Northern Arc Capital Limited has informed the Exchange about Presentation
NORTHARC · price
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Northern Arc Capital reported strong FY26 results with PAT growing 33% YoY to INR 406 Cr, driven by 21% AUM growth reaching INR 16,594 Cr. The company achieved significant improvement in asset quality with credit cost declining 42 bps to 2.8% and Stage II assets at just 1.5%. Direct-to-Customer lending now comprises 59% of total AUM (up from 52%), with D2C AUM at INR 9,792 Cr and 29.6 lakh direct customers. Net Interest Margin improved to 9.4% from 9.1% YoY. Q4FY26 was particularly strong with PAT of INR 133 Cr, up 251% YoY, and RoE of 14.0%. The company operates across MSME, Consumer Finance, and Rural Finance segments with 432 branches and 368 originator partners.
Strong execution with improving profitability and asset quality demonstrates successful pivot to retail lending. The expanding D2C mix and improving NIM signal sustainable growth trajectory, while low credit costs indicate robust risk management.