Investor Presentation for the Year ended March 31, 2026
NORTHARC · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Northern Arc Capital reported strong FY26 results with PAT of INR 406 crore (up 33% YoY) and AUM of INR 16,594 crore (up 21% YoY). The NBFC focused on underserved households and businesses saw NIM expand to 9.4% and RoE improve to 11.1%. Credit cost declined to 2.8% in line with guidance, while Stage II assets reduced to 1.5%. Direct-to-customer (D2C) lending now comprises 59% of AUM (up from 52%), with D2C AUM at INR 9,792 crore serving nearly 30 lakh customers. The company operates across MSME, Consumer Finance, and Rural Finance segments with 432 branches, maintaining GNPA below 1.2% and demonstrating consistent profitability growth across multiple business cycles including demonetization, IL&FS crisis, and COVID pandemic.
Strong execution with margin expansion, improving asset quality, and successful D2C transition signals a healthy trajectory. The company appears well-positioned for sustained growth with its granular retail book and diversified funding sources. The stock (NSE: NORTHARC, BSE: 544260) with AA- rating from ICRA and India Ratings reflects creditworthiness.