Arman Financial Q2 FY27 Results (NSE: ARMANFIN)
Signal: Earnings grew
The read
The NBFC recovery is continuing: consolidated PAT reached ₹5,147.95 lakh, up 544.0% YoY, for a second consecutive profitable quarter after the Q1FY27 ₹4,517.15 lakh PAT; however, the main catalyst was impairment falling to ₹2,584.99 lakh from ₹3,826.62 lakh, while H1FY27 operating cash flow remained negative at ₹47,640.22 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹234.64 Cr | +47.4% | +16.3% |
| Net profit | ₹51.48 Cr | +544.0% | |
| EPS | ₹48.94 | +542.3% | |
| EBIT margin | 0 |
P&L walk
Consolidated total income rose 47.4% YoY to ₹23,464.19 lakh, while impairment losses fell 32.5% to ₹2,584.99 lakh and PAT rose 544.0% to ₹5,147.95 lakh; the recovery remains primarily credit-cost-led rather than a disclosed margin expansion.
Segments
There is no reportable segment split, but consolidated PAT of ₹5,147.95 lakh was nearly three times standalone PAT of ₹1,737.18 lakh, showing that subsidiaries drove most of the group-level recovery.
Key positives
- Consolidated total income rose 47.4% YoY to ₹23,464.19 lakh, with NII up 50.0% to ₹13,302.97 lakh.
- Impairment losses declined 32.5% YoY to ₹2,584.99 lakh, reducing impairment intensity to 11.0% of total income from 24.0% a year earlier.
- Basic EPS increased 542.3% YoY to ₹48.94 and broadly tracked the 544.0% PAT increase.
- Consolidated net Stage III loan assets were 0.92% of gross loan assets, versus gross Stage III at 2.73%.
Key concerns
- H1FY27 consolidated operating cash flow was negative ₹47,640.22 lakh despite H1 PAT of ₹9,665.09 lakh, reflecting heavy cash absorption in loans and other operating assets.
- Quarterly impairment losses increased 32.6% QoQ to ₹2,584.99 lakh after ₹1,950.03 lakh in Q1FY27, so the credit-cost improvement is not yet sequentially consistent.
- Consolidated debt-equity remained high at 2.07x, even though net Stage III assets were 0.92% of gross loan assets.
- Standalone PAT of ₹1,737.18 lakh was materially below consolidated PAT of ₹5,147.95 lakh, leaving group earnings dependent on subsidiaries.
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