Northern Arc Capital Ltd. · NSE:NORTHARC
Northern Arc Capital — Q3 FY26 Earnings Presentation
47 slides from Northern Arc Capital's earnings presentation, Jan 30, 2026
Slide 1: Exchange filing cover letter
Ref No.: NACL/07/JAN/2025-26 January 30, 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 Pr
Slide 2: Investor Presentation Q3FY26 / 9MFY26
Investor Presentation Q3FY26 / 9MFY26 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 —__
Slide 6: Business Matrix – Q3FY26
Business Matrix – Q3FY26 Gross Transaction Volume Lending AUM Direct to Customer Mix INR 10,401 Cr INR 15,121 56% +33% +18% +23% +7% +255 bps +239 bps Fund AUM Placements Direct Customers INR 3,207 Cr INR 3,669 Cr 25,79,251 +15% +0.3% +73% +43% +27% +15% Branches Digital Partners Origination Partner
Slide 7: Financial Matrix – Q3FY26
Financial Matrix – Q3FY26 PPoP NIM Opex (%) INR 265 Cr 9.9% 3.7% +51% +24% +150 bps +61 bps +13 bps -7 bps PAT RoA RoE INR 101 Cr 2.7% 10.7% +33% +10% +32 bps +5 bps +180 bps +62 bps Net NPA Net worth Book Value / Share 0.69% INR 3,788 Cr INR 235 +33 bps +13 bps +11% +3% +11% +3% YoY growth QoQ grow
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 15,121 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
Slide 9: Northern Arc: Business Model
Northern Arc : Business Model Financing the Credit Needs of India’s Underserved Households & Businesses Sectors 368 2.6 mn + MSME Consumer Rural Customers Branches Direct to Customer Lending Channels Branches Digital 55 Lending – AUM INR 8,492 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 41,000+ ~19,88,000 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 64% CAGR (Mar-21 to Mar-25) 8,492 INR crore 934 Multi-channel Distribution Model 7,064 6,567 1,100 5,833 368 55 1,275 4,266 Branches Digital Partners 1,512 3,390 3,385 2,952 Backed by robust Underwriting & Technology 2,
Slide 13: MSME
MSME Building strong footprint to scale granular portfolio Northern Arc’s Value Proposition End to end digital journey Competitive pricing 90 Branches 1 Added 17 branches in 9MFY26 Handholding till Ease of documentation 13 7 loan closure 7 States 3 17 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% - 16% 12 – 48 months 2 11 Repeat Customers CIBIL Score 8 7 ~70% 650+ 21 # Customers (‘000) 4,266 3,390 2,952 2,300 1,988 1,458 1,091 1,
Slide 15: Rural Finance
Rural Finance Pan India Presence Disbursements run rate reached pre-stress level 278 Branches 19 19 8 States and 1 UT 268 260 254 12 3 214 8 137 101 116 Total Employees – 1,801 82 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 2 4 129 Strong Collection team All new disbursements w.e.f. March 25 co
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. 6,629 Cr • OBPP licensed platform • 110%-120% collateral of retail loans • 80K+ registered users • 350+ 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 23,579 CAGR 19% 21,127 20,653 12% 12% 13% 17,780 16,604 31% 15,334 8% 25% 22% 29% 13% 11,621 28% 350 357 10% 328 34% 32% 298 23% 278 238 63% 58% 57% 63% 67% 45% 55% Mar
Slide 19: Lending – Judicious use of Balance Sheet to foster relationships
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-21 2% Dec-25 6,539 6,629 6% 9% 5,683 6% 28% 19% 33% 12% 7% 18% 38% 22% Dec-24 Sep-25 Dec-25 MSME MFI Consumer Finance VF A
Slide 20: Placements – Risk free credit enablement
Placements – Risk free credit enablement Placement volume Sector mix % – Contribution of MFI started improving INR crore 9MFY25 9MFY26 9,068 1% 8,037 18% 14% 23% 33% 6% 20% 9% 18% 25% 33% 9MFY25 9MFY26 MSME Consumer MFI AHF Vehicle Agri Placement Fee income Foreign participation subdued INR crore FY
Slide 21: Credit Funds – Strong track record of ~10 years
Credit Funds – Strong track record of ~10 years Background Credit Funds AUM INR crore 3,500 1.2% 1.3% 1.4% Capital Raised & Deployed Fund / Strategy Details 3,000 1.2% 2,500 1.0% Funds 6 Active Funds 2,000 0.8% Rs. 15,000 Cr+ Deployed 1,500 3,207 0.6% 6 Fully Exited Funds 2,796 Returns Delivered 1,0
