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Northern Arc Capital Q2 FY27 results: net profit up 42.3% to ₹129.48 crore, revenue up 38.5%
Northern Arc Capital Limited reported consolidated revenue of ₹868.71 crore and net profit of ₹129.48 crore for Q2 FY27, up 38.5% and 42.3% from a year earlier. Profit attributable to owners rose 41.0% to ₹129.32 crore, while basic EPS increased to ₹8.00 from ₹5.68.
Key points
- Consolidated revenue was ₹868.71 crore in Q2 FY27, up ₹241.26 crore or 38.5% from Q2 FY26.
- Net profit was ₹129.48 crore, up ₹38.50 crore or 42.3% year on year and ₹15.38 crore or 13.5% from Q1 FY27.
- Profit attributable to owners was ₹129.32 crore, up 41.0% year on year, while basic EPS rose to ₹8.00 from ₹5.68.
- For H1 FY27, revenue was ₹1,648.48 crore and net profit was ₹243.59 crore, up 33.7% and 43.9% from H1 FY26.
- The board approved Ashish Mehrotra’s reappointment as MD and CEO for five years from 1 April 2027, subject to shareholder approval.
How did Northern Arc Capital perform in Q2 FY27?
Northern Arc Capital reported consolidated revenue of ₹868.71 crore for Q2 FY27, up 38.5% from ₹627.45 crore in Q2 FY26 and 11.4% from ₹779.77 crore in Q1 FY27. Total income was ₹873.81 crore, up ₹245.11 crore or 39.0% year on year. Profit before tax rose to ₹169.14 crore from ₹123.81 crore a year earlier and ₹152.60 crore in the previous quarter.
Net profit was ₹129.48 crore, compared with ₹90.98 crore in Q2 FY26 and ₹114.10 crore in Q1 FY27. Profit attributable to owners was ₹129.32 crore, while basic EPS rose to ₹8.00 from ₹5.68 a year earlier and ₹7.08 in the previous quarter. Net profit margin was 14.9%, up 0.4 percentage points year on year and 0.3 percentage points sequentially. EBITDA and EBITDA margin were not reported.
On the standalone basis, revenue was ₹858.26 crore and net profit was ₹133.98 crore, with revenue growth of 41.6% and profit before tax of ₹94.78 crore. The standalone figures were reported alongside the consolidated results for the quarter and half year ended 30 September 2026.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 868.71 | 779.77 | 627.45 | +38.5% | +11.4% |
| Other income | 5.10 | 3.05 | 1.25 | +308.0% | +67.2% |
| Total expenses | 704.67 | 630.23 | 504.88 | +39.6% | +11.8% |
| Profit before tax | 169.14 | 152.60 | 123.81 | +36.6% | +10.8% |
| Tax | 43.88 | 38.84 | 29.99 | +46.3% | +13.0% |
| Net profit | 129.48 | 114.10 | 90.98 | +42.3% | +13.5% |
| EPS (₹) | 8.00 | 7.08 | 5.68 | +40.8% | +13.0% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Northern Arc Capital's costs and profit?
Total expenses increased by ₹199.79 crore or 39.6% year on year to ₹704.67 crore. Employee cost rose ₹19.93 crore or 23.6% to ₹104.34 crore, finance costs increased ₹72.20 crore or 34.7% to ₹280.41 crore, and other expenses were higher by ₹21.47 crore or 50.5% at ₹63.98 crore. Depreciation fell by ₹0.63 crore or 12.7% to ₹4.34 crore. There was no exceptional item.
Other income increased by ₹3.85 crore or 308.0% to ₹5.10 crore. Profit before tax rose ₹45.33 crore or 36.6% to ₹169.14 crore, while tax expense increased by ₹13.89 crore or 46.3% to ₹43.88 crore. Net profit consequently increased by ₹38.50 crore or 42.3% to ₹129.48 crore. The filings and presentation did not provide a further explanation for the movements in the cost lines.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Employee cost | 104.34 | 84.41 | +19.93 | +23.6% |
| Finance costs | 280.41 | 208.21 | +72.20 | +34.7% |
| Depreciation | 4.34 | 4.97 | −0.63 | −12.7% |
| Other expenses | 63.98 | 42.51 | +21.47 | +50.5% |
| Total expenses | 704.67 | 504.88 | +199.79 | +39.6% |
| Other income | 5.10 | 1.25 | +3.85 | +308.0% |
| Tax | 43.88 | 29.99 | +13.89 | +46.3% |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
In H1 FY27, consolidated revenue was ₹1,648.48 crore, up ₹415.60 crore or 33.7% from ₹1,232.88 crore in H1 FY26. Total income rose 34.0% to ₹1,656.63 crore, while profit before tax increased by ₹93.29 crore or 40.8% to ₹321.74 crore.
