Northern Arc Capital Ltd. · NSE:NORTHARC
Northern Arc Capital — Q1 FY27 Earnings Presentation
44 slides from Northern Arc Capital's earnings presentation, Jul 27, 2026
Slide 1: Exchange filing cover letter
Ref No.: NACL/11/JUL/2026-27 July 27, 2026 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 Sub: Investor Prese
Slide 2: Investor Presentation Q1FY27
Investor Presentation Q1FY27 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… 01 Business Overview 02 Direct to Customer 03 Credit Solutions 04 Risk Management Robust Technology Strong Liability 05 Stack 06 Franchise Board & 07 Financials 08 Management 09 Sustainability 3
Slide 5: Business Overview
Business Overview 4
Slide 6: Key Highlights – Q1FY27
Key Highlights – Q1FY27 Lending AUM Direct to Customer Mix Branches INR 16,855 64% 430 +26% +1,038 bps +61 Net Interest Income Credit Cost Net NPA INR 394 Cr 2.6% 0.5% +32% -44 bps -6 bps PAT RoA RoE INR 114 Cr 2.7% 11.5% +41% +29 bps +220 bps YoY growth 5
Slide 7: Key highlights – Q1FY27
Key highlights – Q1FY27 Total AUM grew by 26% YoY to INR 16,855 Cr Crossed D2C AUM crossed INR 10,000 crores milestone Received SEBI approval for 2 performing credit funds Reported highest ever Q1 profit after tax in history of Northern Arc ICRA assigned Outstanding ESG Impact Rating with score of 8
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 16,594 16,855 13,634 13,351 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
Slide 9: Northern Arc: Business Model
Northern Arc : Business Model Financing the Credit Needs of India’s Underserved Households & Businesses Sectors 430 3.0 mn + MSME Consumer Rural Customers Branches Direct to Customer Lending Channels Branches Digital 30 Lending – AUM INR 10,766 Cr Digital Partners Underwriting (Active) Solutions
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 Credit Solution business to build : • A strong D2C engine MSME Consumer Finance Rural Finance • A robust underwriting and # Customers 47,000+ 25,52,000+ 4,73,641 product program Direct –
Slide 12: Growth: Building granular book with D2C AUM increasing to 64%
Growth : Building granular book with D2C AUM increasing to 64% D2C AUM Growth Aligned with Stated Strategy INR crore 10,766 9,792 1,203 Multi-channel Distribution Model 1,009 7,064 7,142 430 30 953 5,802 Digital Partners 1,100 Branches 5,833 5,092 (Active) 1,512 3,502 Backed by robust Underwriting &
Slide 13: MSME – Fulfilling business credit needs through Phygital model
MSME – Fulfilling business credit needs through Phygital model Building strong footprint to scale granular portfolio Sustained Growth Momentum in MSME AUM INR crore CAGR 45% 90 Branches 7 States & 1 UT 3,691 3,761 2,574 2,687 2,021 1,284 662 Employees 835 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Jun-25 Ju
Slide 14: Consumer Finance – Sustained Momentum in Consumption Demand
Consumer Finance – Sustained Momentum in Consumption Demand Assets under Management INR crore Live Partners Ticket Size 19 Rs. 50,000 – 5,00,000 CAGR 77% Net Yield Average Tenure 13 7 15% - 16% 12 – 48 months 2 11 Backed by FLDG from CIBIL Score 8 7 Partners 650+ 21 5,802 # Customers (‘000) 5,092 3,
Slide 15: Rural Finance – Gaining AUM momentum following conscious calibration
Rural Finance – Gaining AUM momentum following a period of conscious calibration Pan India Presence Disbursements gaining momentum INR crore 450 Disbursement Collection Efficiency (X-Bucket) 101.0% 400 99.4% 99.6% 99.6% 100.0% 350 99.1% 340 Branches 98.7% 300 98.6% 99.0% 98.3% 250 98.0% 59 97.5% 98.
