The global economy grew an estimated 3.4% 3.4% in 2025, held up by steady consumption in the United States, an investment cycle building around artificial intelligence, and the gradual easing of trade policy tensions over the second half of the year. That momentum broke in late February 2026 with the outbreak of war in the Middle East, which disrupted energy infrastructure and shipping through the Strait of Hormuz and left the near- term outlook materially more uncertain.
The conflict has worked through the wider economy along three channels: higher energy and energy- linked input costs, firmer consumer inflation expectations, and a flight to safe- haven assets, gold among them that has strengthened the US Dollar and widened risk premia across financial markets. On this footing the IMF expects global growth to slow to 3.1% 3.1% in 2026 before a modest recovery to 3.2% 3.2% in 2027, with headline inflation rising over the coming year and easing thereafter as the immediate commodity- price shock fades. The sharpest downgrades fall on commodity- importing economies, most acutely across the Middle East and North Africa, where higher energy bills and weaker external demand have compounded one another.
Constructed upon baseline assumptions, survey indicators and model forecasts, real GDP growth is projected at 6.9% 6.9% in FY2027. This reflects a gradual strengthening in economic momentum over the year. While the baseline outlook is supported by resilient domestic demand, the balance of risks remains tilted to the downside, primarily due to global economic uncertainty and commodity price volatility. However, higher crude oil prices than that estimated for baseline scenario real GDP growth is estimated at 6.7% 6.7% .
NBFCs are key pillars of Indias financial intermediation ecosystem. They complement scheduled commercial banks (SCBs) by extending credit to customer segments and geographies where conventional channels are less penetrated. Their specialised underwriting, product innovation and last- mile delivery capabilities - supported by increasing digital origination and servicing - have facilitated greater access to finance for micro and small enterprises, self- employed borrowers, affordable housing customers and microfinance- linked households, thereby advancing financial inclusion and supporting broad- based economic activity. In line with this expanding role, NBFC credit as a proportion of GDP has increased steadily over the past decade from 8.9% 8.9% in FY2015 to 14.6% 14.6% in FY2025.
During the year the Reserve Bank of India has undertaken a significant rationalisation of its regulatory framework, including the consolidation of over 9,000 regulatory instructions into 238 Master Directions out of which 35 Master Directions were issued for Non- Banking Finance Companies (NBFCs). The RBI further completed a similar consolidation exercise covering all supervisory instructions, reinforcing consistency and ease of compliance across regulated entities. This simplification enhances regulatory clarity, reduces interpretational complexity and supports more efficient engagement with the regulator. We view these measures as strengthening the operating environment for well- governed NBFCs and as being aligned with our disciplined approach to compliance, governance and risk management.
The outlook for the Indian economy and NBFC sector remains positive, supported by steady economic growth, increasing credit demand and greater financial inclusion. The NBFC sector is expected to benefit from rising demand across MSME, retail and underserved segments, along with increasing digitalisation.
The Company remains focused on prudent growth, strong risk management, regulatory compliance and sustainable value creation while leveraging emerging opportunities in the NBFC sector.
The NBFC sector continued to play an important role in Indias financial ecosystem during FY 2025- 26, particularly in serving underserved and under banked segments. Credit demand remained resilient, supported by growth in retail, MSME and other emerging segments, while increasing digitalisation enhanced operational efficiency and customer reach.
The sector continued to operate under a robust regulatory framework, with the RBI emphasising governance, risk management, capital adequacy and responsible lending under the Scale- Based Regulation framework. Despite challenges relating to funding costs, asset quality and regulatory requirements, the sector remains well positioned for sustainable growth.
Going forward, opportunities in MSME finance, retail lending, vehicle finance and other underserved segments are expected to support growth. The Company remains focused on prudent lending, effective risk management, regulatory compliance and sustainable growth.
The regulatory environment for NBFCs remained focused on strengthening governance, risk management, capital adequacy and responsible lending under the RBIs Scale- Based Regulation framework. NBFCs continued to focus on diversified funding sources and effective liquidity management amid evolving market conditions.
The sector also witnessed increasing competition from banks and fintech players, driving greater emphasis on technology, customer service and operational efficiency. The RBIs continued focus on prudent underwriting, particularly in higher- risk and unsecured lending segments, has further reinforced the need for robust credit assessment, portfolio monitoring and prudent financial management. These developments are expected to support a more resilient and sustainable NBFC sector.