Net profit for the first half was ₹243.59 crore, up ₹74.37 crore or 43.9% from ₹169.22 crore in H1 FY26. Basic EPS increased from ₹10.70 to ₹15.07, a rise of ₹4.37 or 40.8%. The same-day investor presentation reported lending AUM of ₹19,003 crore for Q2 FY27.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 1,648 | 1,233 | +33.7% |
| Profit before tax | 321.74 | 228.45 | +40.8% |
| Net profit | 243.59 | 169.22 | +43.9% |
| EPS (₹) | 15.07 | 10.70 | +40.8% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
Total assets increased to ₹19,162.91 crore at 30 September 2026 from ₹16,744.60 crore at 31 March 2026. Total equity rose to ₹4,220.52 crore from ₹3,901.01 crore, while cash and cash equivalents fell to ₹139.48 crore from ₹230.52 crore. The available balance-sheet figures did not include borrowings.
For H1 FY27, operating cash flow was negative ₹1,872.98 crore, compared with negative ₹137.72 crore in H1 FY26. Investing cash flow was negative ₹108.55 crore against negative ₹335.06 crore, while financing cash flow was positive ₹1,890.48 crore against positive ₹459.50 crore. Capital expenditure was ₹6.08 crore, compared with ₹8.31 crore a year earlier.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 19,163 | 16,745 |
| Total equity | 4,221 | 3,901 |
| Cash and equivalents | 139.48 | 230.52 |
| Inventories | 0 | 0 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | −1,873 | −137.72 |
| Cash from investing | −108.55 | −335.06 |
| Cash from financing | 1,890 | 459.50 |
| Capital expenditure | 6.08 | 8.31 |
Source: Company's results filing (XBRL).
How has Northern Arc Capital done over the last 8 quarters?
Revenue increased in each of the last six quarters on a year-on-year basis. It rose from ₹576.08 crore in Q3 FY25 to ₹868.71 crore in Q2 FY27, reaching its highest level in the latest quarter, while the earlier low in the reported series was ₹576.08 crore.
Net profit moved from ₹38.38 crore in Q4 FY25 to ₹129.48 crore in Q2 FY27, with the latest quarter below the ₹132.65 crore recorded in Q4 FY26. Profit rose year on year in each of the last four quarters. EBITDA margin was not reported for the quarterly trend, so its peak, trough and current direction cannot be stated from the available figures.
Which businesses drove the quarter?
Financing activity remained the principal segment, reporting revenue of ₹858.26 crore in Q2 FY27, up 40.0% from ₹613.18 crore in Q2 FY26. Segment EBIT rose to ₹456.35 crore from ₹357.24 crore, and the reported EBIT margin was 53.2%.
Investment advisory services reported revenue of ₹0.04 crore, down 19.0% from ₹0.05 crore, and EBIT of ₹0.06 crore against ₹0.05 crore. Investment management services recorded revenue of ₹8.57 crore, down 42.8% from ₹14.98 crore, and EBIT of negative ₹9.83 crore against positive ₹1.17 crore. Others reported revenue of ₹31.41 crore, up 97.0% from ₹15.95 crore, and EBIT of negative ₹2.12 crore against negative ₹27.68 crore.
| Segment | Revenue | Revenue YoY | EBIT | EBIT margin |
|---|---|---|---|---|
| Financing activity | 858.26 | +40.0% | 456.35 | 53.2% |
| Investment advisory services | 0.04 | −19.0% | 0.06 | 133.3% |
| Investment management services | 8.57 | −42.8% | −9.83 | -114.7% |
| Others | 31.41 | +97.0% | −2.12 | -6.8% |
Source: Company's results filing (XBRL segment data).
What else did the company announce?
On 3 November 2026, the board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with limited review reports and the required disclosures. The Audit Committee had reviewed and recommended the results before the board meeting. The filing also included a security cover certificate and a statement on the utilisation of issue proceeds.