Slide 16: Credit Solutions
Credit Solutions 15
Slide 17: Credit Solutions – Powering Originator Partners Across the Full Credit Continuum
Credit Solutions – Powering Originator Partners Across the Full Credit Continuum Loan to Originate Altifi • AUM of Rs. 6,104 Cr • OBPP licensed platform • 110%-120% collateral of retail loans • 100K+ registered users • 373 Originator Partners • Bonds, FDs, MF & Insurance Distribution Lending platfor
Slide 18: Credit Solutions – Focus on overall credit fulfilment of Originator Partners
Credit Solutions – Focus on overall credit fulfilment of Originator Partners Gross Transaction Volume Originator Partners INR crore Disbursements Credit Enabled 4,430 4,221 66% 77% 368 373 350 328 278 298 34% 23% Q1FY26 Q1FY27 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Jun-26 88% of Partners are BBB & above
Slide 19: IR Lending – Judicious use of balance sheet to foster relationships
IR Lending – Judicious use of balance sheet to foster relationships Calibration in Lending AUM with more focus on Fee based businesses Building diversified Sector mix INR crore Mar-26 Jun-26 4% 2% 4% 1% 6,209 6,089 11% 12% 37% 37% 22% 24% 24% 22% Jun-25 Jun-26 MSME MFI Consumer Finance VF AHF Agri &
Slide 20: Risk free, fee-based businesses
Risk free, fee-based businesses Placement volumes subdued in midst of geopolitical tension INR 1,611 Cr SEBI licensed, Retail Bond Diversified Sector mix Investor mix platform Q1FY27 Q1FY27 5% Private 9% Registered Users 19% MSME Banks 25% NBFC 24% 104,110 Consumer 23% 94,875 PSUs MFI 7% Offshore 29
Slide 21: Risk Management
Risk Management 20
Slide 22: 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 Through Using our Suite of Risk Analysis Tools Deep Domain Knowledge and Qualitative Field-Level Insigh
Slide 23: Deep focus on collections
Deep focus on collections AI Native Pro-active Use of Data & Omni-channel Legal Cell Comprehensive monitoring to Analytics across payments covering all Debt Collection contain stress Collections lifecycle infrastructure relevant laws platform Pre-Delinquency X Bucket Initial – Mid Write-off Deep Buc
Slide 24: Sector wise asset quality – Consistent improvement seen across sectors
Sector wise asset quality – Consistent improvement seen across sectors GNPA (%) Credit Cost INR Crores / % AUM Mar-26 Jun-26 Q1FY26 Q1FY27 Intermediate 6,089 0.7% 0.8% 0.7% 1.5% Retail MSME 3,761 3.5% 2.6% 1.8% 0.9% Consumer 5,802 0.3% 0.2% 6.1% 5.0% Rural 1,203 0.04% 0.02% 7.7% 3.5% Total 16,855 1.
