Northern Arc Capital Ltd. · NSE:NORTHARC
Northern Arc Capital — Q2 FY2026 Earnings Presentation
46 slides from Northern Arc Capital's earnings presentation, Oct 31, 2025
Slide 1: Exchange filing cover letter
a + NORTHERN ARC Ref No.: NACL/06/OCT / 2025-26 October 3t,2025 To, To, BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza,C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai- 400001 Bandra (E) Scrip Code: 544260 Mumbai - 400 051 Scrip Symbol: NORTHARC
Slide 2: Investor Presentation Q2FY26 / H1FY26
Investor Presentation Q2FY26 / H1FY26 Financing the Retail Credit Needs of India’s AA-(Stable) Underserved Households & Businesses across By ICRA Limited & India Ratings focused sectors 1
Slide 3: Disclaimer
Disclaimer "This presentation and accompanying slides (the “Presentation”) has been prepared by Northern Arc Capital Limited (“Company”) to be presented during the analyst call as required under Regulation 46 (2)(o) of the SEBI (LODR) Regulations, 2015, and is not for release, distribution or public
Slide 4: Content
Content… Direct to Customer 01 Business Overview 02 Lending Intermediate Retail 03 Credit Solutions 04 Risk Management Robust Technology Strong Liability 05 Stack 06 Franchise 07 Financials 08 Strategy Board & 09 Management 10 Sustainability 3
Slide 5: Business Overview
“Business Overview —__
Slide 6: Business Matrix – Q2FY26
Business Matrix – Q2FY26 Gross Transaction Volume Lending AUM Direct to Customer Mix INR 8,787 Cr INR 14,166 54% -5% +19% +15% +6% +105 bps +35 bps Fund AUM Placements Direct Customers INR 3,198 Cr INR 2,561 Cr 22,37,706 +14% +1% -23% -10% +7% +4% Branches Retail Lending Partners Origination Partner
Slide 7: Financial Matrix – Q2FY26
Financial Matrix – Q2FY26 PPoP NIM Opex (%) INR 213 Cr 9.3% 3.7% 1% 3% +16 bps +37 bps +53 bps +21 bps PAT RoA RoE INR 92 Cr 2.6% 10.1% -6% +13% -46 bps +22 bps -261 bps +78 bps Net NPA Networth Book Value / Share 0.56% INR 3,663 Cr INR 227 +38 bps Flat +10% +4% +10% +4% YoY growth QoQ growth 6
Slide 8: Demonstrating growth in AUM and profitability across business cycles
Demonstrating growth in AUM and profitability across business cycles Asset under management INR crore MFI overleverage Demonetization IL&FS Crisis Covid Pandemic stress 13,634 11,710 9,009 7,108 4,342 5,221 2,734 3,664 3,883 1,019 1,655 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23
Slide 9: Northern Arc: Business Model
Northern Arc : Business Model Financing the Credit Needs of India’s Underserved Households & Businesses Sectors 372 2.2 mn + MSME Consumer Rural Customers Branches Direct to Customer Lending Channels Branches Digital 55 Lending – AUM INR 7,627 Cr Digital Partners Underwriting Solutions across fo
Slide 10: Direct to Customers Lending
Direct to Customers Lending 9
Slide 11: Direct to Customers Lending: Built a strong retail engine
Direct to Customers Lending: Built a strong retail engine Northern Arc Customer Base Leveraged learnings from the IR business to build : • A strong D2C engine MSME Consumer Finance Rural Finance • A robust underwriting and # Customers 40,000+ ~16,70,000 5,00,000+ product program Direct – Branch / •
Slide 12: Growth: Strong growth led by expansion and partnerships
Growth : Strong growth led by expansion and partnerships Assets under Management 8,000 64% CAGR (Mar-21 to Mar-25) 7,627 INR crore 7,064 910 Multi-channel Distribution Model 7,000 6,498 1,100 6,000 5,833 1,400 372 55 5,000 1,512 3,652 Branches Digital Partners 3,390 4,000 3,385 2,934 Backed by robus
Slide 13: MSME
MSME Building strong footprint to scale granular portfolio Northern Arc’s Value Proposition End to end digital journey Competitive pricing 88 Branches 1 Added 15 branches in H1FY26 Handholding till Ease of documentation 13 7 loan closure 7 States 3 15 Strong in-house collections Average Bureau – 600
Slide 14: Consumer Finance
Consumer Finance Assets under Management 120% CAGR (Mar-21 to Mar-25) Live Partners Ticket Size 23 Rs. 50,000 – 5,00,000 INR crore Net Yield Average Tenure 13 7 15% - 17% 12 – 48 months 2 11 Repeat Customers CIBIL Score 8 7 70% 650+ 21 # Customers (‘000) 3,652 3,390 2,934 2,300 1,672 1,458 1,045 1,0
Slide 15: Rural Finance
