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Earnings Call

Northern Arc Capital Earnings Call: Key Takeaways

Northern Arc delivered strong FY26 performance with PAT growing 33% YoY to ₹406 Cr, driven by a 59% shift toward direct-to-customer lending and improved NIMs of 9.4%.

Why this was an Alfa AlertNot a filter event. FY26 credit cost of 2.8% was exactly in line with prior guidance.
Highlights
Revenue growthTotal income grew 15% YoY in FY26 to ₹2,387 Cr.
MarginsNIM improved to 9.4% in FY26 from 9.1% in FY25.
Demand visibilityStrong growth in D2C lending AUM, up 39% YoY.
Management confidenceConfident in granular D2C book and technology-backed underwriting.

Growth

Lending AUM rose 22% YoY to ₹16,594 Cr. PAT (excluding NCI) grew 33% YoY in FY26.

Outlook

Credit cost guidance maintained at 2.8%; focusing on scaling MSME and Consumer Finance through Phygital and digital channels.

Risks

Potential MFI overleverage stress; Net NPA slightly increased to 0.6% from 0.4% QoQ.

Source

Earnings Call filed with NSE, NSE: NORTHARC. Summary written with AI assistance from the document.

Read the document ↗

Northern Arc Capital Ltd: key numbers

Share price
₹300.90
Market cap
₹4,869 Cr
Revenue (annual)
₹2,690 Cr
Net profit (annual)
₹406.0 Cr
P/E (TTM)
11.1×Sector 22.0×
Promoter holding
0.00%+0.00% QoQ
FII holding
8.64%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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