NSE: NORTHARC · BSE: 544260
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%. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Financing activity (96%), Others (2%), Investment management services (2%), Investment advisory services (0%). Asset-light, diversified NBFC running a credit platform across direct lending, partner loan distribution, and fund management
Exhibit 1: Financial summary, FY25–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY25 | FY26 |
|---|---|---|
| Revenue | 2,342 | 2,690 |
| EBITDA (ex other income) | 1,220 | 1,448 |
| margin % | 52.1 | 53.8 |
| Owners' profit | 305 | 406 |
| EPS, as reported (₹) | 20.08 | 24.99 |
| ROE % · ROCE % | 8.8 · — | 10.3 · — |
| Debt / equity (x) | — | — |
| Cash from operations | (1,047) | (1,532) |
| Capex | (18) | (15) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 585 | 576 | 603 | 605 | 627 | 721 | 742 | 780 |
| Profit before tax | 134 | 94 | 36 | 105 | 124 | 134 | 182 | 153 |
| Net profit | 96 | 73 | 38 | 78 | 91 | 102 | 133 | 114 |
| EPS (₹) | 7.58 | 4.69 | 2.34 | 5.02 | 5.68 | 6.24 | 8.21 | 7.08 |
Exhibit 3: Segment revenue, FY26
| Segment | Revenue, ₹ crore | Share % |
|---|---|---|
| Financing activity | 2,640 | 96.1 |
| Investment advisory services | 0 | 0.0 |
| Investment management services | 42 | 1.5 |
| Others | 65 | 2.4 |
| Total, before eliminations | 2,747 | 100.0 |
Exhibit 4: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| BAJAJ FINANCE LIMITED | 5,67,346 | 27.9 | 4.85 | — | 16.5 | — | 25.2 | 70.7 |
| SHRIRAM FINANCE LIMITED | 1,93,785 | 14.5 | 2.94 | — | 15.2 | — | 22.5 | 74.7 |
| TATA CAPITAL LIMITED | 1,28,620 | 23.5 | 2.73 | — | 10.4 | — | — | 75.8 |
| CHOLAMANDALAM IN & FIN CO | 1,25,298 | 21.7 | 4.11 | — | 17.2 | — | 26.5 | 71.2 |
| MUTHOOT FINANCE LIMITED | 96,653 | 8.5 | 2.43 | — | 26.7 | — | 22.0 | 84.0 |
| SBI CARDS & PAY SER LTD | 50,250 | 22.1 | 3.20 | — | 13.8 | — | — | 33.1 |
| SUNDARAM FINANCE LTD | 42,997 | 19.2 | 2.89 | — | 13.8 | — | — | 78.4 |
| PIRAMAL FINANCE LIMITED | 42,166 | 24.9 | 1.50 | — | 5.3 | — | — | 63.4 |
Exhibit 5: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 9.1 | 18.5 | 50 of 200 | 75% |
| P/B | 1.0 | 1.1 | 125 of 253 | 51% |
| ROE | 10.3 | 3.1 | 54 of 257 | 79% |
| EBITDA margin | 53.4 | 48.6 | 119 of 249 | 52% |
| Revenue growth | 28.8 | 12.6 | 88 of 231 | 62% |
| Profit growth | 45.8 | 7.8 | 89 of 251 | 65% |
| Market cap | 3984 | 33 | 24 of 268 | 91% |
Exhibit 6: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 27 Oct 2026 · Board meeting set for November 3 to approve Q2 and half-year results | results | low | — | — |
| 5 Oct 2026 · Northern Arc Capital files routine Reg 74(5) demat compliance certificate for Q2 FY27 | compliance | minimal | — | — |
| 30 Sept 2026 · Allotment of 3,000 equity shares under ESOP Plan | capital market events | low | — | — |
| 28 Sept 2026 · Trading window closes Oct 1 ahead of Q2/H1 FY27 results | compliance | minimal | — | — |
| 18 Sept 2026 · Investor meeting with Bharat Connect on Sept 29, 2026 | board shareholder meetings | low | — | — |
| 16 Sept 2026 · Northern Arc Capital allots 1.44 lakh shares under ESOP Plan | capital market events | low | — | — |
| 2 Sept 2026 · Eight Roads fully exits Northern Arc Capital, sells 5.88% stake | ownership changes | medium | — | — |
| 31 Aug 2026 · Allotment of 12,500 equity shares under ESOP Plan 2016 | capital market events | low | — | — |
| 28 Aug 2026 · Record date set for Commercial Paper redemption | credit debt | medium | — | — |
| 24 Aug 2026 · Northern Arc Capital to meet investors at Elara India Dialogue on Sep 2, 2026 | board shareholder meetings | low | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.