The board approved the reappointment of Ashish Mehrotra as Managing Director and Chief Executive Officer for five consecutive years from 1 April 2027, subject to shareholder approval. The nomination and remuneration committee had recommended the appointment. The same-day filings did not announce a dividend or an equity raise, and the trading window for designated persons remained closed until 5 November 2026.
What did Northern Arc Capital's management say?
Management maintained FY27 AUM growth guidance at 23–25%, while Ashish Mehrotra said the company was endeavouring to achieve upside above 25% while retaining the existing range. Credit-cost guidance was maintained at 2.6–2.8%, and the direct-to-customer AUM mix was expected to increase to about 70% from 66% by FY27-end. Management expected return on assets to be around 3% by FY27-end.
How did Northern Arc Capital shares react?
The results were released after market hours. From the price when the filing appeared, the stock was up 0.7% after 5 minutes, 0.5% after 15 minutes and 1.9% after 30 minutes. On the reaction day, it closed 6.3% above the previous close of ₹260.90, compared with a 0.2% median move for the other NBFC stocks and a 2.2% rise in the Nifty Microcap 250.
By the next day's close, the stock was up 7.5% from its pre-results close. Its cumulative move exceeded the NBFC industry median by 6.1 percentage points on the reaction day and 6.0 percentage points by the next day's close. Earlier results-day moves included 8.8% on 8 May 2026, negative 3.7% on 27 July 2026 and negative 10.7% on 30 January 2026.
| After the filing | Stock | Non Banking Financial Company (NBFC) median |
|---|---|---|
| 5 minutes | +0.7% | |
| 15 minutes | +0.5% | |
| 30 minutes | +1.9% | |
| Reaction day | +6.3% | +0.2% |
| Next day | +7.5% | +1.4% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 27 July 2026 | −3.7% |
| 8 May 2026 | +8.8% |
| 30 January 2026 | −10.7% |
| 31 October 2025 | +4.4% |
| 29 July 2025 | −3.4% |
| 19 May 2025 | −3.8% |
| 14 February 2025 | −1.6% |
| 28 October 2024 | +5.5% |
Source: MarketPing price-reaction measurement.
How did other Non Banking Financial Company (NBFC) companies do?
A total of 93 other NBFC companies filed for the quarter, with a median revenue growth of 22.7%. Of these, 63 companies grew revenue more slowly than Northern Arc Capital and 30 grew faster. Among the 106 peers for which profit was compared, 71 reported higher profit.
| Northern Arc Capital revenue growth (YoY) | +38.5% |
|---|---|
| Median of 93 other Non Banking Financial Company (NBFC) companies | +22.7% |
| Companies with slower revenue growth than Northern Arc Capital | 63 of 93 |
| Companies with faster revenue growth than Northern Arc Capital | 30 of 93 |
| Companies whose net profit rose | 71 of 106 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Northern Arc Capital's revenue in Q2 FY27?
Revenue from operations was ₹868.71 crore, up 38.5% from ₹627.45 crore in Q2 FY26 (consolidated).
Did Northern Arc Capital make a profit in Q2 FY27?
Yes. Net profit was ₹129.48 crore, against a net profit of ₹90.98 crore in Q2 FY26.
What was Northern Arc Capital's EPS in Q2 FY27?
Basic earnings per share were ₹8.00, against ₹5.68 in Q2 FY26.
How did Northern Arc Capital shares react to the Q2 FY27 results?
On the reaction day the stock moved +6.3% from the previous close; the median Non Banking Financial Company (NBFC) stock moved +0.2%.
When did Northern Arc Capital announce its Q2 FY27 results?
On 3 November 2026, in a filing to the BSE.
Sources
- Board Meeting Intimation for Consideration And Approval Of Unaudited Financial Results (Standalone And Consolidated) Of The Company For The Second Quarter And Half Year Ended September 30, 2026 (BSE, 27 October 2026) · PDF
- Board Meeting Outcome for Outcome Of Board Meeting Held On 03 November 2026 (BSE, 3 November 2026) · PDF
- Unaudited Financial Results (Standalone And Consolidated) For The Second Quarter And Half Year Ended September 30, 2026 (BSE, 3 November 2026) · PDF
- The earnings call (4 November 2026)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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