Arman Financial Services Limited loans rise 18% in six months

Arman Financial Services Limited reported consolidated loans of Rs 2,610.4891 crore at September 30, 2026, up 17.94% from Rs 2,213.4739 crore at March 31, 2026, as borrowings other than debt securities increased by Rs 355.8697 crore to Rs 1,277.3305 crore. The six-month loan increase was Rs 397.0152 crore.

What drove Arman Financial’s loan-book increase?

Arman Financial added Rs 397.0152 crore to its consolidated loan balance during the six months ended September 30, 2026, taking loans to Rs 2,610.4891 crore from Rs 2,213.4739 crore at March 31, 2026. That 17.94% rise made loans the largest item among the group’s financial assets at the reporting date.

Total consolidated assets increased by Rs 477.2732 crore over the same six months, reaching Rs 3,275.0834 crore at September-end from Rs 2,797.8102 crore at March-end. The loan increase represented most of that reported asset movement, while cash and cash equivalents rose by Rs 100.5788 crore and investments declined by Rs 33.0916 crore.

Arman Financial said the group is primarily engaged in financing and operates only in India. It also said there is no separate reportable operating segment under Indian Accounting Standard 108, so the filing does not break down the Rs 2,610.4891 crore loan balance by borrower category, location or subsidiary.

The consolidated results include Arman Financial as parent and Namra Finance Limited as its wholly owned subsidiary. The board reviewed and approved the unaudited consolidated financial results for the quarter and half year ended September 30, 2026 on November 4, 2026.

How was Arman Financial’s loan growth funded?

Arman Financial’s reported funding mix shifted mainly through borrowings other than debt securities, which rose 38.62% to Rs 1,277.3305 crore at September 30, 2026 from Rs 921.4608 crore six months earlier. The Rs 355.8697 crore increase was close to the Rs 397.0152 crore increase in consolidated loans over the same period.

Debt securities moved by a smaller Rs 4.6346 crore, reaching Rs 848.8963 crore from Rs 844.2617 crore. Subordinated liabilities were unchanged at Rs 10 crore. Together, these three reported debt lines totalled Rs 2,136.2268 crore at September 30, 2026, compared with Rs 1,775.7225 crore at March 31, 2026.

Arman Financial disclosed a debt-equity ratio of 2.07 times at September 30, 2026. Its stated formula adds debt securities, other borrowings and subordinated liabilities, then divides the total by equity share capital plus other equity. The filing reported net worth, defined as equity share capital plus other equity, of Rs 1,032.9143 crore at the same date.

The company also disclosed that total debts, defined for this ratio as debt securities plus borrowings other than debt securities, were 65.23% of total assets at September-end. This measure excludes the Rs 10 crore of subordinated liabilities that are included in its debt-equity calculation, reflecting the different definitions used in the Regulation 52 disclosure.

What do the cash flows and equity changes show?

Arman Financial reported net cash used in operating activities of Rs 294.0382 crore for the half year ended September 30, 2026. The cash-flow statement recorded an increase in loans and advances of Rs 400.7430 crore, while interest received was Rs 384.7425 crore and finance costs paid were Rs 137.7749 crore.

Net cash from financing activities was Rs 361.4106 crore in the half year. The filing showed Rs 852.3472 crore of proceeds from long-term borrowings and Rs 486.6256 crore of repayment of borrowings, indicating that reported financing inflows exceeded reported repayments during the period.

Cash and cash equivalents stood at Rs 188.3620 crore at September 30, 2026, compared with Rs 87.7832 crore at March 31, 2026. Bank balances other than cash and cash equivalents fell to Rs 301.5408 crore from Rs 311.0922 crore, while investments declined to Rs 59.3698 crore from Rs 92.4614 crore.

Other equity increased to Rs 1,022.3680 crore at September-end from Rs 922.8193 crore at March-end. Equity share capital increased by Rs 3.34 lakh to Rs 10.5463 crore after Arman Financial allotted 400 shares under its 2016 employee stock option scheme and 31,171 shares under its 2023 plan during the September quarter.

How did the larger loan base affect earnings and asset quality?

Arman Financial reported interest income of Rs 389.1581 crore for the half year ended September 30, 2026, compared with Rs 278.0065 crore in the corresponding prior-year half. Total revenue from operations rose to Rs 436.4198 crore from Rs 310.2110 crore, while fees and commission income increased to Rs 21.3030 crore from Rs 13.1953 crore.

Finance costs rose to Rs 137.4530 crore from Rs 101.8354 crore in the prior-year half. The filing reports both the higher finance cost and the September borrowing balances, but it does not assign the increase in expense to a specific borrowing instrument or funding source.

Half-year profit after tax was Rs 96.6509 crore, compared with a loss after tax of Rs 6.5900 crore a year earlier. Profit before tax rose to Rs 126.3229 crore from Rs 6.7689 crore, while impairment losses on financial assets fell to Rs 45.3502 crore from Rs 104.7855 crore.

Arman Financial reported gross Stage III loan assets of 2.73% of gross loan assets and net Stage III loan assets of 0.92% at September 30, 2026. Stage III is the classification used in the company’s regulatory ratio disclosure; the filing does not provide comparable March 31, 2026 Stage III ratios in that table.

What loan transfers did Arman Financial report?

Arman Financial transferred 51,319 loans that were not in default through direct assignment in the half year ended September 30, 2026. The transferred loans had a book value of Rs 353.5135 crore and generated sale consideration of Rs 305.7193 crore across eight transactions.

The company reported a weighted average remaining maturity of 19.48 months and a weighted average holding period after origination of 4.52 months for those half-year transfers. It retained 10% of beneficial economic interest in the transferred exposures, according to the direct-assignment disclosure.

For the September 2026 quarter alone, Arman Financial assigned 34,406 loans with a book value of Rs 235.8914 crore and sale consideration of Rs 199.8594 crore across three transactions. It said it did not transfer non-performing assets, acquire loans through assignment or acquire stressed loans during the half year.

Conclusion

Arman Financial’s September 2026 consolidated balance sheet shows that a Rs 397.0152 crore increase in loans occurred alongside a Rs 355.8697 crore increase in borrowings other than debt securities. Interest income rose to Rs 389.1581 crore in the half year, while impairment losses were lower than in the corresponding prior-year period and reported gross Stage III loans were 2.73% of gross loan assets.

The next disclosed items to watch are the movement in loan balances relative to the company’s funding lines and its 2.07-times debt-equity ratio, as well as subsequent Stage III loan ratios. Investors can also monitor further direct assignments after the 51,319 loans transferred in the half year ended September 30, 2026 and any future disclosures under the Reserve Bank of India transfer-of-loan-exposures framework.