Arman Financial’s profit rises as revenue growth outpaces costs
Operating margin improved to 60.94%, but a higher tax rate and 13.83% growth in interest expense moderated net profit growth.
Filed 04 Nov 2026, 13:23 IST · Arman Financial Services Ltd (ARMANFIN)
Key takeaways
- Consolidated net profit rose 13.97% QoQ to Rs 51.48 cr as revenue growth outpaced expense growth.
- Operating margin widened 0.54 percentage points to 60.94% QoQ, with revenue growing 16.29% against expenses at 14.72%.
- The tax rate rose 4.58 percentage points to 25.56%, limiting the conversion of a 20.97% rise in pre-tax profit into net profit growth.
Price around the results
Revenue growth lifted operating profit
Arman Financial reported consolidated revenue growth of 16.29% QoQ to Rs 234.64 cr, while expenses grew 14.72% to Rs 91.66 cr. The faster revenue growth lifted operating profit by 17.32% to Rs 142.99 cr and widened operating margin by 0.54 percentage points to 60.94%. Pre-tax profit rose 20.97%, but net profit growth was slower at 13.97% as interest expense increased 13.83% and tax expense rose 47.33%.
Margin stayed above the Financial Services peer median
The company’s 60.94% operating margin was 9.28 percentage points above the 51.66% median for the 93 Financial Services peers that had reported the same quarter. Profit quality was not supported by other income, which contributed 0% of pre-tax profit. The tax rate increased to 25.56% from 20.98% in Q1FY27, creating a larger drag below operating profit.
Sequential momentum improved, with limited trend visibility
The quarter-on-quarter direction was positive: revenue rose from Rs 201.78 cr in Q1FY27 to Rs 234.64 cr, while operating margin moved from 60.40% to 60.94%. EPS increased 13.92% QoQ to Rs 48.94, broadly tracking the 13.97% rise in net profit. The reported comparison is sequential rather than year-on-year, so the quarter mainly shows current operating momentum.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹235 cr | ₹202 cr | +16.29% |
| Other income | ₹0 cr | ₹0 cr | -100.00% |
| Expenses | ₹92 cr | ₹80 cr | +14.72% |
| Operating profit | ₹143 cr | ₹122 cr | +17.32% |
| Operating margin (%) | 60.94% | 60.40% | — |
| Interest | ₹73 cr | ₹64 cr | +13.83% |
| Depreciation | ₹1 cr | ₹0 cr | +40.43% |
| Profit before tax | ₹69 cr | ₹57 cr | +20.97% |
| Tax | ₹18 cr | ₹12 cr | +47.33% |
| Net profit | ₹51 cr | ₹45 cr | +13.97% |
| EPS (₹) | ₹48.94 | ₹42.96 | +13.92% |
Operating margin of 60.94% compares with a Financial Services sector median of 51.66% across 93 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 60.94%.
- Whether interest expense growth stays below the 13.83% recorded this quarter.
- Whether the tax rate moves back below 25.56%.