amit@unlistedkraft.in
+91-9599071664
+91-9599071664
Arohan Financial Services Unlisted Shares
DRHP Status : Not Filed
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Fundamentals About Arohan Financial Services
Downloads & Investor Documents
All documents are provided for informational purposes and are subject to regulatory disclosures.
Key Financials of Arohan Financial Services
| P&L Statement | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Interest Earned | 858 | 930.96 | 1380 | 1581 |
| Other Income | 62 | 160.02 | 254 | 114 |
| Interest Expended | 402 | 468.64 | 592 | 632 |
| Operating Expenses | 294 | 334.98 | 451 | 527 |
| Provisions and contingencies | 136 | 192.64 | 179 | 389 |
| PAT | 61 | 70.71 | 314 | 110 |
| EPS | 5.08 | 4.7 | 19.95 | 6.92 |
| Gross NPA | 4.5 | 2.8 | 1.64 | 2.77 |
| Net NPA | 1.32 | 0.21 | 0 | 0.47 |
| Financial Ratios | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Advances | 3710 | 4782.21 | 6616 | 5705 |
| Book Value | 85.25 | 88.98 | 121.62 | 127.43 |
| P / B | 2.17 | 2.08 | 1.52 | 2.04 |
| ROE (%) | 5.96 | 5.28 | 16.4 | 5.43 |
| Assets | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Fixed Assets | 4 | 5.3 | 11 | 13 |
| Cash and Balances | 1308 | 556.56 | 1268 | 673 |
| Investments | 0 | 78.77 | 90 | 363 |
| Advances | 3710 | 4782.21 | 6616 | 5705 |
| Other Assets | 207 | 595.3 | 130 | 132 |
| Total Assets | 5229 | 6018.14 | 8115 | 6886 |
| Liabilities | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Share Capital | 120 | 150.38 | 157.41 | 158.9 |
| FV | 10 | 10 | 10 | 10 |
| Reserves | 903 | 1187.63 | 1757 | 1866 |
| Borrowings | 3694 | 3809.36 | 5617 | 4304 |
| Deposits | 0 | 0 | 0 | 0 |
| Other Liabilities | 512 | 870.77 | 583.59 | 557.1 |
| Total Liabilities | 5229 | 6018.14 | 8115 | 6886 |
About Company
The following table shows a 10-point analysis of Arohan Financial Services Limited. We will discuss each point in detail after this table.
| Parameter | Key Numbers | Insights |
|---|---|---|
| Business Overview | FY25 AUM ~₹4,250–4,400 cr Revenue/Interest Earned ~₹850–870 cr PAT ~₹118–125 cr PAT margin ~13.5–14.5% |
Leading NBFC-MFI focused on women-centric JLG lending for livelihood & income-generation. Strong presence in East & North-East India (West Bengal, Assam, Bihar, Odisha, Jharkhand). Post-acquisition by Bandhan Bank in 2022, operates as a focused MFI arm with digital disbursals, high repayment discipline, serving ~25 lakh clients via ~800+ branches. |
| Industry & Market Position | Major MFI in East & North-East India High portfolio quality & low PAR |
Competitive versus peers (Spandana, Ujjivan, Bandhan MFI arm). Edge from regional depth, low delinquency (~98–99% repayment) & parent backing. Resilient via secured portfolio and women-focused lending; exposed to regulatory caps, rural economic slowdowns & over-indebtedness. |
| Revenue Growth Trend | FY23–FY25 CAGR ~25–30%+ FY25 YoY growth ~25–28% |
Strong expansion from branch growth, client addition, and repeat lending. Post-acquisition integration boosted scale. Outpaces peers despite regulatory headwinds; momentum from underserved market penetration. |
| Profitability & Margins | NIM ~13–14% ROA ~3.2–3.5% ROE ~20–22% PAT margin ~13.5–14.5% |
Healthy profitability from high yields, low credit costs & operating leverage. Asset quality excellent (GNPA <1%). Earnings quality high due to disciplined collections & secured JLG model; strong compared to many MFIs. |
| Cash Flow Quality | OCF strong (collections & repayments) Dividend policy: payouts noted |
Excellent cash generation supports growth & debt servicing. High repayment rates, low delinquency, and advance collections maintain quality. |
| Balance Sheet Strength | Net worth strong CRAR >20% Debt/Equity ~3–4x (typical MFI) |
Well-capitalized with borrowing diversification. Downside protected by high-quality portfolio & parent Bandhan Bank support; minimal major risk. |
| Valuation Comfort | Unlisted price ~₹165–190 (Feb 2026) P/E ~18–22x (EPS ~₹8–9 est.) Market cap ~₹2,000–2,300 cr |
Reasonable multiple for high-quality MFI with strong growth & asset quality. Justified by ROE, low PAR & sector tailwinds; attractive compared to listed MFIs. |
| Management & Governance | Bandhan Bank oversight Professional team Strong compliance & ratings (BBB+/Stable) |
Proven execution in scaling & maintaining portfolio quality. Transparent disclosures; solid governance; benefits from regulatory alignment & parent standards. |
| Growth Triggers & Catalysts | Branch & client expansion Secured lending focus Rural credit demand No confirmed IPO/DRHP plans |
Organic upside from underserved markets, repeat borrowers & digital lending. Incremental gains from efficiency & new geographies; no direct listing catalyst (subsidiary of listed parent). |
| Liquidity & Exit Visibility | OTC liquidity only No confirmed IPO plans |
Moderate unlisted trading; capital somewhat locked. Exit via OTC or strategic/parent interest; real liquidity risk but stable MFI asset backed by parent. |
Arohan Financial Services Limited is a leading NBFC-MFI operating primarily in financially under-penetrated low-income states of India. The company focuses on providing income-generating microfinance loans and other financial inclusion products to customers with limited or no access to formal banking services.
