Arman Financial Services Limited (ARMANFIN) AI Stock Analysis

• Market Cap: ₹16.97B
• Dividend Yield: N/A
• Average Volume (3M): 1.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -6.03%
• EPS Growth: -100.77%
• Country: IN
• Employees: 951
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 7.60
• 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: 60 Neutral
• Price Target: ₹1,665.00 ▲(7.20% Upside)

The score is primarily supported by solid financial performance (revenue growth and improving operating/free cash flow), but it is held back by high leverage and mixed technical momentum (negative MACD despite being above key moving averages). Valuation is a significant drag due to a negative P/E and no dividend yield data.

Positive Factors

Improved operating and free cash flow

Sustained positive operating cash flow and healthy free cash flow enhance the firm’s ability to fund loan origination, meet interest and covenant obligations, and support strategic investments without immediate reliance on market funding, improving resilience over months.

Robust gross profit margin

A strong gross margin indicates durable core lending spread and operational efficiency in originating small-ticket loans. This structural profitability buffer helps absorb funding cost increases or elevated credit costs, supporting sustainable earnings over a multi-month horizon.

Rising shareholder equity

An expanding equity base strengthens capital adequacy, reduces leverage ratios and improves lender and regulator confidence. This structural improvement supports scalable lending, access to cheaper funding, and cushions against credit losses over the medium term.

Negative Factors

High leverage / debt reliance

Elevated debt-to-equity makes the business sensitive to interest rate rises and funding stress, constraining strategic flexibility. For an NBFC, high leverage increases refinancing and liquidity risk and limits ability to expand lending during adverse conditions over coming months.

Moderate net profit margin

Moderate net margins constrain internal capital generation and reduce the buffer against loan losses or rising funding costs. This structural profitability limitation could require sustained cost control or higher yields to support growth without increasing leverage over the medium term.

Negative reported revenue growth

A reported decline in revenue growth suggests slowing loan book expansion or pricing pressure. Persisting negative top-line trends reduce scale economics, limit margin recovery and make the company more dependent on funding markets and operational improvements to restore durable earnings growth.

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

Arman Financial Services Limited generates revenue through several key streams. The company earns fees from investment advisory services, where clients pay for expert guidance on asset allocation and portfolio management. Additionally, ARMANFIN charges management fees for overseeing investment funds, which are typically a percentage of the assets under management (AUM). Performance fees may also apply, particularly in hedge fund structures, where the company takes a percentage of profits above a predetermined benchmark. Furthermore, ARMANFIN may engage in partnerships with financial institutions to offer co-branded products, earning referral fees or commissions on sales. The company also benefits from interest income on financial products and services offered to clients, contributing to its overall earnings.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• Last Price: 1553.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ARMANFIN, the sentiment is Positive. The current price of 1553.2 is below the 20-day moving average (MA) of 1564.67, above the 50-day MA of 1547.63, and below the 200-day MA of 1574.34, indicating a bullish trend. The MACD of 15.72 indicates Negative momentum. The RSI at 57.91 is Neutral, neither overbought nor oversold. The STOCH value of 77.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹30.21B	24.83	―	0.92%	5.73%	12.29%
PAISALO	65 Neutral	₹31.13B	14.88	―	0.29%	11.75%	-6.52%
ARMANFIN	60 Neutral	₹16.97B	-1,538.01	―	―	-6.03%	-100.77%
UGROCAP	53 Neutral	₹20.47B	9.45	―	―	33.99%	11.65%
MUTHOOTMF	51 Neutral	₹30.30B	-8.40	―	―	-10.17%	-181.71%
SPANDANA	48 Neutral	₹22.27B	-1.67	―	―	-45.13%	-1646.01%

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.

Arman Financial Services Releases Q2 FY-26 Investor Call Transcript

Arman Financial Services Limited has released the transcript of its investor call for the second quarter of the fiscal year 2025-26. The call, which took place on November 14, 2025, was led by key management figures including Joint Managing Director Aalok Patel and Chief Financial Officer Vivek Modi. This release is part of the company’s compliance with SEBI regulations, ensuring transparency and communication with stakeholders.