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

Northern Arc's Q2FY26 saw Lending AUM jump 19% YoY to ₹14,166 Cr, with Gross Transaction Volume at ₹8,787 Cr. Profit After Tax was ₹92 Cr, while RoA improved to 2.6% and RoE reached 10.1%. Net Interest Income grew 11% YoY to ₹322 Cr. The Direct-to-Customer (D2C) segment now forms 54% of AUM, showing strong growth and leading to a significantly improved Net NPA of 0.56%.

The company is strategically focused on further boosting D2C lending to over two-thirds of AUM in three years, supported by digital initiatives and new partnerships. They also aim to enhance fee income from their Credit Solutions. Recent developments include adding 15 MSME branches in H1FY26 and covering all new rural finance disbursements since March 2025 under the CGFMU.

Looking ahead, management targets an RoA of 3.7-4% and RoE of 16-18% over the next three years. They anticipate improved interest yields from their evolving AUM mix and expect to maintain Net NPA between 0.5-0.7% through a diversified portfolio and robust risk management.