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Earnings Call Transcript

Northern Arc Capital Earnings Call Transcript: Key Takeaways

Northern Arc delivered robust performance with 41% PAT growth, driven by direct-to-customer expansion crossing a 10,000 crore AUM milestone. The shift toward higher-yielding retail segments is successfully offsetting tight liquidity environments.

Guidance and delivery
Management target Revenue 23.0% FY27
Highlights
Revenue growthTotal AUM grew 26% YoY; fee income up 28%.
MarginsNIM expanded to 9.3%; targeting 10% by year-end.
Demand visibilityStrong retail demand in MSME and consumer finance sectors.
Management confidenceHigh; emphasizing disciplined execution and diversified retail strategy.

Growth

AUM grew 26% YoY to 16,855 crore; NIMs expanded by 44 bps to 9.3%.

Outlook

Targeting 3% ROA and 10% NIMs by end of FY27; guiding credit costs at 2.6-2.7%.

Risks

Potential stress in microfinance and unsecured business loans; impact of El Nino on rural demand.

Last quarter's promises, checked

Delivered

  • Guided 2.7% to 2.8% credit cost → delivered 2.8% (= BEAT)
  • Guided 15% risk-adjusted yield in consumer finance → delivered 15% (= BEAT)
  • Guided 59% D2C AUM mix → delivered 59% (= BEAT)

Partly delivered

  • Guided 3% ROA → delivered 2.8% (= PARTIAL)
  • Guided 15% to 18% ROE in 7-8 quarters → On track (= PARTIAL)
Source

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

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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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