Arman Financial Services Limited (ARMANFIN) AI Stock Analysis

• Market Cap: ₹14.10B
• Dividend Yield: N/A
• Average Volume (3M): 1.74K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.15
• Revenue Growth: -6.03%
• EPS Growth: -100.77%
• Country: IN
• Employees: 951
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 21.10
• Shares Outstanding: 10,512,921
• 10 Day Avg. Volume: 1,643
• 30 Day Avg. Volume: 1,739
• PEG Ratio: -0.36
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 3.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹1,415.00 ▼(-8.90% Downside)
• Action: Reiterated Date: 01/22/26
• Date: Action: Reiterated 01/22/26

The score is primarily supported by solid financial performance (revenue growth and improved cash flows), but is held back by elevated leverage on the balance sheet and weak valuation signals (negative P/E). Technicals are neutral, with mixed momentum indicators.

Positive Factors

Improved cash generation

Operating cash flow has turned positive and free cash flow is described as healthy, indicating the company is better able to self-fund loan growth and absorb short-term shocks. Sustained cash generation reduces reliance on volatile market funding and supports reinvestment and provisioning over the medium term.

Robust gross margins

The income summary highlights strong top-line expansion and robust gross profit margins, reflecting efficient origination and servicing of small-ticket loans. Durable gross margin strength supports scalability and the ability to cover operating costs and credit provisions, underpinning medium-term profitability resilience.

Focused microfinance model

A branch-led, field-originated focus on microfinance and underbanked customers creates structural demand and customer stickiness. Deep local distribution and tailored small-ticket products provide competitive differentiation, predictable origination pipelines, and long-term growth opportunities in underserved segments.

Negative Factors

High leverage

A high debt-to-equity ratio signals material reliance on external funding. That leverage increases sensitivity to rising interest rates and refinancing risk, constrains capital allocation flexibility, and leaves less room to absorb higher credit costs or macro stress without compromising growth or capital buffers.

Declining earnings trends

Recent negative revenue growth and a large decline in EPS point to volatility in core earnings generation. If the trend persists, it can impair retained earnings accumulation, weaken capital ratios, and limit the firm's ability to organically deleverage or invest in distribution, hampering medium-term strategic options.

Moderate net profitability

Despite healthy gross margins, the company's net profit margin is described as only moderate, suggesting operating expenses, funding costs, or credit provisioning materially compress bottom-line returns. Sustained moderate net margins reduce capacity to build equity buffers and fund growth from internal cash.

Arman Financial Services Limited Business Overview & Revenue Model

Company Description

Arman Financial Services Limited, together with its subsidiary, Namra Finance Limited, operates as a non-banking finance company in India. It offers financing for the purchase of two and three wheelers. The company also provides loans to micro, small, and medium enterprises; and group based microfinance services. It operates through a network of 239 branches and approximately 55 dealer touchpoints. The company was incorporated in 1992 and is headquartered in Ahmedabad, India.

How the Company Makes Money

ARMANFIN primarily makes money by lending: it raises funds (e.g., from banks, capital markets, or other funding sources) and deploys that capital into loans, earning interest income on the outstanding loan portfolio. Its core revenue stream is the net interest income (the spread between interest earned from borrowers and the cost of funds). In addition to interest income, it can earn fee-based income related to loan processing and other borrower-facing charges; the availability and materiality of specific fee categories is null. Profitability is influenced by loan growth, portfolio yield, funding costs, operating efficiency (branch and staff costs required to originate and service small-ticket loans), and credit performance (delinquencies, write-offs, and provisioning). Any significant partnerships (such as co-lending, securitization partners, or distribution tie-ups) and their contribution to earnings are null due to insufficient specific information provided here.

Arman Financial Services Limited Financial Statement Overview

Summary

Strong revenue growth and improving operating cash flow support fundamentals, but a high debt-to-equity ratio raises balance-sheet risk and keeps the score from being higher.

Income Statement

Arman Financial Services Limited shows strong revenue growth with a significant increase from the previous year. The gross profit margin is robust, suggesting efficient cost management. However, the net profit margin is moderate, indicating room for improvement in overall profitability.

Balance Sheet

The company's debt-to-equity ratio is high, reflecting a heavy reliance on debt financing which could pose a risk in interest rate hikes or economic downturns. However, the increase in stockholders' equity is a positive sign of improving financial stability.

Cash Flow

The operating cash flow has improved significantly, turning positive after a previous negative trend, indicating better cash management. The free cash flow is healthy, suggesting good liquidity, although the company should focus on sustaining this trend to ensure long-term stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.17B	6.17B	5.87B	3.89B	2.23B	1.88B
Gross Profit	2.70B	2.84B	2.64B	1.68B	957.61M	763.56M
EBITDA	2.26B	709.74M	2.30B	1.26B	465.90M	126.32M
Net Income	61.85M	520.73M	1.74B	938.11M	317.23M	106.16M
Balance Sheet
Total Assets	0.00	22.27B	26.35B	20.38B	12.41B	9.40B
Cash, Cash Equivalents and Short-Term Investments	0.00	4.52B	5.32B	4.53B	1.42B	1.55B
Total Debt	0.00	12.32B	17.25B	16.04B	9.90B	7.21B
Total Liabilities	-8.74B	13.53B	18.22B	16.72B	10.29B	7.54B
Stockholders Equity	8.74B	8.74B	8.13B	3.66B	2.13B	1.87B
Cash Flow
Free Cash Flow	0.00	4.67B	-3.05B	-7.20B	-2.82B	54.70M
Operating Cash Flow	0.00	4.93B	-3.02B	-7.18B	-2.81B	59.12M
Investing Cash Flow	0.00	-488.04M	183.80M	-126.16M	-19.68M	15.20M
Financing Cash Flow	0.00	-4.95B	3.76B	6.81B	2.70B	221.97M

Arman Financial Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1553.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ARMANFIN, the sentiment is Negative. The current price of 1553.2 is below the 20-day moving average (MA) of 1578.77, below the 50-day MA of 1566.14, and below the 200-day MA of 1577.59, indicating a bearish trend. The MACD of -46.38 indicates Positive momentum. The RSI at 25.58 is Positive, neither overbought nor oversold. The STOCH value of 4.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ARMANFIN.

Arman Financial Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TFCILTD	66 Neutral	₹29.43B	23.71	―	0.92%	5.73%	12.29%
PAISALO	65 Neutral	₹30.12B	12.44	―	0.29%	11.75%	-6.52%
ARMANFIN	61 Neutral	₹14.10B	18.43	―	―	-6.03%	-100.77%
MUTHOOTMF	51 Neutral	₹26.11B	-9.86	―	―	-10.17%	-181.71%
SPANDANA	48 Neutral	₹20.55B	-5.67	―	―	-45.13%	-1646.01%
UGROCAP	45 Neutral	₹14.16B	13.46	―	―	33.99%	11.65%

Arman Financial Services Limited Corporate Events

Arman Financial Services Releases Unaudited Financial Results for September 2025

Arman Financial Services Limited has released its unaudited financial results for the quarter and half-year ended September 30, 2025. These results, reviewed by the audit committee and approved by the board of directors, show no changes in financial outcomes. The statutory auditor, Laxminiwas & Co., conducted a limited review, ensuring compliance with SEBI regulations. This announcement reflects the company’s commitment to transparency and regulatory compliance, potentially impacting its market perception and stakeholder confidence.