Arnold Holdings Limited is a public limited company incorporated in the year 1981 listed in Bombay Stock Exchange. It is a non- deposit taking; Base Layer NBFC, registered with the RBI vide Registration No. B- 13.02130 Ever since its incorporation the company engaged in investment in shares and activity of non- banking finance company.
Our Company is primarily focused in providing inter corporate loans, personal loans, loans against shares & securities, Loans against properties, trade financing, bills discounting, trading in shares & securities. Being an, NBFC our Company has positioned itself between the organized banking sector and local money lenders, offering the customers competitive, flexible and timely lending services.
Our Company offers financial services to commercial, industrial and financial clients with a one stop financial solution:
Trade Finance & Bill Discounting Working capital loans Loan against property Margin funding and loan against securities Capital market Corporate finance Mortgage and loans Infrastructure finance
During the fiscal Year 2026, the operational income of the Company stood at Rs. 16689.35 Lacs as compared to previous fiscal Year of Rs. 19972.57 Lacs. The company has continued its lending activities and advances portfolio of the Company has been Rs. 9145.48 Lacs and the interest income of the Company have been stood at Rs. 1032.44 Lacs. This fiscal Year Companys profits have been 442.06 Lacs as compared to Rs. 532.65 Lacs of fiscal Year 2025.
Income from operation stood at Rs. 16689.35 Lacs for fiscal Year 2026. Profit before Taxes of fiscal Year 2026 was Rs. 650.55 Lacs. Profit after Taxes of fiscal Year 2026 was Rs. 442.06 Lacs. Earnings per share for fiscal Year 2026 were Rs. 1.86 per share. Net Worth of company stood at Rs. 6195.98 Lacs as on March 31, 2026.
The company is operating as Non- Banking Financial Company and so does not have segment wise performance. The performances are reflected in the balance sheet.
Diversified Lending Portfolio: The Company serves a wide range of customers across retail, small business, and MSME segments, reducing concentration risk and enabling stable revenue streams.
Strong Regulatory Compliance: Arnold Holdings maintains full compliance with RBIs Scale- Based Regulatory Framework and Companies Act norms, ensuring operational credibility and governance.
Robust Risk Management Framework: A sound credit appraisal process, loan recovery mechanisms, and internal control systems enable effective risk mitigation.
Lean Operational Structure: The Company operates with a lean team and streamlined processes, which helps in maintaining low operational costs and higher profitability margins.
Digital Enablement Initiatives: Progress toward digitizing loan origination, credit evaluation, and customer servicing has increased efficiency and reduced turnaround time.
Branding: Our Company is not a well- established brand among large NBFC players who have access to larger financial resources.
Accessibility: We do not have branches so we are unable to explore the business opportunities in other areas.
Regulatory restrictions: continuously evolving government regulations may impact operations.
Uncertainty: Uncertain economic and political environment.
Rising Credit Demand from MSMEs and Underserved Segments: The formalization of small businesses and increased financial inclusion initiatives by the government present growth opportunities for NBFCs.
Partnerships with Fintech and Digital Lending Platforms: Collaborations with fintechs can improve reach, credit assessment, and customer onboarding, enabling faster and more agile loan processing.
Expansion into Niche Lending Areas: The Company can explore unsecured loans, supply chain finance, gold loans, or small- ticket consumer finance as high- margin lending verticals.
Digital Platform: Company has own Digital app TRADOFINA which provides instant credit loans to personal and small business needs.
Economic Downturn: If the economic downturn is prolonged it can reduce the financing need of people due to shrinking business opportunities.
Private Banks: Private Banks are also working on the similar business model as the NBFCs do, thereby giving a very strong competitions to the NBFCs.
Regulatory Changes: Any potential tightening of NBFC regulations by the Regulator could significantly impact operational dynamics and increase compliance- related expenditures.
Expansion of existing activities: Our Company intends to expand its financial services by enhancing its focus on margin funding, loan against shares and securities, loan against properties and corporate loan, bill discounting and working capital loan.
