Press Release

Registered Office: 502-503, SAKAR III, OPP. OLD HIGH COURT, OFF ASHRAM ROAD, AHMEDABAD-380014, GUJARAT, INDIA PH.: +91-79-40507000, 27541989 E-mail: finance@armanindia.com CIN: L55910GJ1992PLC018623 November 04, 2026 To, To, BSE Limited National Stock Exchange of India Limited P. J. Tower, “Exchange Plaza” C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai–400001 Bandra, Mumbai- 400051 Script Code: 531179 Symbol: ARMANFIN ISIN: INE109C01017 Series: EQ Dear Sir / Madam, Subject: Press Release on Q2 FY 2026-27 Pursuant to Regulation 30 of the SEBI (Listing Obligations ad Disclosure Requirements) Regulations, 2015, we are enclosing herewith the Press Release on Unaudited Financial Results for the quarter and half year ended September 30, 2026, as approved by the Board of Directors at its meeting held on November 04, 2026. The same is also being made available on the website of the Company. Kindly take it on your record. Thanking you, Yours faithfully, For, Arman Financial Services Limited Uttam Patel Company Secretary & Chief Compliance Officer Arman Financial Services Limited Ahmedabad, Gujarat, November 4, 2026: Arman Financial Services Limited (NSE: ARMANFIN, BSE: 531179), a Gujarat-Based Non-Banking Financial Company (NBFC), with interests in microfinance, micro-enterprise (MSME) loans, two-wheelers loans and Loan Against Property (LAP) announced its financial results for the quarter ended 30th September 2026. The financial numbers are based on Ind-AS. Business Performance: Particulars (INR Crore) Q2FY27 Q2FY26 YoY Q1FY27 QoQ H1FY27 H1FY26 YoY Assets Under Management 3,209 2,130 51% 2,925 10% 3,209 2,130 51% Gross Total Income 235 159 48% 202 16% 436 310 41% Pre-Provisioning Operating Profit 95 56 70% 77 23% 172 112 54% Profit After Tax 51 8 544% 45 14% 97 -7 NA • Consolidated AUM stood at INR 3,209 crore as of September 30, 2026, registering a growth of 51% YoY and 10% QoQ, crossing INR 3,000 crore milestone for the first time • Consolidated disbursements for Q2 FY27 stood at INR 818 crore, registering a growth of 72% YoY as from INR 475 crore in Q2 FY26. o H1 FY27 consolidated disbursements stood at INR 1,505 crore, registering a growth of 74% over H1 FY26. o Growth was led by continued traction in Individual Lending, while rejection rates remained high and underwriting standards were maintained. • Net Total Income for Q2 FY27 stood at INR 161 crore, while Pre-Provision Operating Profit (PPoP) stood at INR 95 crore • Profit After Tax reached an all-time high of INR 51 crore in Q2 FY27, registering a growth of 544% YoY and 14% QoQ, reflecting a significant improvement in profitability. • Arman has already surpassed its full-year FY26 profit in the first half of FY27, with H1 FY27 PAT of INR 97 crore compared with INR 57 crore for the whole of FY26. • Shareholders' Equity as of September 30, 2026, stood at INR 1,033 Crore Borrowing & Liquidity Profile: • Total borrowings stood at INR 2,659 Crore (Including off balance sheet direct assignment (DA) liability) • Of the total borrowings, 31.3% is through banks, 16.3% is through NBFCs & FIs, 32.0% is through NCDs and 19.6% is through direct assignments & (off-balance-sheet liabilities). The rest is borrowed from DFIs and others. • ALM position remains positive, with continued access to diversified funding sources, including DA and NCDs, along with support from existing lending partners. • As on 30th September 2026, the Company has healthy liquidity position with INR 334 Crore in cash/bank balance, liquid investments, and undrawn CC limits • Additionally, the company has INR 145 Crore undrawn sanctions from existing lenders Collection Efficiency: • Collection efficiency for the quarter stood 96.5%. • Segment-wise collection efficiency for the month of September 2026 was: o Microfinance segment – 96.2% o MSME segment – 96.5% o 2W segment – 96.4% Asset Quality: • GNPA stood at 2.73%; NNPA stood at 0.92% • Cumulative Provisions stood at INR 80 Crore as on 30th September 2026 (covering 2.5% of the