MANAGING DIRECTOR’S Address MANOJKUMAR N NAMBIAR Managing Director It’s my privilege to connect with all of you once again through the FY 2026 Annual Report of Arohan Financial Services Limited. The year 2025-26 has been a very eventful one for us at Arohan – we completed 20 years of operation as a microfinance lender, ensured an increasing coverage of the portfolio under Credit Guarantee, while filing a DRHP for a possible listing, and achieving our highest ever portfolio outstanding with one of the best GNPA & NNPAs in the sector as of March 2026 ending. Arohan as of March 2026: Particulars As of March 2026 Portfolio Outstanding INR 7,426 Cr Borrowers ~ 2 million Branches 1,069 Districts 318 Operational States 16 Revenue INR 1,552 Cr TCI INR 122 Cr Net Worth INR 2,158 CAR 27.61% GNPA 1.13% NNPA 0.21% Rating ICRA A (Stable Outlook) CARE A- (Stable Outlook) Grading MF1 Following a difficult year for the microfinance sector in FY 2024-25, FY 2025-26 also began on a challenging note. Elevated slippages from regular accounts into delinquency, the intensive effort required to manage the 1-90 DPD buckets, and the focus on recoveries in the 90+ DPD portfolio left limited room for fresh business sourcing Greetings, 5 | Annual Report | 2025-2026
RkJQdWJsaXNoZXIy NTE5NzY=