Northern Arc Capital Limited — PPTs, 31-10-2025: Investor Presentation

Northern Arc's Lending AUM grew 19% YoY to ₹14,166 Cr for Q2FY26, with Direct to Customer (D2C) lending now comprising 54% of its AUM and serving over 2.2 million customers. H1FY26 placement volumes were ₹5,399 Cr.

Strategically, the company is focused on expanding its D2C segment, leveraging digital channels for consumer finance, and strengthening rural finance with secured products. The goal is to grow D2C to two-thirds of total AUM within three years. Technology platforms like NuScore and nPOS are driving efficient underwriting and loan processing.

Recent developments include adding 15 branches in H1FY26 to enhance D2C reach. All new rural finance disbursements since March 2025 are now covered under CGFMU.

For Q2FY26, Profit After Tax (PAT) stood at ₹92 Cr (-6% YoY). Return on Assets (RoA) was 2.6%, and Return on Equity (RoE) reached 10.1%. Net Non-Performing Assets (NPA) remained healthy at 0.56%, supported by a diversified portfolio. Networth increased 10% YoY to ₹3,663 Cr.

Management aims to boost fee income contribution by 30-40 basis points to overall RoA and targets an RoA of 3.7-4% and RoE of 16-18% in the next three years, emphasizing operational efficiency and robust collection infrastructure.