NORTHARC
Northern Arc Capital share price & financials
- Price
- ₹295.05
- Market cap
- ₹4.5k Cr
- Sector
- Financial Services
- Calls analysed
- 6
Northern Arc Capital Limited Q1 FY27
What went well
- Profit after tax (PAT) of INR 114 crores, a strong 41% growth on a Y-o-Y basis, underscoring the resilience of our diversified business model.
- Assets Under Management (AUM) grew by about 26% on a Y-o-Y basis to INR 16,855 crores, outpacing industry growth.
- Direct lending portfolio has now crossed over INR 10,000 crores, a significant milestone reflecting strength of customer-centric approach and disciplined execution.
What to watch
- Global economy continues to navigate heightened uncertainty, particularly in light of the ongoing West Asia crisis, leading to volatility in energy prices, supply chain disruptions, and increased risk awareness.
- Concerns around El Nino, its potential impact on monsoon, though rural economic activity remains stable.
What Northern Arc Capital Limited does
Northern Arc Capital is a diversified NBFC that finances the credit needs of underserved households and small businesses across India through two channels: direct-to-customer (D2C) lending to MSME, consumer-finance and rural-finance borrowers via its own branch network and digital partners, and credit solutions that connect capital providers (banks, funds, offshore/institutional investors) to a network of originator-partner NBFCs and fintechs through securitisation/structured placements, managed credit funds, and balance-sheet (intermediate retail) lending. It earns net interest income on its own D2C loan book and fee income from placements, fund management and technology-platform monetisation. Underwriting and portfolio monitoring across both channels are run on in-house risk-analytics tools built on a large historical loan dataset accumulated over the company's 15+ years in the sector.
Segments
- MSME (D2C)
- Consumer Finance (D2C)
- Rural Finance (D2C)
- Intermediate Retail / Loan-to-Originate (Credit Solutions)
- Fund Management (Credit Solutions)
- Placements (Credit Solutions)
- Branch network
- 432 branches
- Direct-to-customer borrower base
- ~29.6 lakh (29,55,966) customers
- National footprint
- 28 states, 7 union territories, 680 districts
- Originator partners (credit solutions network)
- 368 partners
- Digital lending partners (nPOS)
- 57 partners
- Institutional investor/placement partners
- 1,500+ investors
Guidance record · Q1 FY27
what the last two calls moved 24 tracked 4 delivered 4 missed 16 open- Balance Sheet Growth delivered said Q1 FY25 Promised: faster than the industry Q1 FY27: Assets Under Management (AUM) grew by about 26% on a Y-o-Y basis to INR 16,855 crores, outpacing industry growth.
- Overall Growth Rate (AUM CAGR) went quiet said Q1 FY25 Promised: similar kind of growth rate (30%+ CAGR) Q1 FY27: The original 30%+ CAGR target was not mentioned. Current YoY AUM growth is 26%, and the active guidance remains 22-25% for FY27, confirming the original promise is abandoned.
- ROA revised down said Q1 FY26 Promised: 3.7% to 4% over next 3 years Q1 FY27: Management guided for an ROA 'closer to 3% in this year' (FY27), confirming the original 3.7-4.0% target is abandoned.
All 24 tracked — every revision, and every one management stopped mentioning.
Open the guidance ledgerQuarterly results
Q1 FY27: revenue up 29.9%, net profit up 17.3% against the same quarter last year.
| Line item | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 573 | 560 | 590 | 591 | 606 +6% | 712 +27% | 731 +24% | 768 +30% |
| EBITDA | 341 | 309 | 236 | 323 | 333 −2% | — | — | — |
| Net profit | 112 | 102 | 47 | 104 | 95 −15% | 92 −10% | 139 +196% | 122 +17% |
How to read this
₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.
Performance +21.9% 1Y
1Y: ₹250.33 on 10 Sept 2025 → ₹305.1. High ₹325.3 (10 Jul 2026), low ₹206.85 (30 Mar 2026).
How the price took the results
close before → close after
- Q1 FY27
- +0.2%
- 27 Jul
- Q4 FY26
- +1.0%
- 8 May
- Q3 FY26
- +3.2%
- 30 Jan
- Q2 FY26
- +0.6%
- 31 Oct
The move from the last close before each results date to the first close after it — the market's first read on the quarter, not the quarter itself.
Financials, as filed
Revenue grew 19.7% a year over 2 years, FY24 to FY26.
| Year ending | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | ₹1.8k Cr | ₹2.3k Cr | ₹2.6k Cr |
| Operating profit | ₹1.2k Cr | ₹1.2k Cr | — |
| Operating margin | 63.7% | 53.3% | — |
| Interest | ₹726 Cr | ₹823 Cr | ₹886 Cr |
| Depreciation | ₹15 Cr | ₹15 Cr | ₹16 Cr |
| Net profit | ₹312 Cr | ₹342 Cr | ₹430 Cr |
| Net margin | 16.9% | 15.0% | 16.3% |
| Cash from operations | ₹-2.1k Cr | ₹-1.1k Cr | ₹-1.5k Cr |
| Free cash flow | ₹-2.2k Cr | ₹-1.1k Cr | ₹-1.5k Cr |
| ROE | 14.0% | 12.0% | 12.0% |
How to read this
From the company's own filings. Margins are computed from the filed sums; a year with an incomplete quarter is left blank rather than estimated.
Balance sheet
| Year ending | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|
| Equity capital | ₹88 Cr | ₹89 Cr | ₹89 Cr | ₹89 Cr | ₹162 Cr | ₹162 Cr |
| Reserves | ₹1.4k Cr | ₹1.5k Cr | ₹1.8k Cr | ₹2.1k Cr | ₹3.5k Cr | ₹3.7k Cr |
| Borrowings | ₹4.0k Cr | ₹6.1k Cr | ₹7.1k Cr | ₹9.1k Cr | ₹10.3k Cr | ₹12.2k Cr |
| Other liabilities | ₹85 Cr | ₹142 Cr | ₹243 Cr | ₹321 Cr | ₹368 Cr | ₹561 Cr |
| Total liabilities | ₹5.6k Cr | ₹7.8k Cr | ₹9.2k Cr | ₹11.6k Cr | ₹14.4k Cr | ₹16.7k Cr |
| Fixed assets | ₹21 Cr | ₹19 Cr | ₹43 Cr | ₹48 Cr | ₹81 Cr | ₹57 Cr |
| Capital work in progress | ₹1 Cr | ₹0 Cr | ₹1 Cr | ₹2 Cr | ₹0 Cr | ₹13 Cr |
| Investments | ₹1.3k Cr | ₹1.6k Cr | ₹1.7k Cr | ₹1.7k Cr | ₹2.4k Cr | ₹2.9k Cr |
| Other assets | ₹4.3k Cr | ₹6.2k Cr | ₹7.5k Cr | ₹9.9k Cr | ₹11.9k Cr | ₹13.7k Cr |
| Total assets | ₹5.6k Cr | ₹7.8k Cr | ₹9.2k Cr | ₹11.6k Cr | ₹14.4k Cr | ₹16.7k Cr |
How to read this
As filed each year. A line the company does not report — deposits for a non-lender, for instance — is left out rather than shown as a row of dashes.
All earnings calls (6)
Read the Q1 FY27 call →Learn to analyse Northern Arc Capital Limited
Guides on how to read this kind of business and the numbers that matter.