Investor Presentation

Here's a concise summary for Arman Financial Services: **Business Performance:** Arman Financial delivered a strong Q3FY26. Assets Under Management (AUM) grew 6.8% QoQ to ₹2,274 Cr, with disbursements up 26.7% YoY to ₹618 Cr.

Profit After Tax (PAT) surged to ₹22.2 Cr, a significant turnaround from a loss in Q3FY25 and a sharp rise QoQ.

Asset quality improved with GNPA at 3.40% and NNPA at 0.77%. Microfinance (58.5%) and MSME (21.5%) remain core segments, supported by a 96% collection efficiency for 9MFY26. **Growth Drivers or Strategy:** The company targets underserved rural and semi-urban markets with small-ticket loans.

Key strategies include robust in-house credit and collection, leveraging digital tools like the Arman Suvidha app for efficiency, and diversifying product lines and geographies for sustainable growth. **Recent Developments:** Arman launched Loan Against Property (LAP) in Q4FY24 and a pilot for Solar Loans in Gujarat during Q3FY26, expanding its secured lending portfolio.

Strategic capital raises in 2022-23 strengthen its funding for future growth. **Management Commentary / Outlook:** Management aims for a sustained 3-4% Post Tax Return on Average AUM.

The focus is to grow the MSME loan share to 35% while gradually reducing Microfinance to ~60% of the portfolio.

This strategy, backed by healthy capital, targets achieving over ₹5,000 Cr AUM.