% 201.8 243.5 -17.1% Employee Benefits Expenses 23.5 18.8 23.5 69.2 53.3 Depreciation and Amortisation 0.3 0.4 0.3 1.0 1.0 Other Expenses 10.7 7.0 12.0 29.2 20.6 Pre-Provision Operating Profit 35.0 47.1 -25.6% 35.8 -2.2% 102.3 168.5 -39.3% Total Provisions & Write-offs 19.3 67.5 29.9 108.2 153.7 Profit Before Tax 15.7 -20.5 - 5.9 - -5.8 14.8 - Profit After tax 12.6 -17.2 - -0.9 - -16.0 8.1 - 9MFY26 - Namra Finance Profit & Loss Statement 33Figures may not add up due to rounding off
Page 34
Microfinance Business Performance – Namra Finance (1/2) AUM 1,768 1,686 1,554 1,507 1,618 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 Disbursement 214 393 270 335 455 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 Gross Total Income 121 150 102 107 107 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 Net Total Income 73 109 61 72 70 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 Pre-provision Operating Profit Profit / Loss After Tax -17.3 -0.3 -27.7 -0.9 12.6 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 47 77 32 36 35 Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 Q 3 F Y 2 6 ( I N R C r o r e ) 34
Page 35
Microfinance Business Performance – Namra Finance (2/2) Net Interest Margin (%) Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 11.9% 12.0% 12.4% 14.0% Q 3 F Y 2 6 14.8% Cost to Income Ratio (%) Yield (%) Asset Quality (%) Return on Average AUM (%) Return on Equity (%) NIMs and Yield are calculated excluding DA income Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 4.4% 0.6% 3.4% 0.4% 3.4% 0.2% 3.8% 0.3% Q 3 F Y 2 6 3.4% 0.7% GNPA NNPA Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 35.8% 29.5% 47.9% 50.1% Q 3 F Y 2 6 49.7% Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 22.1% 21.6% 22.6% 23.4% Q 3 F Y 2 6 24.2% Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 -3.7% -0.1% -6.8% -0.2% Q 3 F Y 2 6 3.2% Q 3 F Y 2 5 Q 4 F Y 2 5 Q 1 F Y 2 6 Q 2 F Y 2 6 -10.7% -0.2% -17.7% -0.6% Q 3 F Y 2 6 8.2% 35
Page 36
AUM and Disbursements Trends Total AUM (INR Crore) 61%32% 10%20% 70% F Y 1 8 14% F Y 1 7 15% 71% F Y 1 9 17% 11% 72% F Y 2 0 15% 6% 79% F Y 2 1 13% 4% 68% 83% F Y 2 2 13% 3% F Y 1 6 84% F Y 2 3 14% 3% 83% F Y 2 4 20% 36% 1% 75% F Y 2 5 172 204 453 3% 860 814 1,233 1,943 2,639 2,245 685 MSME 2-Wheeler LAP MFI + IBL Total Disbursements (INR Crore) 3%0% 33%64% F Y 1 7 10%17% 73% F Y 1 8 12% 12% 75% F Y 1 9 16% 10% 75% F Y 2 0 13% 5% 82% F Y 2 1 14% 4% 26% 82% F Y 2 2 13% 3% 74% 84% F Y 2 3 14% 3% 82% F Y 2 4 F Y 2 5F Y 1 6 248 547 778 880 509 1,024 248 2,297 1,713 72% 23% 2% 4% 1,767 • Small ticket unsecured loans - Ticket size INR 30,000 – 3,00,000 • Venturing secured LAP market from 3,00,000 to 20,00,000. Average Ticket Size – 5-6 lakhs. • Aim to deliver 3%-4% Post Tax ROA • Self-employed / cash cash-income informal segment customers • Plans to expand SME Portfolio in way that share of SME book increases to 35% and share of MFI Book reduces to ~60% over time. • Stringent underwriting • Rigorous collection practices – in-house, feet-on-the-street mode • Increasing focus on Digital