59 | Annual Report | 2025-2026 27.61% and a conservative Debt-to-Equity Ratio of <3x. Furthermore, our Liquidity Coverage Ratio (LCR) stood at a robust 116%, reflecting prudent liquidity management and enduring financial resilience. Strategic Fundraising and Debt Management Leveraging our superior portfolio quality and strong corporate governance, Arohan maintained a formidable liquidity position throughout FY 2026. The Company successfully raised INR 5564 Cr in debt through a diversified mix of term loans, securitization, and assignment transactions. The company’s robust performance significantly bolstered lender confidence, allowing Arohan to broaden its already strong lender base and secure new sanctions from esteemed institutions such as Punjab & Sind Bank Limited, CSB Bank Limited, Protium Finance Limited, Nabfins Limited, and Vivriti AMC Limited. Crucially, by strategically replacing high-cost borrowing facilities with lower-cost alternatives, Arohan achieved a notable reduction in its overall borrowing cost, lowering it from 11.52% to 10.59% during FY 2026. As of the yearend, the Company’s total outstanding borrowings stood at INR 5,904 Cr (excluding off-balance sheet borrowings of INR 270 Cr), anchored by our top lending partners: Axis Bank Limited, IDFC First Bank, HSBC Bank, and Standard Chartered Bank. Liquidity and Investment Strategy Arohan’s approach to liquidity management remains both dynamic and highly secure. Throughout the year, we maintained a strong monthly liquidity buffer of ~ INR 1000 Cr, strategically diversified across various instruments. By year-end, total usable liquidity stood at a healthy INR 923 Cr. including Unencumbered Cash and Cash Equivalent, Investment in Debt Mutual Funds and Undrawn Sanctions, but excluding INR 324 Cr in government securities. Further diversifying our investment strategy in FY 2026, Arohan initiated strategic investments in debt mutual funds. As of March 31, 2026, the total outstanding investment in debt mutual funds was INR 207 Cr of the year-end liquidity mix. To guarantee maximum financial flexibility, the Company additionally maintained undrawn sanctioned limits of INR 364 Cr. The graph below depicts our borrowing mix as of March 31, 2026 81% 5,026 12% 736 4% 250 3% 156 Term Loan Sub-Debt Sec. & Assign NCDs FY 2026 Audited Financial 2026 & 2025 Statement of Profit & Loss ( INR in Cr) Audited FY 2026 FY 2025 Revenue Revenue from operations 1,545 1,692 Other Income 7 4 Total Revenue 1,552 1,696 Expenses Finance costs 525 632 Impairment on financial instruments 304 398 Employee benefits expenses 397 389 Depreciation, amortisation and impairment 9 7 Other expenses 154 132 Total Expenses 1,389 1,558 Profit before tax 163 138 Total tax expenses 41 28 Profit after tax 122 110 Other Comprehensive Income -0.03 -7 Total comprehensive income 122 103
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