Rural Finance Pan India Presence Product Characteristics Digitally led journey throughout sourcing, risk, credit with live collections and monitoring modules. 284 Branches 19 ATS – INR 45,000 Yield – 24% - 25% 19 12 3 10 8 States and 1 UT ` Average Tenure – 24 JLG Product & Individual months loans 8
Slide 16: Intermediate Retail Credit Solution Business
Intermediate Retail Credit Solution Business 15
Slide 17: Credit Solutions – Focusing on overall credit enablement
Credit Solutions – Focusing on overall credit enablement Gross Transaction Volume Lending Book 357 Originator Partners 12% AUM CAGR (Mar-21 to Mar-25) INR crore INR crore 5,988 5,918 4,922 6,570 6,539 5,449 5,623 5,877 5,810 4,235 Q2FY25 Q1FY26 Q2FY26 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Sep-24 Sep-25
Slide 18: Strong Fee Volumes
Strong Fee Volumes Northern Arc’s Unique Fee Franchise Fund Management Placements • Managed 12 funds and 3 PMS with successful exit of 6 Funds • Offers structured and syndicate financing for our Originator Partners • 6 Funds + 3 PMS currently active • 200+ investor partners, INR 1 trillion+ of place
Slide 19: Risk Management
Risk Management 18
Slide 20: Robust Risk Management Framework
Robust Risk Management Framework Robust risk management framework based on sector expertise, ground-level insights, extensive data analytics and proprietary risk models Manage organizational risks Using our Suite of Risk Analysis Tools Through Deep Domain Knowledge and Transaction Qualitative Field-
Slide 21: Deep focus on collections
Deep focus on collections Use of Data & Analytics Omni-channel Pro-active monitoring to Legal Cell covering all across Collections payments contain stress relevant laws lifecycle infrastructure Pre-Delinquency X Bucket Initial – Mid Write-off Deep Buckets Management Collection Buckets Recoveries Pre
Slide 22: Sector wise asset quality
Sector wise asset quality Credit Cost (%) INR Crores AUM1 GNPA (%) Q1FY26 Q2FY26 Intermediate Retail 6,539 0.60% 0.7% 1.3% MSME 3,065 3.55% 1.8% 1.8% Consumer 3,652 0.39% 6.1% 4.9% Rural 910 0.10% 7.7% 5.1% Total 14,166 1.15% 3.0% 2.7% 1. Data as on September 30, 2025 21
Slide 23: Diversified & Granular portfolio resulting in GNPA within desired range
Diversified & Granular portfolio resulting in GNPA within desired range Diversification augmented by proprietary tools and portfolio granularity driving asset quality Sector Diversification Asset Quality Drivers Granular Portfolio • Exposure (in terms of AUM) Proprietary Scorecards for towards Top 1
Slide 24: Portfolio Quality
Portfolio Quality INR ECL % : provision coverage for each Assets under Management Assets under Management (%) ECL : Expected Credit Loss crore/% stage By Sep’24 Dec’24 Mar’25 Jun’25 Sep’25 Sep’24 Dec’24 Mar’25 Jun’25 Sep’25 Sep’24 Dec’24 Mar’25 Jun’25 Sep’25 Sep’24 Dec’24 Mar’25 Jun’25 Sep’25 Stagin
Slide 25: Robust Technology Stack
Robust Technology Stack 24
Slide 26: SaaS Offerings
SaaS Offerings : NuScore nPOS A Machine-Learning-Based Solution to Aid Originators in their Connecting banks & financial institutions through APIs, enabling Underwriting swift data exchange & straight through processing of loans Borrower level assessment along with a detailed analytics report Co-len
Slide 27: Leveraging Technology Stack
Leveraging Technology Stack Lead Generation Customer Onboarding Credit Underwriting Pre-Disbursal Loan Disbursal Loan Servicing • Digital form • OKYC/EKYC PD with customer CAM • E-Nach • Digital disbursal • Customer app summary assessment IMPS/RTGS/NEFT • Feet on Street • PAN verification • E-Sign •
Slide 28: Strong Liability Franchise
Strong Liability Franchise 27
Slide 29: Diversified sources of funding
Diversified sources of funding… Borrowings Incremental Cost of Funds (1) INR crore 10.5% Increase in Risk Weights for NBFC Exposure in FY24 10.0% 10.2% 250 basis points repo 9.5% rate hike during FY23 9.0% 9.3% 9.2% 8.5% 8.6% 8.8% 8.7% 9,860 10,331 8.0% 9,048 7.5% 7,035 5,983 7.0% 3,932 6.5% 6.0% Ma
Slide 30: With proactive liquidity management