Founded in 2006, Arohan Financial has built a strong presence in eastern India and has gradually expanded its footprint across multiple states through a structured and risk-controlled lending model.
Business Model & Focus Areas
The following explains the core business operations of Arohan Financial Services Limited.
Arohan Financial follows a well-established NBFC-MFI lending framework, supported by:
- Robust risk management systems
- Structured loan approval processes
- Strong recovery and collection mechanisms
The company primarily offers microfinance loans, with a smaller but growing presence in MSME lending. Notably, 97% of microfinance borrowers are women, reflecting the company’s focus on women-led financial inclusion.
Market Position & Scale
The following highlights Arohan Financial Services Limited’s industry standing:
- Largest NBFC-MFI in Eastern India
- 5th largest NBFC-MFI in India by Gross Loan Portfolio (as of September 30, 2020)
- Among the top five NBFC-MFIs, Arohan reported the second-highest loan portfolio CAGR of 68% over the last three years
Geographical Presence & Branch Network
The following outlines the operational footprint of Arohan Financial Services Limited. As of March 2023:
- Microfinance business:
- 829 branches
- Operations across 11 states
- MSME lending business:
- 10 branches
- Presence in 8 states
This diversified presence helps reduce regional concentration risk while supporting portfolio growth.
Loan Portfolio & Growth
The following summarises key portfolio metrics.
- Gross Loan Portfolio (GLP): ₹5,357 crore (as of March 2023)
- Strong portfolio expansion driven by branch additions and deepening rural penetration
- Women borrowers constitute the dominant share of the loan book
Financial Performance Snapshot
The following is a concise financial overview based on available data.
- FY23 Highlights:
- Revenue: ₹1,090 crore
- Profit After Tax (PAT): ₹71 crore
- Gross NPA: 2.80%
- Balance Sheet Metrics (as on 31.03.2023):
- Book Value: ₹90 per share
- EPS: ₹6
Promoters & Shareholding
The following outlines the promoter and investor base of Arohan Financial Services Limited.
Promoters
- Aavishkaar Venture Management Services Private Limited (AVMS)
- Intellectual Capital Advisory Services Private Limited (I-Cap)
Institutional Investors
- Tano India Private Equity Fund II
- Maj Invest Financial Inclusion Fund II K/S
- Michael & Susan Dell Foundation
- TR Capital III Mauritius
- ASK Financial Holding Private Limited
- Kiran Vyapar Limited
IPO Update
The following highlights recent corporate developments.
Arohan Financial Services Limited has filed its DRHP for a proposed IPO, signalling the company’s intent to access public markets. Further details on issue size, pricing, and timelines are awaited.
Challenges & Risks
The following outlines key risks associated with the business:
- Exposure to economically vulnerable borrower segments
- Sensitivity to regulatory changes in the microfinance sector
- Asset quality pressures during economic disruptions
- Dependence on consistent collection efficiency for profitability
Quick Summary
This section provides a brief snapshot of Arohan Financial Services Limited:
- Established NBFC-MFI with a strong eastern India presence
- Rapid portfolio growth with a diversified branch network
- High focus on women borrowers and financial inclusion
- Backed by reputed venture and institutional investors
- IPO filing indicates next phase of growth and transparency
Shareholding Pattern of Arohan Financial Services
| Name | Holding |
|---|---|
| Teachers Insurance And Annuity Association Of America | 12.09% |
| Aavishkaar Goodwell India Microfinance Development Company II Limited | 11.07% |
| Tano India Private Equity Fund II | 10.50% |
| Intellectual Capital Advisory Services Private Limited | 10.37% |
| Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V. (FMO | 9.90% |
| Maj Invest Financial Inclusion Fund II | 9.69% |
| others | 35.78% |
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Frequently Asked Questions
Arohan Financial Services Limited provides microfinance and MSME loans to low-income customers, primarily women borrowers, in under-banked regions of India.
Yes, Arohan Financial Services Limited operates as an RBI-registered NBFC-MFI.
As of March 2023, Arohan Financial Services Limited reported a Gross Loan Portfolio of approximately ₹5,357 crore.
The promoters are Aavishkaar Venture Management Services Private Limited and Intellectual Capital Advisory Services Private Limited.
Yes, Arohan Financial Services Limited has recently filed its DRHP for a proposed IPO.
+91-9599071664
amit@unlistedkraft.in