Arman Financial Services Ltd is an RBI-registered category 'A' Non-Banking Finance Company, headquartered in Ahmedabad, Gujarat. Initially incorporated as `Arman Lease & Finance Limited` on November 26, 1992, the company subsequently changed its name to `Arman Financial Services Limited` in March 2008.
The company operates as a specialized financial services provider, focusing on underserved markets across India. It provides loans to the unorganized sector residing in rural and semi-rural locales across eight states: Gujarat, Madhya Pradesh, Uttar Pradesh, Maharashtra, Uttarakhand, Rajasthan, Haryana, and Bihar. Through a distribution network of 336 branches and over 55 two-wheeler dealerships spread across 120 districts, Arman Financial Services serves approximately 6.2 lakh customers. Including its subsidiary, the company reaches around 7.6 lakh customers through about 400 branches.
Arman Financial Services and its subsidiary, Namra Finance Ltd, provide three core financial services: Two-Wheeler Finance, Group-Based Microfinance, and Micro-Enterprise (MSME) Loans. This diversified portfolio caters to the financial needs of rural and semi-urban populations who typically have limited access to traditional banking services.
This segment provides financing for various models of motorcycles, mopeds, scooterettes, and scooters from major manufacturers like Hero, Honda, Bajaj, TVS, HMSI, Suzuki, Yamaha, and Royal Enfield. This service targets the growing demand for personal mobility solutions in rural and semi-urban areas.
The company's wholly-owned subsidiary (WOS), Namra Finance Ltd, offers small-ticket loans to women under the Joint Liability Group (JLG) model. These loans are primarily for income-generating activities such as livestock, dairy, agriculture-related businesses, and Kirana stores. Namra Finance operates through 392 MFI branches, serving 6.56 lakh active customers across 11 states, focusing on financial inclusion for women entrepreneurs in rural areas.
Arman Financial Services also focuses on small ticket retail loans for the large, underserved informal segment customers in rural and semi-urban geographies. The company provides financing solutions to micro, small, and medium enterprises to support business growth and expansion.
Arman Financial Services Ltd has a market capitalisation of ₹1,496 Crore as of May 09, 2025. The company's market cap has seen a decline of -15.2% over the last year, as reported by Screener, indicating some market volatility.
The company's financial performance in the fiscal year ended March 2025 has shown a mixed trend:
* Revenue Growth: Sales rose by 10.37% to ₹730.04 crore in the year ended March 2025, compared to ₹661.46 crore in the previous year ended March 2024.
* Profit Decline: Net profit for the full year declined significantly by 70.00% to ₹52.07 crore in the year ended March 2025, down from ₹173.57 crore in the previous year ended March 2024.
* Q4 FY2024-25 Performance: The company reported a net loss of ₹7.26 crore in the quarter ended December 2024, in contrast to a net profit of ₹42.00 crore during the previous quarter ended December 2023.
* Revenue (FY2024-25): ₹730 Crore
* Profit (FY2024-25): ₹52.1 Crore
* Promoter Holding: 22.1%
* P/E Ratio (ARMANFIN): 17.43
* P/B Ratio (ARMANFIN): 1.82
The company has faced significant challenges in recent quarters, particularly within the microfinance sector. In Q4 FY 2024-25, Namra Finance's net profit saw a substantial decline from ₹138.3 crores to ₹7.8 crores due to increased provisioning linked to rural stress. Despite these headwinds, Arman Financial Services demonstrated resilience with a 25% AUM (Assets Under Management) growth.
CARE Ratings reaffirmed its A- rating for Arman Financial and Namra Finance, but the outlook was revised from Stable to Negative. This rating change reflects the challenging operating environment and increased credit risks observed in the microfinance sector.
Despite a cautious outlook, the industry is gradually shifting towards individualized lending models, driven by digital advancements and a need for tailored assessments. While this may increase operational costs, it is expected to enhance credit quality. The company is actively prioritizing asset recovery and maintaining a healthy debt-equity ratio. Furthermore, Arman Financial Services is adapting its credit evaluation processes to improve risk management and navigate the evolving market landscape.
The company continues to focus on serving the underbanked population in rural and semi-urban India while navigating the challenging operating environment in the microfinance sector. Overall, while the market sentiment remains cautious, there are signs of potential stabilization as operational efficiencies improve.
The management team includes Alok Prasad as Chairman and Jaimish Govindbhai Patel as the Company Secretary for Arman Financial Services Ltd. The company is committed to maintaining strong governance practices as a publicly listed entity on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
The stock symbol for Arman Financial Services Ltd is ARMANFIN. The company's shares are listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), offering investors liquidity and transparency in trading.
* 52-week High: ₹2,541.70
* 52-week Low: ₹1,109.95
These figures indicate significant volatility in the stock's performance over the past year.