Differentiated Services: In the growing economy, the corporate clients will be requiring funds for further expansions. Our Company would be providing all diversified service portfolio under one umbrella to cater most of the customer needs and demands.
Brand recognition: We are in such a business where we are facing lot of competition. Our Company is not a wellestablished brand among large NBFC players. We will be making the necessary arrangements for our brand reorganization.
Conducting regular reviews of business plans and effective liquidity management.
On boarding maximum number of customers through digital platform.
Arnold Holdings Ltd places the highest value on its human capital, acknowledging that the sustained success of the organization is deeply rooted in the competencies, capabilities, and contributions of its people. The Companys core philosophy emphasizes creating a safe, healthy, and fulfilling workplace, where employee well- being and productivity are mutually reinforced.
In line with this belief, Arnold Holdings actively nurtures a culture defined by integrity, honesty, and continuous learning. The Company is deeply committed to equality and upholds a strict zero- tolerance policy against harassment. It strives to provide not just employment, but meaningful careers that foster trust, engagement, and long- term growth. Employees are encouraged to grow within a respectful, secure, and transparent environment that values both performance and character.
The Human Resources function plays an essential role in upholding the Companys values and ensuring that every individual within the organization operates in a culture of openness, inclusivity, and accountability. Through proactive engagement and robust policy implementation, HR serves as a strategic partner in building a workplace that balances operational excellence with employee empowerment.
Arnold Holdings HR policies are thoughtfully designed to prepare employees for a fast- changing and competitive business environment. The Company promotes a performance- oriented culture, one that recognizes and rewards Individual effort, while also fostering collective achievement. Employees are provided with the tools, training, and opportunities necessary to grow in alignment with the Companys strategic goals. This approach not only enhances internal capabilities but also strengthens the Companys market position in a highly dynamic financial services landscape. As Arnold Holdings looks ahead, its human resource priorities remain focused on attracting, developing, and retaining high- potential talent. Equal opportunity, holistic employee wellness, and a collaborative work environment continue to be the foundation of its HR philosophy. Every process, from recruitment to leadership development, is shaped by the Companys intrinsic values and a commitment to building an inclusive, future- ready workforce.
Human capital remains an important enabler of the Companys growth. With 47 employees, Arnold Holdings Ltd. continues to promote a culture of accountability, performance and innovation while aligning employee capabilities with its strategic objectives.
At Arnold Holdings, risk management is not merely a compliance function - it is a core strategic priority, integral to the Companys commitment to safeguarding the interests of its customers, employees, shareholders, and the organization at large. Anchored in the principles of ethical governance and long- term sustainability, the Company has developed a comprehensive and dynamic risk management framework aligned with global best practices and tailored to the evolving landscape of the financial services sector.
The Companys risk management architecture is supported by a structured control mechanism and governed by a deeply embedded culture of risk awareness. This culture extends across all levels of the organization and is continually reinforced through detailed operational guidelines, well- articulated policies, and robust internal controls. This disciplined approach enables the Company to anticipate, identify, assess, and manage a wide spectrum of risks.
The Company monitors and addresses various risk domains including credit risk, market risk, legal and regulatory risk, operational risk, liquidity and interest rate risks, as well as cybersecurity, IT, strategic, and broader economic risks. In light of the increasingly complex risk environment, Arnold Holdings adopts a proactive and preventive approach, conducting in- depth risk evaluations and implementing comprehensive mitigation measures to ensure business continuity and operational resilience.
The Board maintain stringent oversight, ensuring that risk management remains an enterprise- wide responsibility, deeply integrated into the Companys decision- making processes.
By continuously enhancing its risk control systems and governance structures, Arnold Holdings is well- positioned to navigate challenges while maintaining financial stability and stakeholder confidence. This commitment to prudent risk management not only supports regulatory compliance but also fosters sustainable and resilient growth, reinforcing the Companys long- standing reputation as a responsible and forward- looking financial institution.
Arnold Holdings has instituted a comprehensive internal control system that forms the backbone of its operational integrity and governance. Built on a well- structured organizational framework, this system is reinforced through documented policies and an unequivocal authority matrix. It aims to enhance operational efficiency, ensure compliance with internal and external standards, and protect the Companys assets from risk or mismanagement.
