Northern Arc Capital Limited has informed the Exchange about Transcript
NORTHARC · price
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Northern Arc Capital reported its highest ever quarterly profit of INR133 crore in Q4FY26, taking full-year PAT to INR406 crore (up 33% YoY). AUM grew 22% YoY to INR16,594 crore, with direct-to-customer (D2C) business now comprising 59% of the mix. Net interest margin expanded to 9.4%, credit cost improved to 2.8% for the full year, and ROE reached 14% in Q4. Management guided for AUM growth of 22-25%, ROA of 3%+ and ROE of 15-17% within 8-10 quarters, with NIM expansion expected as D2C mix reaches 65%. The CFO highlighted debt-equity ratio improvement from 3.9x to 3.1x and strong capital adequacy at 22.6%. Collection efficiencies improved across all segments with Stage-2 assets declining to 1.5%.
Strong execution with clear multi-year targets signals confidence in sustained profitability. The improvement in asset quality, margin expansion and leverage reduction positions the stock favorably for continued re-rating.