Investor Presentation

Here's a summary of Arman Financial Services' performance and strategy: **1. Financial Highlights:** Arman Financial reported a consolidated Q1FY26 net loss of INR 15 Crore, primarily due to INR 67 Crore in provisions impacting its Microfinance segment.

Standalone operations, however, remained profitable.

AUM was INR 2,156 Crore (-17% YoY), while disbursements grew 16% to INR 387 Crore.

GNPA: 3.45%, NNPA: 0.51%. **2. Strategic Initiatives & Growth Drivers:** The company targets INR 5,000+ Crore AUM, planning to boost its higher-ROA MSME portfolio share and reduce Microfinance exposure.

Expansion into secured LAP is underway, complemented by digital initiatives like the Arman Suvidha App for enhanced operational efficiency. **3. Business Developments:** Arman's AUM is diversified across Microfinance, MSME, Two-Wheeler, and LAP segments.

It serves approximately 6.8 Lakh customers via 492 branches in 11 states, backed by strong liquidity and recent credit rating upgrades. **4. Market Position & Competitive Advantage:** Focusing on under-served rural/semi-urban retail markets, Arman's competitive edge stems from its in-house, rigorous credit appraisal and collection practices.

It maintains a conservative operations framework, targeting a sustainable 4-5% Post Tax ROA. **5. Investor Implications:** Q1FY26's consolidated loss reflects broader microfinance sector headwinds.

Yet, Arman's strategic shift to higher-yielding segments, robust capitalisation, and digital adoption suggest positive growth potential.

Investors should closely monitor execution and MFI asset quality.