Collections. ~25% collections coming digitally • UPI / E-NACH mandate is mandatory for all except JLG micro loans FY24, FY23, FY22, FY21 & FY20 figures are as per IND-AS, all the figures prior to FY19 are as per I-GAAP • Diversified portfolio of INR 2,274 Crore in Q3FY26 split between – • Microfinance: INR 1,332 Crore (58.6%), • MSME Loans: INR 489 Crore (21.5%), • 2-Wheeler Loans: INR 91 Crore (4.0%), • Loan Against Property: INR 77 Crore (3.4%) • Individual Business Loans: INR 285 Crore (12.5%) • Strategically forayed into MSME Loans in 2017. Successfully scaled up the business to ~INR 489 Crore (21.5% of total AUM). • Further, launched a new products Rural 2-wheeler loans, individual business loan and LAP loans (currently in pilot stage) to effectively meet the under-served market. • Started a pilot for Solar Loans across Gujarat 36
Page 37
Historical Metrics 54 78 141 215 195 235 424 662 730 31 44 78 128 116 146 252 396 491 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Gross Income Net Total Income Demonetization Gross and Net Total Income Yield & NIM (%) ( I N R C r o r e ) Asset Quality Profit After Tax Cost to Income Ratio % Return Ratios 28.3% 16.5% FY17 25.5% 14.0% FY18 24.4% 14.3% FY19 27.4% 16.5% FY20 21.5% 12.2% FY21 22.9% 14.2% FY22 26.7% 15.9% FY23 25.2% 13.8% FY24 FY25 25.2% 15.4% Yield NIM 1.2% 2.0% FY17 1.7% 2.6% FY18 1.0% 1.6% FY19 1.1% 2.6% FY20 4.6% 6.7% FY21 3.0% 3.3% FY22 2.7% 0.2% FY23 2.9% 0.3% FY24 FY25 3.4% 0.6% GNPA (% of Advances) Provisions & Write-offs (% of Avg. On-Book AUM) Demonetization 57.2% FY17 60.2% FY18 47.4% FY19 42.2% FY20 42.7% FY21 43.1% FY22 32.6% FY23 26.0% FY24 FY25 32.1% 3.3% 11.9% FY17 2.2% 12.9% FY18 4.6% 29.7% FY19 5.4% 28.1% FY20 1.3% 5.8% FY21 3.1% 15.6% FY22 5.9% 32.4% FY23 7.6% 27.8% FY24 FY25 2.1% 6.2% Return on Avg. AUM (%) Return on Avg. Equity (%) 6 7 36 42 11 32 94 174 52 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 ( I N R C r o r e ) Demonetization Demonetization Demonetization COVID-19 COVID-19 COVID-19 COVID-19 COVID-19 FY23, FY22, FY21 & FY20 figures are as per IND-AS, all the figures prior to FY19 are as per I-GAAP Demonetization COVID-19 37
Page 38
Annexure • Gross Interest Income = Interest Income + processing fees / other charges • Net Interest Margins = Net Interest Income / Average AUM (On + Off -Book) • Yields = Gross Interest Income / Avg. AUM (On + Off Off -Book) • Cost -to -Income Ratio = Opex (excl. provisions) / Net Total Income • GNPA % = GNPA / AUM (On -Book) • NNPA % = NNPA / AUM (On -Book) • Return on Average AUM = Profit After Tax / Quarterly Avg. AUM • Return on Equity = Profit After Tax / Quarterly Avg. Equity 38
Page 39
39 Contact Information Company: Arman Financial Services Limited CIN: L55910GJ1992PLC018623 Mr. Vivek Modi Executive Director & Group CFO Email : vivek@armanindia.com www.armanindia.com Investor Relations Advisors: Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285 Mr. Abhishek Shah / Ms. Krunali Shah abhishek.shah@sgapl.net / krunali.shah@sgapl.net +91 9930651660 / +91 9820987564 www.sgapl.net Thank You!