Northern Arc Capital Ltd. · NSE:NORTHARC
Northern Arc Capital — Q4 FY26 Earnings Presentation
44 slides from Northern Arc Capital's earnings presentation, May 2026
Slide 1: Investor Presentation Q4FY26 / FY26
Investor Presentation Q4FY26 / FY26 Financing the Retail Credit Needs of India’s AA-(Stable) Underserved Households & Businesses across By ICRA Limited & India Ratings focused sectors 1
Slide 2: 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 3: 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 4: Business Overview
Business Overview 4
Slide 5: Key Highlights – Q4FY26
Key Highlights – Q4FY26 Lending AUM Direct to Customer Mix Branches INR 16,594 59% 432 +22% +10% +720 bps +285 bps +72 +64 Net Interest Income Credit Cost Stage II Assets INR 387 Cr 2.2% 1.5% +21% +4% -383bps -126 bps -38bps -34bps PAT RoA RoE INR 133 Cr 3.3% 14.0% +251% +32% +217 bps +66 bps +951 b
Slide 6: Key Highlights – FY26
Key Highlights – FY26 D2C Lending AUM Placements Direct Customers INR 9,792 Cr INR 11,834 Cr 29,55,966 +39% -5% +39% NIM Credit Cost PPoP 9.4% 2.8% INR 956 Cr +25 bps -42 bps +21% PAT RoA Book Value / Share INR 406 Cr 2.8% 241 +33% +34 bps +13% YoY growth 6
Slide 7: 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 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 8: Diversified, Granular Lending Book with <1% NNPA
Diversified, Granular Lending Book with <1% NNPA… Asset Under Management Increasing Share of Direct to Customer Lending INR crore INR crore CAGR 26% D2C AUM D2C Mix% 16,594 12,000 70% 59% 13,634 52% 60% 50% 10,000 11,710 50% 38% 8,000 9,009 40% 7,108 6,000 23% 9,792 5,221 30% 4,000 19% 7,064 20% 5,8
Slide 9: …driving higher NIMs and profitability
…driving higher NIMs and profitability Total Income NIM % INR crore CAGR 29% 9.4% 2,387 9.1% 2,071 8.3% 1,685 6.5% 1,190 5.6% 5.5% 864 657 FY21 FY22 FY23 FY24 FY25 FY26 FY21 FY22 FY23 FY24 FY25 FY26 Opex (%) PAT CAGR 43% 4.0% 406 3.6% 3.6% 3.2% 308 305 2.6% 230 2.0% 173 68 FY21 FY22 FY23 FY24 FY25 F
Slide 10: Northern Arc : Business Model
Northern Arc : Business Model Financing the Credit Needs of India’s Underserved Households & Businesses Sectors 432 2.9 mn + MSME Consumer Rural Customers Branches Direct to Customer Lending Channels Branches Digital 57 Lending – AUM INR 9,792 Cr Digital Partners Underwriting Solutions across fo
Slide 11: Direct to Customers Lending
Direct to Customers Lending 11
Slide 12: 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 46,000+ 24,12,000+ ~5,00,000 product program Direct – Branch / •
Slide 13: Growth: Building granular book with D2C AUM increasing
Growth : Building granular book with D2C AUM increasing from 21% to 59% in 5 years Assets under Management INR crore ~10X in 5 years 9,792 Multi-channel Distribution Model 1,009 7,064 432 57 1,100 Branches Digital Partners 5,833 5,092 1,512 Backed by robust Underwriting & Technology 3,390 3,385 2,30
Slide 14: MSME – Fulfilling business credit needs through Phygital model
MSME – Fulfilling business credit needs through Phygital model Building strong footprint to scale granular portfolio AUM grew at 5 yr CAGR of 38% INR crore CAGR 38% 90 Branches 1 Added 17 branches in FY26 13 7 3,691 7 States 2,574 3 2,021 17 1,284 9 13 655 Employee 729 835 Strength 27 Mar-21 Mar-22
Slide 15: Consumer Finance – Focus on earning net yield of 15-16%
Consumer Finance – Focus on earning net yield of 15-16% Assets under Management Net Yield holding up in midst on volatility in provisions INR crore 16% 15% 15% 13 7 2 11 5,092 8 7 Mar-24 Mar-25 Mar-26 Net Yield 21 3,390 # Customers (‘000) 2,300 1,091 523 146 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
Slide 16: Rural Finance – Investment in branches and improved collection efficiency
Rural Finance – Investment in branches and improved collection efficiency to drive growth Pan India Presence Disbursements for FY26 grew by 24% YoY 350 Disbursement Collection Efficiency (X-Bucket) 99.6% 100.0% 99.4% 300 99.1% 99.5% 342 Branches 98.7% 99.0% Added 64 branches in Q4FY26 250 98.6% 98.3
Slide 17: Credit Solutions
Credit Solutions 17
Slide 18: 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. 6,802 Cr • OBPP licensed platform • 110%-120% collateral of retail loans • 94K+ registered users • 365+ Originator Partners • Bonds, FDs, MF & Insurance Distribution Lending platfor
