Key Financials Snapshot

TTM · Consolidated · ₹ in Cr
Market Cap
₹1606 Cr.
Stock P/E
28.4
P/B
1.7
Current Price
₹1522.9
Book Value
₹ 916.6
Face Value
10
52W High
₹2159.1
52W Low
₹ 1302.3
Dividend Yield
0%

Arman Financial Serv Overview

Business

Arman Financial Services Ltd. is an Indian Non-Banking Financial Company (NBFC) primarily engaged in providing credit to underserved and unserved populations in semi-urban and rural areas. Its core business model revolves around lending money and generating income through interest on these loans. The company specializes in providing various types of finance, including microfinance (loans to individuals or self-help groups for income-generating activities), two-wheeler and three-wheeler finance (for commercial and personal use), and MSME (Micro, Small, and Medium Enterprises) loans. It primarily targets financially excluded segments, offering tailored credit solutions.

Revenue Mix

Arman Financial Services operates predominantly through three main lending segments:

Microfinance (MFI): Providing small loans, typically to women's joint liability groups, for income-generating activities. This is often their largest segment by Asset Under Management (AUM).

Two-Wheeler (2W) and Three-Wheeler (3W) Finance: Lending for the purchase of two-wheelers and three-wheelers, often for commercial purposes like passenger transport (auto-rickshaws) or goods delivery.

MSME Finance: Loans to small and micro-enterprises.

While specific percentage breakdowns are not provided in the prompt, Microfinance typically forms a significant portion, followed by Two-Wheeler and Three-Wheeler finance.

Industry

Arman operates within India's highly competitive NBFC sector, which is regulated by the Reserve Bank of India (RBI). The industry is characterized by a diverse range of players, from large diversified NBFCs to niche, regional players. Arman Financial Services positions itself as a regional and rural-focused NBFC, specializing in financial inclusion. It competes with other microfinance institutions, small finance banks, regional NBFCs, and some mainstream banks operating in its target geographies (primarily Gujarat, Madhya Pradesh, Uttar Pradesh, Rajasthan, and Maharashtra). Its strength lies in its localized presence and understanding of its target customer base, rather than broad national scale.

MOAT

Arman's competitive advantages primarily stem from:

Deep Local Penetration & Network: An extensive branch network and on-the-ground presence in specific rural and semi-urban areas, which allows for better customer sourcing, credit assessment, and collection compared to larger, less localized financial institutions.

Localized Credit Underwriting: Expertise in assessing the creditworthiness of borrowers in underserved segments, who often lack formal credit histories, using proprietary methods and local intelligence.

Relationship-based Lending: Building long-term relationships and trust with borrowers in their operating areas, fostering loyalty and improving repayment behavior.

Nimble Operations: Compared to large banks, Arman can be more agile in product design, distribution, and adapting to local market needs.

Growth Drivers

Financial Inclusion Imperative: Persistent high demand for credit from India's vast underserved and unserved population, especially in rural and semi-urban areas.

Economic Growth: General economic growth in India, particularly in its operating regions, leads to higher income levels and increased demand for productive assets (2W/3W) and working capital (MFI/MSME).

Geographic Expansion: Expanding operations into new underpenetrated districts and states within its target demographic.

Digital Adoption: Leveraging technology for more efficient loan origination, servicing, and collections, potentially lowering operational costs and increasing reach.

Formalization of the Economy: Increased formalization benefits NBFCs like Arman by expanding the pool of potential borrowers and improving credit bureau data.

Risks

Credit Risk & Asset Quality: Lending to economically vulnerable segments inherently carries higher credit risk, leading to potential increases in Non-Performing Assets (NPAs) during economic downturns or localized shocks.

Interest Rate Volatility: Fluctuations in interest rates can impact the company's cost of funds, affecting net interest margins if lending rates cannot be adjusted commensurately.

Competition: Intense competition from other NBFCs, microfinance institutions, small finance banks, and fintech players can put pressure on margins and market share.

Regulatory Changes: Changes in RBI regulations concerning NBFCs, microfinance lending practices, or interest rate caps could significantly impact the business model and profitability.

Funding Risk: Dependence on external funding sources (banks, capital markets); any disruption in accessing funds or significant increase in borrowing costs could be detrimental.

Geographic Concentration: A high concentration of operations in a few states makes the company susceptible to adverse local economic or political events.

Management & Ownership

Arman Financial Services is promoted by the Patel family, who continue to hold a significant stake and play an active role in the company's management and strategic direction. The management team typically combines experience in the financial services sector with deep knowledge of the specific markets and customer segments they serve. The promoter-led structure often implies a long-term vision and commitment to the business, balanced by professional management practices. The ownership structure includes the promoter group, institutional investors, and public shareholders.