Slide 22: Risk Management
Risk Management 21
Slide 23: 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 24: 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 25: Sector wise asset quality
Sector wise asset quality Credit Cost (%) INR Crores / % AUM1 GNPA (%)1 Q1FY26 Q2FY26 Q3FY26 Intermediate Retail 6,629 0.50% 0.7% 1.3% 0.4% MSME 3,292 4.61% 1.8% 1.8% 2.9% Consumer 4,266 0.46% 6.1% 4.9% 6.5% Rural 934 0.08% 7.7% 5.1% 5.3% Total 15,121 1.36% 3.0% 2.7% 2.9%2 1. Data as on December 31,
Slide 26: 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 27: Portfolio Quality
Portfolio Quality INR ECL % : provision coverage for each Assets under Management Assets under Management (%) ECL : Expected Credit Loss crore/% stage By Dec’24 Mar’25 Jun’25 Sep’25 Dec’25 Dec’24 Mar’25 Jun’25 Sep’25 Dec’25 Dec’24 Mar’25 Jun’25 Sep’25 Dec’25 Dec’24 Mar’25 Jun’25 Sep’25 Dec’25 Stagin
Slide 28: Robust Technology Stack
Robust Technology Stack 27
Slide 29: SaaS Offerings: NuScore and nPOS
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 30: 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 31: Strong Liability Franchise
Strong Liability Franchise 30
Slide 32: 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% 11,200 8.0% 9,048 9,860 7.5% 7,035 5,983 7.0% 3,932 6.5% 6.0% FY
Slide 33: 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 ALCO guidelines clearly 1,138 reflecting strong Asset Liability position 762 715 647 570 No negative cumulative Mar-25 Sep-25 Dec-25 mis-match
Slide 34: Financials
Financials 33
Slide 35: Strong Operating Parameters
Strong Operating Parameters Portfolio Yield % and Cost of Funds %* 16.8% 16.9% 17.2% 17.1% 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% 9.9% 8.9% 9.3% 9.0% 8.3% 6.5% 8.7% 8.9% 8.4% 8.5% 8.5% 5.6% 5.5% FY21 FY22 FY23 FY24 FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Portfolio y
Slide 36: Sustainable growth in profitability
Sustainable growth in profitability Revenue From Operations * INR crore CAGR 33% 2,071 1,685 1,728 1,523 1,190 864 657 FY21 FY22 FY23 FY24 FY25 9MFY25 9MFY26 Pre-Provisioning Operating Profit (PPoP) (INR Cr) CAGR 35% 791 685 542 562 360 235 285 FY21 FY22 FY23 FY24 FY25 9MFY25 9MFY26 Notes:* Adjusted
Slide 37: Consolidated Income Statement
Consolidated Income Statement INR crore Q3FY25 Q2FY26 Q3FY26 YoY % QoQ % 9MFY25 9MFY26 YoY % Interest income1 478 533 602 26% 13% 1450 1,647 14% Interest expense 211 211 231 10% 10% 624 657 5% Net Interest Income 267 322 371 39% 15% 826 990 20% Fee & Other Income 21 21 32 49% 50% 72 81 11% Net Reven
Slide 38: Financial Dupont
Financial Dupont Particulars Q3FY25 Q2FY26 Q3FY26 9MFY25 9MFY26 Interest Income1 15.0% 15.3% 16.1% 15.6% 15.4% Interest Expense 6.6% 6.0% 6.2% 6.7% 6.1% Net Interest Income 8.4% 9.3% 9.9% 8.9% 9.3% Fee and Other Income 0.7% 0.6% 0.9% 0.8% 0.7% Net Revenue 9.0% 9.9% 10.8% 9.7% 10.0% Employee Costs 2.
Slide 39: Balance Sheet
Balance Sheet INR crore Dec’24 Sep’25 Dec’25 Assets Financial assets Cash and bank balances 513 570 762 Loans 9,520 10,816 11,306 Investments 1,976 2,409 2,773 Other financial assets 183 312 333 Non-financial assets 210 255 232 Total assets 12,401 14,362 15,406 Liabilities and equity Financial liabi
Slide 40: Board & Management
Board & Management 39
Slide 41: 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 42: 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 43: Sustainability
Sustainability 42
Slide 44: ESG Framework
ESG Focused Business Model Positively Impacting 130 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 45: 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 46: 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 45
Slide 47: 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 46