The Company recognizes that a robust internal control system is essential for the seamless execution of its day- to- day operations. In response, Arnold Holdings has developed an expansive control mechanism that integrates business process controls, financial reporting accuracy, fraud prevention, and regulatory compliance, all of which align with global best practices and industry benchmarks.
Internal controls are embedded across all functions, ensuring consistency, reliability, and efficiency in operations. This structure is uniformly applied across the organization and serves to protect corporate assets, prevent unauthorized transactions, and uphold the highest standards of governance. Controls are designed to guarantee that every transaction adheres to established protocols and is backed by accurate documentation and verification mechanisms.
The Audit Committee of the Board plays a crucial oversight role by systematically reviewing internal audit reports and ensuring that the financial control systems are operating effectively. The scope and coverage of internal audits are determined based on detailed risk assessments, materiality, and process impact evaluations, ensuring that areas of highest risk are prioritized.
Arnold Holdings Ltd Audit Committee routinely reviews internal audit reports. The Company maintains, in all material respects, adequate internal financial control over financial reporting, which operates effectively. Internal audits are conducted to assess the adequacy of internal control systems and compliance with policies and procedures. The areas of internal audit are planned based on inherent risk assessment, risk scores and other factors such as probability, impact, Significance and the strength of the control environment. The adequacy and operating effectiveness of internal controls are assessed and tested. Additionally, Arnold Holdings Ltd has formulated a risk- based internal audit policy as part of its oversight function. The objective of risk- based internal audit reviews is to identify key activities and controls in business Processes, review the effectiveness of these processes and controls. It also involves assessing the operating effectiveness of internal controls and providing recommendations for business processes and internal control enhancements.
| Particulars | F. Y. 2025-26 | F. Y. 2024-25 | % variance | Reason for variance of more than 25% |
| Current Ratio | 3.62 | 5.89 | -38.47% | Current Ratio is a liquidity metric that measures a companys ability to cover its short-term obligations with its current assets. Current assets are 76.94 crores and Current Liabilities of Rs 21.23 crores. A current ratio of 3.62 is a healthy ratio. Increase in Trade Payables by 78% as compared to last year has resulted in decline in Current Ratio. |
| Debt Equity Ratio | 1.32 | 1.40 | -5.31% | - |
| Debt Service Coverage Ratio | 0.17 | 0.15 | 10.10% | - |
| Return On Equity Ratio | 7.08 | 9.25 | -23.48% | - |
| Trade Receivables Turnover Ratio | 367.27 | 443.57 | -0.17 | - |
| Inventory Turnover Ratio | - | - | - | NA |
| Operating Profit Margin | 3.90 | 3.09 | 26.29% | Due to cost optimization there is an improvement in Operating Profits |
| Net Capital Turnover Ratio | 2.71 | 3.51 | -0.23 | - |
| Net Profit Ratio | 2.61 | 2.64 | -0.97 | - |
| Return On Capital Employed | 9.18 | 8.08 | 13.59% | - |
| Return On Net Worth | 6.83 | 8.84 | -22.68% | - |
| Interest Service Coverage Ratio | 1.89 | 2.12 | -10.68% | - |
(Figures in Lakhs)
(In view of nature of business and various components of financial statements, other Ratios as mentioned in Schedule III are not applicable to the Company. Auditor has already mentioned the reasons for variance more than 25% 25% in audit report.)
Statements made in this Management Discussion and Analysis Report may contain certain forward- looking statements based on various assumptions about the Companys present and future business strategies and the environment in which it operates. Actual results may differ substantially or materially from those expressed or implied due to risk and Uncertainties. These risks and uncertainties include the national and global effects of economic conditions, political conditions, volatility in interest rates, changes in regulations and policies impacting Companys businesses and other related factors. The information contained herein is as referred to. The Company does not undertake any obligation to update these statements. The Company has obtained the data and information referred here from sources believed to be reliable or from its internal estimates, the accuracy or completeness of which cannot be guaranteed.
| Place: Mumbai | For the Board of Directors | ||
| Date: 07.08.2026 | Arnold Holdings Limited | ||
| Sd/- | Sd/- | ||
| Murari Mallawat | Munni Devi Jain | ||
| Whole Time Director | Chairperson | ||
| DIN: 08809840 | DIN: 08194500 |
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