NORTHERN ARC CAPITAL LTD

Operates as a diversified non-banking financial company built around a credit platform that lends to Indian consumers, microfinance borrowers and MSMEs, and distributes loans originated by 373+ partner financiers. Direct-to-customer lending is the central piece — it crossed the Rs 10,000 cr mark in Q1 FY27 and is now 64% of the Rs 16,855 cr lending AUM, broken into consumer finance (Rs 5,000+ cr AUM), MSME finance (Rs 3,761 cr) and microfinance (Rs 1,200 cr, 94% covered under CGFMU). A separate credit solutions business places partner-originated loans onto the company's balance sheet, with 90% of these partners rated A and above and 95% carrying capital adequacy above 20%. Beyond lending, the company runs an investment management arm (NAIM) with two newly SEBI-approved credit funds, an Altifi retail bond platform that crossed 1 lakh subscribers, and a small investment advisory line. Revenue in FY26 came almost entirely from financing activity (96.1% of segment revenue at Rs 2,634.30 cr), with investment management, investment advisory and 'others' making up the remaining sliver. The largest cost lines are employee expense at 12.3% of revenue and other operating expense at 6.9%; depreciation and capex are minimal at under 1% each. NIM in Q1 FY27 was 9.3% against an 8.46% cost of funds, and asset quality was tight with GNPA at 1%, NNPA at 0.5% and collection efficiency at 99.6%.