Slide 25: Portfolio Quality
Portfolio Quality INR ECL % : provision coverage for each Assets under Management Assets under Management (%) ECL : Expected Credit Loss crore/% stage By Jun’25 Sep’25 Dec’25 Mar’26 Jun’26 Jun’25 Sep’25 Dec’25 Mar’26 Jun’26 Jun’25 Sep’25 Dec’25 Mar’26 Jun’26 Jun’25 Sep’25 Dec’25 Mar’26 Jun’26 Stagin
Slide 26: Robust Technology Stack
Steck - Robust Technology. |
Slide 27: nPOS – Digital Lending proprietary platform
nPOS – Digital Lending proprietary platform Connecting Banks & Fintechs through APIs, swift data exchange & straight through processing Industry Recognition Fintechs / Banks / Merchants nPOS NBFCs Built and operated by lending practitioners, not just technology teams 164 438Bn+ Merchants / Fintechs
Slide 28: 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 29: Strong Liability Franchise
Strong Liability Franchise 28
Slide 30: Diversified sources of funding…
Diversified sources of funding… Borrowings Incremental Cost of Funds Increase in Risk Weights INR crore for NBFC Exposure in FY24 250 basis points repo 9.5% rate hike during FY23 9.0% 9.2% 9.3% 8.5% 8.8% 8.7% 8.6% 8.7% 8.0% 12,258 12,440 7.5% 9,048 9,860 7,035 7.0% 5,983 6.5% 6.0% Mar-22 Mar-23 Mar-
Slide 31: …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 1,233 ALCO guidelines clearly reflecting strong Asset Liability position 783 732 564 595 497 No negative cumulative Jun-25 Mar-26 Jun-26 mis-match a
Slide 32: Financials
Financials 31
Slide 33: Operating Parameters
Operating Parameters Portfolio Yields % and Cost of Funds %* 16.8% 16.9% 16.5% 17.1% 17.0% 16.2% 16.3% 16.5% 14.7% 13.9% 9.4% 8.8% 9.2% 9.1% 8.6% 9.9% 9.8% 8.9% 9.3% 9.3% 9.0% 8.3% 8.5% 6.5% 8.9% 8.5% 8.5% 8.5% 8.5% 5.5% FY22 FY23 FY24 FY25 FY26 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Portfolio yield CoF
Slide 34: Sustainable growth in profitability
Sustainable growth in profitability Revenue From Operations * INR crore CAGR 29% 2,387 2,071 677 1,685 1,190 540 864 FY22 FY23 FY24 FY25 FY26 Q1FY26 Q1FY27 Pre-Provisioning Operating Profit (PPoP) (INR Cr) INR crore CAGR 35% 956 263 791 207 542 285 360 FY22 FY23 FY24 FY25 FY26 Q1FY26 Q1FY27 Notes:*
Slide 35: Consolidated Income Statement
Consolidated Income Statement INR crore Q4FY26 Q1FY26 Q1FY27 YoY % FY26 Interest income1 632 513 655 28% 2,279 Interest expense 245 215 260 21% 902 Net Interest Income 387 298 394 32% 1,377 Fee & Other Income 27 27 22 -20% 108 Net Revenue 414 325 416 28% 1,484 Employee Costs 85 76 93 22% 331 Operati
Slide 36: Financial Dupont
Financial Dupont Particulars Q4FY26 Q1FY26 Q1FY27 FY26 Interest Income1 15.9% 15.3% 15.5% 15.5% Interest Expense 6.2% 6.4% 6.2% 6.1% Net Interest Income 9.8% 8.9% 9.3% 9.4% Fee and Other Income 0.7% 0.8% 0.5% 0.7% Net Revenue 10.5% 9.7% 9.8% 10.1% Employee Costs 2.2% 2.2% 2.2% 2.3% Operating Costs 1
Slide 37: Balance Sheet
Balance Sheet INR crore Jun’25 Mar’26 Jun’26 Assets Financial assets Cash and bank balances 564 497 595 Loans 10,349 12,493 13,555 Investments 1,927 2,943 2,233 Other financial assets 165 597 580 Non-financial assets 252 215 216 Total assets 13,257 16,745 17,179 Liabilities and equity Financial liab
Slide 38: Board & Management
Board & Management 37
Slide 39: 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 40: Managed by experience 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 41: Sustainability
Sustainability 40
Slide 42: ESG Impact Rating – A Testament to Sustainable Growth
ESG Impact Rating – A Testament to Sustainable Growth ICRA ESG Impact Rating 81 Outstanding Environment Impact Social Impact Governance practices (Score 78 – Good) (Score 87 – Outstanding) (Score 80 – Outstanding) NACL’s resource-light financial services NACL’s social impact is driven by its NACL’s
Slide 43: Awards and Accolades (FY26)
Awards and Accolades (FY26) Deloitte India Tech Fast 50 Best Fund Management Company ETBFSI – Best BFSI Brand Recognised Great Place to Work Hurun India Future Unicorn Award for 6 consecutive years 42
Slide 44: 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 43