Northern Arc Capital Limited — PPTs, 30-01-2026: Investor Presentation

Here's a concise summary for retail investors:

**1. Business Performance:**

Northern Arc reported strong Q3FY26 financial results. Lending AUM grew 18% YoY to 15,121 Cr, with a significant 56% mix from direct customers. Gross Transaction Volume reached 10,401 Cr, up 27% YoY. Profit After Tax (PAT) rose 51% YoY to 101 Cr, demonstrating robust profitability across business cycles.

**2. Growth Drivers or Strategy:**

Key growth is driven by expanding Direct-to-Customer (D2C) lending, particularly in MSME and Consumer Finance, alongside robust Credit Solutions like placements and credit funds. Technology platforms like nPOS and NuScore enhance underwriting and operational efficiency, leveraging data for granular portfolio management.

**3. Recent Developments:**

The company added 17 branches for MSME lending in 9MFY26 and expanded its digital partner network. It has also undertaken a conscious calibration in its MFI portfolio, with new disbursements now covered under CGFMU for better risk management.

**4. Key Financial Metrics:**

For Q3FY26, PAT was 101 Cr (+51% YoY), Pre-Provision Operating Profit (PPoP) hit 265 Cr (+51% YoY), and Net Interest Margin (NIM) stood at 9.9% (+180 bps YoY). Net NPA was well-controlled at 0.69%, supported by a diversified and granular portfolio.

**5. Management Commentary / Outlook:**

Management highlights a strong focus on risk management, evidenced by low NPAs and robust collection infrastructure. The company continues to leverage its diversified funding sources and commitment to ESG principles, aiming for sustainable growth by financing underserved households and businesses.