Namra Finance Limited Bonds

Namra Finance Overview

Namra Finance is the microfinance subsidiary of the Arman Group. It provides small-ticket loans to women in rural and semi-urban areas for income-generating activities, including livestock, dairy and small retail businesses. Its lending model includes traditional JLG loans and individual business loans.

Entity and business: Namra is an RBI-registered, non-deposit-taking NBFC-MFI. It operates primarily in microfinance and follows a JLG-based lending model, alongside an individual business loan vertical.

Parent and promoter: Namra is a wholly owned subsidiary of Arman Financial Services Limited (AFSL), a listed NBFC incorporated in 1992. AFSL was promoted by Jayendra Patel, who passed away on 25 August 2026. His son, Aalok Jayendra Patel, is Namra's Chairman and Managing Director.

Corporate history: Namra received its NBFC-MFI licence from the RBI on 14 February 2013 and began undertaking the group's microfinance lending business from May 2013. AFSL continues to operate in other lending segments, including MSME, two-wheeler, loan-against-property and rooftop solar financing.

Scale: Namra's standalone AUM stood at ₹1,998.56 crore as of March 2026. The Arman Group reported a consolidated AUM of ₹2,728.43 crore. As of June 2026, the group operated 556 branches across 11 states, including 424 Namra branches.

Performance (FY26): Namra reported total income of ₹432.87 crore and PAT of ₹12.88 crore. Its GNPA stood at 3.40%, while NNPA was approximately 0.98%. CRAR was 41.01% as of March 2026.

Note: The group branch count and Namra's standalone branch count are different measures. The AUM of ₹2,728.43 crore is consolidated group AUM, not Namra's standalone AUM.

History of Namra Finance

Arman Financial Services was established in 1992 and initially focused on asset-backed lending, including two-wheeler finance. The group began microfinance lending before setting up Namra as a separate entity to house this business.

Namra received its NBFC-MFI licence on 14 February 2013 and began undertaking the group's new microfinance lending from May 2013. The parent later expanded into MSME lending in 2017, while Namra continued to focus on microfinance.

Namra's profitability was hit by the broader microfinance-sector stress in FY25. Its PAT fell from ₹138.33 crore in FY24 to ₹7.85 crore in FY25, as elevated credit costs and write-offs weighed on earnings. In FY26, PAT improved to ₹12.88 crore, while standalone AUM rose to ₹1,998.56 crore from ₹1,685.78 crore in FY25.

The group has since introduced a Branch Credit Manager (BCM) model to separate credit appraisal from recovery functions. By June 2026, the model had been implemented in 330 of Namra's 424 branches. The group has also expanded its CGFMU credit guarantee coverage.

Namra Finance Board of Directors and Key Management

Aalok Jayendra Patel is Namra's Chairman and Managing Director. He was redesignated from Joint Managing Director to Chairman and Managing Director in February 2026. Jayendra Patel, the group's founder and Namra's former Whole-time Director, passed away on 25 August 2026.

Namra's FY26 annual report listed five directors as of 31 March 2026. These included Aalok Patel, Jayendra Patel, Ritaben Patel, Pinakin Shah and Yash Kaushik Shah. The annual report also recorded the appointment of Yash Kaushik Shah as an Independent Director in February 2026.

Namra Finance Key management:

• Aalok Jayendra Patel: Chairman and Managing Director
• Chirag Umeshbhai Vora: Chief Financial Officer
• Urvishkumar Mansukhbhai Karathiya: Company Secretary and Compliance Officer

Editor note: The FY26 annual report records the board composition as of 31 March 2026 and confirms Jayendra Patel's subsequent demise. Verify the current post-demise board composition and DINs against the latest MCA filings before publishing a complete director table.

Namra Finance Shareholding Pattern

Namra Finance is a wholly owned subsidiary of Arman Financial Services Limited. AFSL held all 5.286 crore fully paid-up equity shares of Namra as of 31 March 2026.

Namra Finance Financials

Namra's profitability fell sharply in FY25 as the microfinance sector experienced higher delinquencies and credit costs. PAT declined from ₹138.33 crore in FY24 to ₹7.85 crore in FY25. In FY26, it recovered to ₹12.88 crore.

Standalone AUM also recovered, increasing 18.55% year-on-year to ₹1,998.56 crore in FY26. CRAR remained strong at 41.01%, although it declined from 48.41% in FY25.

Note: These are Namra's standalone figures. The ₹2,728.43 crore AUM and ₹645.86 crore total income reported elsewhere in the FY26 annual report are consolidated Arman Group figures, not Namra's standalone figures. FY24 CRAR has been left blank rather than carried over from an unverified figure.

Namra Finance Key Strengths

1. Comfortable Capitalisation: Capital of 70 crs was infused in Namra in FY’25, as of Mar’26 Namra’s net worth is INR 650 Crs with comfortable leverage of 1.73x and CRAR of 41.01%, well above the RBI's 15% minimum requirement.
2. Strong Market Presence:  AFSL is a Listed company on both NSE and BSE, with a share price of Rs. 1,621 as of 8 April 2026, with a strong market capitalisation of ­INR 1,700 crore.
3. Experienced Management Team:  Namra is led by Jayendrabhai B. Patel (Founder & MD with 28+ years of experience in financial services & corporate leadership) and Aalok J. Patel (Executive Director, CPA (USA), with prior experience at KPMG and John Deere), supported by team with a cumulative experienced of ~150 years

Namra Finance Key Risks

1. MFI industry risk - Significant portion of the portfolio comprises unsecured loans to borrowers with moderate credit profiles.
2. Regulatory risk - The company is also exposed to regulatory risks associated with adverse changes in regulations guiding such NBFCs, and event-based risks associated with microfinancing.

Namra Finance Credit Rating

Namra's long-term rating is ACUITE A- with a Positive outlook. On 30 September 2026, Acuité reaffirmed the A- rating and revised the outlook from Stable to Positive, citing improving profitability and asset quality at the group level.

CARE Ratings has also assigned CARE A- to relevant NCD facilities, with the outlook revised to Stable in its October 2026 rating communication. Earlier, CARE had maintained a Negative outlook amid stress in the group's microfinance and SME portfolios.

Note: The CARE October 2026 communication covers relevant NCD facilities of the parent and its wholly owned subsidiary. Confirm the individual Namra instrument allocation and amounts from the exchange filing or rating annexure before attributing a specific facility quantum to Namra.

Namra Finance NCDs: Selected Instrument Details

Acuité's September 2026 rating annexure lists the following rated NCDs:

The five listed issues total ₹485 crore. These are issue/rated amounts, not necessarily the amount currently outstanding. A separate ₹40 crore NCD, ISIN INE229U07103, matured on 25 May 2026 and its rating was withdrawn following redemption.