Arman Financial Services [NSE: ARMANFIN], a key player in India’s financial services industry, reported its Q1 FY26 results, showcasing a challenging quarter. The company posted a significant decline in revenue and a net loss of ₹14.6 crore, as compared to a profit of ₹12.8 crore in the previous quarter. Along with the results, investors are also keeping an eye on Arman Financial Services share price, which reflects market sentiment towards the company’s performance.
In terms of total revenue from operations, the company saw a drop of 18.1% YoY, with Q1 FY26 revenue coming in at ₹151.0 crore. This reduction was a direct impact of the continuing stress in the microfinance sector, which also contributed to the net loss. The company’s share price has been fluctuating as a result, with market participants keenly watching these developments.
Key Financial Results for Arman Financial Services Q1 FY26
| Particulars | Q1 FY26 (₹ Cr) | Q4 FY25 (₹ Cr) | Q1 FY25 (₹ Cr) | YoY Growth (%) | QoQ Growth (%) |
| Total Revenue from Operations | 151.0 | 199.4 | 184.4 | -18.1% | -24.3% |
| Total Income | 151.0 | 199.4 | 184.4 | -18.1% | -24.3% |
| Net Profit/Loss | (14.6) | 12.8 | 31.3 | – | – |
| Basic EPS (₹) | (13.9) | 12.2 | 29.9 | – | – |
| Diluted EPS (₹) | (13.8) | 12.1 | 29.6 | – | – |
Important Updates from Arman Financial Services’ Latest Financial Results
Net Loss of ₹14.6 Crore
Arman Financial Services posted a net loss of ₹14.6 crore in Q1 FY26, a stark contrast to the profit reported in Q1 FY25 of ₹31.3 crore and in Q4 FY25 of ₹12.8 crore. This decline is attributed to significant challenges in the microfinance sector, which have affected the company’s net interest income (NII) and credit costs.
Revenue Declines by 18.1%
The company’s total revenue from operations for Q1 FY26 stood at ₹151 crore, marking an 18.1% decline compared to Q1 FY25. This reduction in revenue is a reflection of the ongoing stress in the microfinance sector, which has impacted the overall financial performance.
Decline in Assets Under Management (AUM) by 16.9%
Arman Financial Services experienced a 16.9% decline in its Assets Under Management (AUM), primarily due to the microfinance sector’s challenges. The reduction in AUM, alongside other operational difficulties, contributed to the poor financial performance.
Employee Stock Options and Board Changes
The company granted 8,100 stock options to eligible employees under its “Arman Employee Stock Option Plan 2023” (ESOP Plan-2023), with options to convert into an equal number of equity shares upon exercise. Additionally, the company announced the re-appointment of Jayendra Patel as Vice Chairman & Managing Director and Yash Shah as Independent Director.
Looking Ahead
Arman Financial Services continues to focus on addressing the challenges in the microfinance sector, with a clear strategy to navigate these pressures in the coming quarters.
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