consolidated AUM, 2.94% on book) Standalone Business (Two-Wheeler, MSME Segment, Loan Against Property): Particulars (INR Crore) Q2FY27 Q2FY26 YoY Q1FY27 QoQ H1FY27 H1FY26 YoY Assets Under Management 784 623 26% 758 3% 784 623 26% Gross Total Income 68 52 30% 66 3% 134 103 30% Pre-Provisioning Operating Profit 27 20 34% 24 14% 51 44 18% Profit After Tax 17 9 95% 15 19% 32 21 50% • Assets under Management for the MSME, Two-Wheeler, LAP stood at INR 784 Crore o AUM for MSME - INR 583 Crore o AUM for Two-Wheeler - INR 94 Crore o AUM for LAP - INR 104 Crore o AUM for Solar Loans – INR 3 Crore • Total Disbursement for the MSME, Two-Wheeler and LAP stood at INR 164 Crore in Q2FY27. • Net total income for Q2FY27 stood at INR 49 Crore, registering a 28% year-on-year growth. • Pre-Provision Operating Profit (PPoP) for the quarter stood at INR 27 Crore. • Profit After Tax improved by 95% year on year to INR 17 Crore • GNPA for MSME stood at 3.34%; while NNPA stood at 0.49%. • GNPA for Two-Wheeler stood at 3.24%; while NNPA stood at 1.49%. • GNPA for LAP stood at 1.50%; while NNPA stood at 1.15%. • Company has a strong capital base with a capital adequacy ratio of 36.26% as on 30th September 2026. Microfinance Segment (Namra) Particulars (INR Crore) Q2FY27 Q2FY26 YoY Q1FY27 QoQ H1FY27 H1FY26 YoY Assets Under Management 2,424 1,507 61% 2,167 12% 2,424 1,507 61% Gross Total Income 168 107 56% 138 22% 306 209 46% Pre-Provisioning Operating Profit 67 36 88% 52 30% 119 67 77% Profit After Tax 34 -1 NA 30 14% 63 -29 NA • As of 30th September 2026, Namra’s AUM stood at INR 2,424 reporting a growth of 61% YoY • Disbursements during Q2 FY27 stood at INR 654 crore, supported by healthy traction in the Individual Loan segment. • Gross Total Income for Q2FY27 stood at INR 168 crore, up 56% YoY and 22% QoQ, while Net Total Income stood at INR 113 crore. • Profit After Tax (PAT) stood at INR 34 crore in Q2 FY27, compared to a loss of INR 1 crore in Q2FY26 • Total ECL Provisions decreased by 10% YoY to INR 52 Crore with the improvement in asset quality and CGFMU cover. • Write-off (net of recovery) during the quarter stood at INR 12 crore, with improved collection trends supporting a gradual improvement in portfolio quality. • Active MFI Customers stood at ~5.05 lakh. • GNPA stood at 2.59%; NNPA stood at 1.01% as on 30th September 2026. • As on 30th September 2026; the capital adequacy ratio for Namra stood at 37.19%. Commenting on the Company’s performance, Mr. Aalok Patel, Vice Chairman & Managing Director, Arman Financial Services said, “Q2 FY27 has been an important quarter for Arman, with our consolidated AUM crossing INR 3,000 crore for the first time and our highest-ever quarterly profit of INR 51 crore. More importantly, the improvement in the operating environment that we started seeing in the second half of FY26 has now continued for four consecutive quarters. We are seeing growth, improving profitability, and better asset quality at the same time. I believe this is a reflection of the changes we have made to our underwriting and collection practices over the past two years, particularly during what has been a very difficult period for the microfinance industry. Collection trends have remained largely stable across our operating geographies, fresh delinquencies have continued to decline, and overall repayment behaviour has improved. While the external environment has certainly helped, I believe a large part of this improvement is also attributable to the changes we have made internally. We continue to be very selective in our lending, and our rejection rates remain high. I am comfortable with that. We would much rather lose out on some business today than compromise on the quality of our portfolio. This does not mean that we are not keen to grow. It simply means that the lessons we have learnt over the past two years must be reflected in how we make lending decisions going forward. Despite this cautious approach, growth [Showing first 8,000 characters — download PDF for full document]