| 42 Annual Report | 2025-2026 Recovery Amount (in Cr.) 12.00 45.21 112.79 140.34 124.42 112.56 FY21 FY22 FY23 FY24 FY25 FY26 Recovery through Sandhi Scheme (in Cr.) 0.40 0.90 4.70 28.81 25.54 19.43 FY21 FY22 FY23 FY24 FY25 FY26 These initiatives strengthened customer trust, improved accessibility, and enabled a more seamless and responsible customer experience, supporting Arohan’s commitment to inclusive and sustainable growth. ENABLING PROGRESS THROUGH CUSTOMERCENTRIC DEBT RECOVERY In FY 2026, Arohan continued to reinforce its strategic and empathetic approach to managing overdue accounts through its Debt Receivable Department, focusing not just on recovery, but on providing stressed customers with the necessary support and guidance to help them repay, thereby providing them with the opportunity to rebuild their creditworthiness. The Debt Receivable Department takes a measured approach to curing overdue accounts, with the aim of maintaining our strong origination and underwriting standards while ensuring optimization and productivity, thereby minimising credit costs. With a structured and scalable framework - comprising 2 Divisional Receivable Managers (DRMs), 7 Deputy Divisional Receivable Managers (DDRMs), over 60 Cluster Receivable Managers (CRMs), a Central Strategy Team, and more than 850 dedicated Receivable Executives (REs) on the ground - Arohan has built a robust mechanism for customer engagement and recovery. This customer-focused approach led to the successful recovery of INR 112.56 Cr in FY 2026, including a significant INR 55 Cr from written-off accounts, demonstrating the effectiveness of combining operational strength with compassionate outreach. Many of these recoveries reflect instances where customers, with the right support, were able to resume repayments and work towards restoring their financial standing. This marks the fourth consecutive year since the department’s inception in FY 2023 that Arohan has surpassed INR 100 Cr in annual recoveries. The sustained recovery performance over the past four years indicates the increasing maturity in Arohan’s recovery architecture and consistently effective customer outreach across geographies. Customer Engagement and Recovery Strategies To achieve meaningful recovery outcomes while supporting customers in financial stress, Arohan has implemented a set of broad, customer-centric strategies. These initiatives are designed not only to drive recoveries but also to rebuild customer trust and creditworthiness through proactive engagement, education, and structured resolution mechanisms. Field Strategy: Personalised Outreach and Education a) Customer Household Visits and Promise to Pay (PTP): Arohan’s team of Receivable Executives (REs) plays a crucial role in directly engaging with customers through household visits. Their efforts focus on establishing rapport, educating customers about the importance of maintaining a strong credit history, and encouraging timely repayments. When immediate payment is not feasible, REs work with customers to secure Promise to Pay (PTP) commitments, ensuring clarity and mutual accountability. b) Data-Driven Engagement with Recovery Scorecards: To prioritise and personalise outreach, Arohan has developed customer level Recovery Scorecards. These are informed by each customer’s collection history, payment patterns, current delinquency status, and performance metrics—both with Arohan (on-us) and externally (off-us). These insights enable targeted, effective follow-ups tailored to individual circumstances. c) Sandhi Settlement Scheme: To maximize recoveries from written-off accounts, Arohan had launched the Sandhi Scheme in February 2021, and has been offering such customers a one-time settlement (OTS) opportunity on the basis of pre-defined settlement matrices. The total recovery through the Sandhi Settlement Scheme, since its inception, stood at INR 79.78 Cr as on March 31, 2026. Management Discussion & Analysis
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