…With proactive liquidity management Liquidity position INR crore Cash & Bank Balance Undrawn Sanction Consistently adhered to all RBI norms as well as 1,200 1,233 1,138 ALCO guidelines clearly reflecting strong Asset Liability position 647 564 570 No negative cumulative Mar-25 Jun-25 Sep-25 mis-mat
Slide 31: Financials
Financials 30
Slide 32: Strong Operating Parameters
Strong Operating Parameters Portfolio Yields % and Cost of Funds %* 16.8% 16.9% 17.1% 17.2% 16.3% 16.2% 16.3% 14.7% 14.1% 13.9% 10.2% 8.8% 9.2% 9.1% 8.6% 9.4% 10.0% 8.9% 8.9% 9.3% 9.0% 8.3% 6.5% 9.1% 8.7% 8.9% 8.4% 8.5% 5.6% 5.5% FY21 FY22 FY23 FY24 FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Portfolio
Slide 33: Sustainable growth in profitability
Sustainable growth in profitability Revenue From Operations * INR crore CAGR 33% 2,071 1,685 1,094 1,024 1,190 864 657 FY21 FY22 FY23 FY24 FY25 H1FY25 H1FY26 Pre-Provisioning Operating Profit (PPoP) (INR Cr) CAGR 35% 791 420 387 542 360 235 285 FY21 FY22 FY23 FY24 FY25 H1FY25 H1FY26 Notes:* Adjusted
Slide 34: Consolidated Income Statement
Consolidated Income Statement INR crore Q2FY25 Q1FY26 Q2FY26 YoY % QoQ % H1FY25 H1FY26 YoY % Interest income1 492 513 533 8% 4% 973 1,046 7% Interest expense 205 215 211 3% -2% 414 426 3% Net Interest Income 288 298 322 11% 8% 559 620 10% Fee & Other Income 26 27 21 -17% -21% 51 48 -5% Net Revenue 3
Slide 35: Financial Dupont
Financial Dupont Particulars Q2FY25 Q1FY26 Q2FY26 H1FY25 H1FY26 Interest Income* 15.6% 15.3% 15.3% 15.8% 15.2% Interest Expense 6.5% 6.4% 6.0% 6.7% 6.2% Net Interest Income 9.1% 8.9% 9.3% 9.1% 9.0% Fee and Other Income 0.8% 0.8% 0.6% 0.8% 0.7% Net Revenue 9.9% 9.7% 9.9% 9.9% 9.7% Employee Costs 2.3%
Slide 36: Balance Sheet
Balance Sheet INR crore Sep’24 Jun’25 Sep’25 Assets Financial assets Cash and bank balances 811 564 570 Loans 10,004 10,349 10,816 Investments 1,766 1,927 2,409 Other financial assets 179 165 312 Non-financial assets 176 252 255 Total assets 12,936 13,257 14,362 Liabilities and equity Financial liab
Slide 37: Strategy
Strategy 36
Slide 38: Strategy for Sustainable growth
Strategy for Sustainable growth Direct to Customer Lending Credit Solutions • Focus on MSME sector with meaningful growth • Harnessing Credit Solution Ecosystem for Intermediate Retail Partners with focus on overall credit enablement through • Leverage Digital & Partnership channels to grow Consumer
Slide 39: Board & Management
Board & Management 38
Slide 40: Board of Directors
Board of Directors : Mr. Ashish Mehrotra Ms. Anuradha Rao Mr. Ashutosh Arvind Pednekar Mr. Sandeep Dhar Managing Director & Non-Executive Non-Executive Non-Executive Chief Executive Officer Non-Independent Director Independent Director Independent Director ---------------------------------------- --
Slide 41: Managed by experienced leadership team
Managed by experience leadership team Pardhasaradhi Rallabandi Atul Tibrewal Saurabh Jaywant Group Risk Officer & Governance Chief Financial Officer Chief Legal Officer Head 31+ years of experience in Banking 22+ years of experience in finance 22+ years of experience in Previously associated with Pr
Slide 42: Sustainability
Sustainability 41
Slide 43: ESG Framework
ESG Focused Business Model Positively Impacting 129 Mn+ Lives Robust ESG Framework with Effective Tools & Regular UNSDG(1) Alignment Built into the Business Model Monitoring • Committed to responsible financing framework • Adherence to Leapfrog’s ‘Responsible Investment Code’ Group Level • Adoption
Slide 44: Empowering community through CSR
Empowering community through CSR Education Education Support elementary students in Andhra Pradesh, Karnataka, and Bihar by providing Upgrading rural school infrastructure in Palghar district, Maharashtra. These includes learning and training materials to improve basic literacy and numeracy. solar p
Slide 45: Awards and Accolades
Awards and Accolades ET BFSI - Best Digital Lending India NBFC Summit – Best Lending ET Impactful CEO Award Platform – nPOS NBFC of the Year Deloitte India Tech Fast 50 Hurun India Future Unicorn Award 44
Slide 46: Thank you!
Thank you! For any query, please contact : Atul Tibrewal Chief Financial Officer atul.tibrewal@northernarc.com Chetan Parmar Head Investor Relations chetan.parmar@northernarc.com 45
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