Arohan Financial Services recorded a net profit of Rs 36.48 crore during the quarter. On a quarter-on-quarter basis (QoQ), the net profit expanded from Rs 19.53 crore, representing a growth of 87 percent. The growth was supported by strong asset quality and improvement in collection efficiencies. During the quarter, Arohan continued to pursue calibrated credit expansion with its assets under management (AUM) reaching Rs 6,308 crore, supported by a stable borrower base of close to 20 lakhs across the country. Asset quality remained resilient with gross NPA of 1.69% and net NPA of 0.39%, among the lowest in the NBFC-MFI sector, reflecting prudent risk management practices and strong collection efficiencies.
Commenting on the performance, Mr Manoj Nambiar, Managing Director, Arohan Financial Services said, “During the third quarter, the microfinance sector continued to show signs of stabilisation. At Arohan, our consistent focus on disciplined lending, prudent customer selection, and strong on-ground monitoring has delivered tangible results, as reflected in steady improvements across key operating metrics. AUM as of December 31, 2025 was Rs 6,308 crore. Asset quality indicators also strengthened, with GNPA at 1.69% and PAR levels trending favourably.
“We continue to maintain a strong liquidity position of over 700 crore and a comfortable capital adequacy ratio of 31.2 %, providing adequate headroom to pursue calibrated growth. As we move forward, we remain confident about our growth trajectory, supported by resilient asset quality and a stronger balance sheet. Arohan remains committed to strengthening portfolio quality, improving operational efficiencies, and driving sustainable growth.”
Arohan has outlined a vision to serve 5 million households, or 20 million lives, by 2030, which would position the company as amongst the top three NBFC-MFI in India.
