Transcript for the earnings call held on May 08, 2026
NORTHARC · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Northern Arc Capital reported its highest-ever quarterly profit of INR133 crores in Q4FY26, taking full-year PAT to INR406 crores, up 33% YoY. AUM grew 22% YoY to INR16,594 crores, led by direct-to-consumer (D2C) business which now contributes 59% of total AUM at INR9,800 crores. Net interest margins expanded to 9.4%, while credit cost improved to 2.8% for the full year from 3.2% in FY25. The company maintained its conservative approach with Net NPA below 1% and strong collection efficiencies (99.4-99.6% X-bucket) across segments. Management targets AUM growth of 22-25% for FY27, expects to reach 3%+ ROA in 8-10 quarters, and targets ROE of 15-17% in about 2-2.5 years. Credit cost guidance for FY27 is maintained at 2.7-2.8%.
The strong quarterly performance with improving margins, disciplined credit costs, and clear multi-year targets signals operational resilience. The shift toward higher-yielding D2C business (now 59% of AUM) should continue expanding NIMs, making Northern Arc well-positioned for sustained profitability growth over the next 2-3 years.