Arman Financial Services' Q2 FY 2025-26 Quarterly Results

Result Summary

• Arman Financial Services Ltd reported a 5.4% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 12.3%.
• Its expenses for the quarter were up by 7.7% QoQ and down 0.9% YoY.
• The net profit decreased 154.8% QoQ and decreased 47.7% YoY.
• The earnings per share (EPS) of Arman Financial Services Ltd stood at 7.55 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

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Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Arman Financial Services Ltd is a non-banking financial company (NBFC) that operates in the financial services industry. The company is primarily engaged in providing microfinance services, focusing on small and medium-sized enterprises (SMEs) and retail customers. It offers a range of financial products and services, including loans for business expansion, working capital needs, and personal consumption. Arman Financial Services Ltd has established a presence in rural and semi-urban areas, contributing to financial inclusion by offering accessible financial solutions to underserved communities. While the company has been actively expanding its reach, specific recent developments or strategic initiatives were not available in the provided data.

Revenue

In the second quarter of fiscal year 2026 (Q2FY26), Arman Financial Services Ltd reported total income of ₹159.21 crores. This represents a 5.4% increase from the previous quarter (Q1FY26), where total income stood at ₹151.00 crores. However, on a year-over-year basis, the total income decreased by 12.3% from ₹181.49 crores in Q2FY25. The quarterly growth indicates an upward trend in revenue generation, while the year-over-year decline reflects certain challenges in sustaining income levels compared to the previous fiscal year. The variation in revenue metrics underscores the dynamic nature of the company's financial performance over different periods.

Profitability

During Q2FY26, Arman Financial Services Ltd recorded a Profit Before Tax (PBT) of ₹17.94 crores, recovering from a loss of ₹11.17 crores in Q1FY26. This turnaround marks a significant quarter-over-quarter change of -260.6%. Comparing year-over-year figures, PBT decreased by 19.6%, down from ₹22.31 crores in Q2FY25. The tax expense for Q2FY26 was ₹9.94 crores, a substantial increase of 190.6% from Q1FY26 and a 41.0% rise from Q2FY25. Consequently, Profit After Tax (PAT) for Q2FY26 was ₹7.99 crores, reflecting a recovery from a loss in the previous quarter but a 47.7% decline from Q2FY25's ₹15.27 crores. Earnings Per Share (EPS) followed a similar pattern, improving from negative figures in Q1FY26 but decreasing significantly year-over-year.

Operating Metrics

Total expenses for Arman Financial Services Ltd in Q2FY26 amounted to ₹103.00 crores, representing an increase of 7.7% from ₹95.66 crores in Q1FY26. When compared year-over-year with Q2FY25, expenses decreased slightly by 0.9% from ₹103.92 crores. This balance in expense management indicates a moderate level of control over operational costs. The financial data reflects the company's efforts to manage operational expenditures effectively while navigating through the fluctuations in income and profitability. These operating metrics provide a comprehensive view of the company's financial discipline and strategic approach to maintaining its operations amidst varying revenue scenarios.