Outlook

Arman Financial Services is well-positioned to capitalize on India's vast financial inclusion opportunity and the consistent demand for small-ticket financing in rural and semi-urban areas. Its localized approach, strong borrower relationships, and focus on specific asset classes provide a foundational growth path. However, the company operates in a sector with inherent risks, including sensitivity to economic cycles, potential asset quality deterioration, intense competition, and a dynamic regulatory environment. Sustained growth and profitability will depend on its ability to maintain prudent risk management practices, manage funding costs effectively, judiciously expand its geographic footprint, and leverage technology for operational efficiency while navigating competitive pressures and regulatory changes.

Arman Financial Serv Share Price

Live · BSE / NSE · Inception: 1992
₹ | |
Volume
Price

Key Financials — Profit & Loss

₹ in Cr · Consolidated · annual

Arman Financial Serv Quarterly Results

#(Fig in Cr.) Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026 Jun 2026
Operating Revenue 183 184 181 165 199 151 159 160 176 202
Other Income 0 0 0 0 0 0 0 0 0 0
Total Income 183 184 181 165 199 151 159 160 176 202
Total Expenditure 55 78 93 114 134 110 91 80 80 80
Operating Profit 128 107 88 51 65 41 68 80 95 122
Interest Expense 63 65 65 57 52 52 50 51 53 64
Depreciation 0 0 0 0 0 0 0 0 0 0
Profit Before Tax 65 41 22 -7 13 -11 18 29 42 57
Provision for Tax 14 10 7 0 -0 3 10 6 1 12
Profit After Tax 51 31 15 -7 13 -15 8 22 41 45
Adjustments 0 0 0 0 0 0 -0 0 0 0
Profit After Adjustments 51 31 15 -7 13 -15 8 22 41 45
Adjusted Earnings Per Share 48.5 29.9 14.6 -6.9 12.2 -13.9 7.6 21.1 39 43

Arman Financial Serv Profit & Loss

#(Fig in Cr.) Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 Mar 2026 TTM
Operating Revenue 41 54 78 139 212 194 235 424 661 730 646 697
Other Income 0 0 1 1 4 1 0 0 0 0 0 0
Total Income 41 54 79 140 215 196 235 424 662 730 646 697
Total Expenditure 13 21 35 44 72 103 99 126 166 419 361 331
Operating Profit 28 33 44 96 143 93 136 298 495 311 285 365
Interest Expense 15 23 34 59 88 80 90 172 266 240 206 218
Depreciation 0 0 0 0 1 1 1 1 1 2 2 0
Profit Before Tax 12 10 10 36 54 12 46 125 228 69 77 146
Provision for Tax 4 4 2 10 12 1 14 31 55 17 21 29
Profit After Tax 8 6 7 26 42 11 32 94 174 52 57 116
Adjustments 0 0 0 0 0 0 0 0 0 0 0 0
Profit After Adjustments 8 6 7 26 42 11 32 94 174 52 57 116
Adjusted Earnings Per Share 11.3 8.2 10.3 38 49.1 12.5 37.4 110.5 165.7 49.6 53.8 110.7

Arman Financial Serv Balance Sheet

#(Fig in Cr.) Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 Mar 2026
Shareholder's Funds 50 56 57 123 172 187 213 366 813 874 933
Minority's Interest 0 0 0 0 0 0 0 0 0 0 0
Borrowings 46 48 222 572 674 662 974 1429 622 376 952
Current Liability 112 127 200 73 75 123 81 286 1248 1006 947
Other Liabilities & Provisions -0 -0 -0 -1 -4 -12 -15 -13 -15 -24 -18
Total Liabilities 208 231 478 767 917 960 1253 2067 2668 2233 2815
Loans 0 0 0 0 0 0 0 0 2033 1684 2213
Investments 1 2 3 3 3 3 6 19 0 0 0
Fixed Assets 2 3 3 4 4 4 5 6 8 31 32
Other Loans 26 27 77 0 0 0 0 0 0 0 0
Other Non Current Assets 7 6 11 0 0 0 0 0 41 32 26
Current Assets 172 194 385 760 910 953 1242 2042 586 486 544
Total Assets 208 231 478 767 917 960 1253 2067 2668 2233 2815

