MFI sector continues signs of stabilisation in Q3 FY26: Arohan Financial

Arohan posts 87% jump in Q3 profit as asset quality improves

The microfinance sector continued to show signs of stabilisation in Q3 FY26, said Manoj Nambiar, managing director (MD), Arohan Financial Services. The asset quality of the company improved, with gross non-performing assets (GNPA) at 1.69 per cent and net NPA at 0.39 per cent. The portfolio at risk (PAR) was at favourable levels.

 

“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 per cent and PAR levels trending favourably,” Nambiar said.

 

 

The non-banking financial company–microfinance institution (NBFC-MFI) posted a net profit of Rs 36.48 crore for the October–December period of FY26 (Q3 FY26), up 87 per cent from Rs 19.53 crore in Q2 FY26. The company’s assets under management (AUM) rose to Rs 6,308 crore as of December 31, 2025. It served a stable borrower base of close to 20 lakh people across the country. It had a liquidity position of over Rs 700 crore and reported a capital adequacy ratio of 31.2 per cent.

 

The company is not listed on the exchanges.