Arman Financial Services (ARMANFIN) investor relations material

Executive summary

• Q1 FY2027 began with encouraging trends, including stable collections, moderated delinquencies, and improved borrower behavior across geographies.

• Consolidated AUM reached INR 2,925 crore, up 36% year-on-year, with disbursements at INR 686 crore, the highest-ever for a first quarter.

• Total income rose 34% year-on-year to INR 202 crore; profit after tax reached INR 45 crore, a turnaround from a loss in Q1 FY2026.

• Active customer base stands at approximately 6.3 lakh, with collection efficiency at 96.6% for the quarter.

• Board approved unaudited financial results; 3,600 ESOPs granted and a new Head – Internal Audit appointed.

Financial highlights

• Gross total income for Q1 FY2027 was INR 202 crore, up 34% year-on-year; net total income at INR 138 crore.

• Pre-provisioning operating profit rose to INR 77 crore; profit after tax was INR 45 crore, compared to a loss in Q1 FY2026.

• Cost-to-income ratio improved to 44.0%-44.3% from previous periods.

• Net worth (consolidated) as of June 30, 2026, stood at ₹97,889.10 lakhs.

• Basic EPS (consolidated) for Q1 FY27 was ₹42.96, compared to negative ₹13.90 in Q1 FY26.

Outlook and guidance

• Growth will remain careful and calibrated, with ongoing monitoring of collections, early delinquencies, borrower cash flows, and macroeconomic conditions.

• Focus on expanding MSME portfolio to 35% of AUM, reducing microfinance share to ~60% over time.

• OPEX targeted to reduce to 7% by March, with current trends showing improvement.

• Continued emphasis on digital collections, with ~40% of collections now digital.

• Continued focus on compliance, risk management, and operational growth.