Arman Financial Serv Cash Flow

#(Fig in Cr.) Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 Mar 2026
Opening Cash & Cash Equivalents 14 7 17 8 38 58 88 76 26 119 68
Cash Flow from Operating Activities -1 21 -203 -221 -76 6 -281 -718 -302 493 -476
Cash Flow from Investing Activities -7 -2 -12 -1 2 2 -2 -13 18 -49 -50
Cash Flow from Financing Activities 1 -9 205 252 94 22 270 681 376 -495 546
Net Cash Inflow / Outflow -7 10 -9 30 20 30 -12 -49 92 -51 20
Closing Cash & Cash Equivalent 7 18 8 38 58 88 76 26 119 68 88

Arman Financial Serv Ratios

# Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 Mar 2026
Earnings Per Share (Rs) 11.31 8.19 10.27 38.02 49.13 12.51 37.36 110.47 165.67 49.64 53.84
CEPS(Rs) 11.81 9.56 11.07 38.71 50.08 13.46 38.48 111.83 167.03 51.35 55.45
DPS(Rs) 1.4 1 1 1.4 0 0 0 0 0 0 0
Book NAV/Share(Rs) 65.65 73.65 82.17 175.99 203.02 219.85 250.32 430.33 769.43 822.65 876.53
Net Profit Margin 19.65 11.8 9.35 19.03 19.63 5.46 13.5 22.13 26.24 7.13 8.76
Operating Margin 67.56 60.47 56.46 68.56 67.21 47.18 57.6 70.11 74.67 42.33 43.87
PBT Margin 29.75 18.42 12.55 26.08 25.43 6.05 19.37 29.48 34.48 9.46 11.98
ROA(%) 4.52 2.88 2.06 4.24 4.93 1.13 2.87 5.65 7.33 2.13 2.24
ROE(%) 18.98 13.11 13.52 29.49 28.25 5.93 15.89 32.46 29.63 6.24 6.34
ROCE(%) 17.16 16.34 13.34 16.04 17.71 10.31 12.83 18.74 21.91 13.31 11.77
Price/Earnings(x) 12.94 22.84 29.89 10.07 8.37 48.67 26.49 12.04 11.12 26.02 24.95
Price/Book(x) 2.23 2.54 3.73 2.17 2.03 2.77 3.95 3.09 2.39 1.57 1.53
Dividend Yield(%) 0.96 0.53 0.33 0.37 0 0 0 0 0 0 0
EV/Net Sales(x) 5.74 4.95 7.55 5.83 4.48 5.5 7.18 5.43 4.79 3.03 4.35
EV/Core EBITDA(x) 8.44 8.11 13.26 8.46 6.63 11.56 12.38 7.72 6.4 7.12 9.86
Interest Earned Growth(%) 37.47 31.65 45.61 78.08 52.26 -8.11 20.91 80.38 56.04 10.37 -11.53
Net Profit Growth 29.89 -20.93 15.37 262.29 57.09 -74.43 198.82 195.72 85.02 -70 8.7
EPS Growth(%) 27.25 -27.59 25.3 270.33 29.23 -74.54 198.71 195.7 49.98 -70.04 8.47
Interest Coverage(x) % 1.79 1.44 1.29 1.61 1.61 1.15 1.51 1.73 1.86 1.29 1.38

Growth Rates

Compounded annual
# 1 Year 3 Year 5 Year 10 Year
Sales CAGR -12% +15% +27% +32%
Operating Profit CAGR -8% -1% +25% +26%
PAT CAGR +10% -15% +39% +22%
Share Price CAGR -8% -13% +9% +18%
ROE Average +6% +14% +18% +18%
ROCE Average +12% +16% +16% +15%

Arman Financial Serv Shareholding Pattern

Latest · Jun 2026
100% held
Promoters 22 %
FII 3.08 %
DII (MF + Insurance) 4.86 %
Public (retail) 70.07 %
# Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026 Jun 2026
Promoter 22.0922.0922.0722.0722.0622.0522222222
FII 10.25.184.91.971.21.421.811.682.613.08
DII 6.296.165.034.514.925.084.835.034.184.86
Public 61.4166.5768.0171.4671.8271.4571.3771.2971.2170.07
Others 0000000000
Total 100100100100100100100100100100

Arman Financial Serv Peer Comparison

Finance - NBFC Edit Columns

Arman Financial Serv Quarterly Price

10-year quarterly close · BSE
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News & Updates

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Arman Financial Serv Pros & Cons

Pros

  • Company has delivered good profit growth of 38% CAGR over last 5 years

Cons

  • Promoter holding is low: 22%.
  • Company has a low return on equity of 14% over the last 3 years.
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