Slide 19: 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 CAGR 16% 23,579 24,170 21,127 20,653 16,604 69% 70% 11,621 350 368 75% 71% 328 66% 298 278 77% 238 34% 25% 29% 31% 30% 23% FY21 FY22 FY23 F
Slide 20: 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-21 Mar-26 6,802 2% 6,629 6% 4% 2% 6,570 11% 28% 19% 37% 22% 7% 38% 24% Mar-25 Dec-25 Mar-26 MSME MFI Consumer Finance V
Slide 21: Placements – Risk-free credit enablement with skin in the game
Placements – Risk-free credit enablement with skin in the game Placement Fee income Sector mix % – Contribution of MFI started improving INR crore FY25 FY26 31.4 1% 25.8 18% 22% 20% 32% 7% 15% 17% 11% 25% 32% FY25 FY26 MSME Consumer MFI AHF Vehicle Agri Business update Foreign participation subdued
Slide 22: Credit Funds – Strong track record of ~10 years
Credit Funds – Strong track record of ~10 years Background Credit Funds AUM INR crore Capital Raised & Deployed Fund / Strategy Details 3,158 3,092 Funds 6 Active Funds Rs. 15,000 Cr+ Deployed 6 Fully Exited Funds XIRR in 6 exited funds, 14.57% without default/delay 2 PMS Schemes Active Consistent Q
Slide 23: Risk Management
Risk Management 23
Slide 24: 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 25: 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 26: Sector wise asset quality – FY26 Credit cost in line with guidance
Sector wise asset quality – FY26 Credit cost in line with guidance of 2.8% GNPA (%) Credit Cost (%) INR Crores / % AUM1 Dec-25 Mar-26 FY25 FY26 Intermediate Retail 6,802 0.5% 0.7% 1.5% 1.1% MSME 3,691 4.6% 3.5% 2.4% 3.1% Consumer 5,092 0.5% 0.3% 6.0% 4.9% Rural 1,009 0.08% 0.04% 6.7% 4.8% Total 16,5
Slide 27: Portfolio Quality – Consistent improvement in early buckets (Stage II)
Portfolio Quality – Consistent improvement in early buckets (Stage II) INR ECL % : provision coverage for each Assets under Management Assets under Management (%) ECL : Expected Credit Loss crore/% stage By Mar’25 Jun’25 Sep’25 Dec’25 Mar’26 Mar’25 Jun’25 Sep’25 Dec’25 Mar’26 Mar’25 Jun’25 Sep’25 De
Slide 28: Robust Technology Stack
Steck - Robust Technology. |
Slide 29: nPOS – Digital Lending proprietary platform
nPOS – Digital Lending proprietary platform Connecting Banks & Fintechs through APIs, swift data exchange & straight through processing Industry Recognition Banks / Fintechs nPOS NBFCs Built and operated by lending practitioners, not just technology teams 57 400Bn+ Digital Partners Cumulative Disbur
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 31
Slide 32: Diversified sources of funding…
Diversified sources of funding… Borrowings Incremental Cost of Funds 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% 12,258 8.0% 9,048 9,860 7.5% 7,035 5,983 7.0% 3,932 6.5% 6.0% Mar-21
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 reflecting strong Asset Liability position 762 783 715 647 497 No negative cumulative Mar-25 Dec-25 Mar-26 mis-match a
Slide 34: Financials
Financials 34
Slide 35: Consolidated Income Statement
Consolidated Income Statement INR crore Q4FY25 Q3FY26 Q4FY26 YoY % QoQ % FY25 FY26 YoY % Interest income1 519 602 632 22% 5% 1,969 2,279 16% Interest expense 198 231 245 24% 6% 823 902 10% Net Interest Income 320 370 387 21% 4% 1,147 1,377 20% Fee & Other Income 30 31 27 -9% -14% 102 108 6% Net Reve
Slide 36: Financial Dupont
Financial Dupont Particulars Q4FY25 Q3FY26 Q4FY26 FY25 FY26 Interest Income1 16.2% 16.1% 15.9% 15.7% 15.5% Interest Expense 6.2% 6.2% 6.2% 6.5% 6.1% Net Interest Income 10.0% 9.9% 9.8% 9.1% 9.4% Fee and Other Income 0.9% 0.9% 0.7% 0.8% 0.7% Net Revenue 10.9% 10.8% 10.5% 9.9% 10.1% Employee Costs 2.1
Slide 37: Balance Sheet
Balance Sheet INR crore Mar’25 Dec’25 Mar’26 Assets Financial assets Cash and bank balances 647 762 497 Loans 10,572 11,306 12,493 Investments 2,052 2,773 2,943 Other financial assets 144 333 597 Non-financial assets 223 232 215 Total assets 13,638 15,406 16,745 Liabilities and equity Financial liab
Slide 38: Board & Management
Board & Management 38
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 41
Slide 42: Empowering community through CSR
Empowering community through CSR Education Education Construction of Shri Ramchandra Institute of Medical Sciences (SRIMS) College - Supported 5 lakhs + elementary school students to upskill their knowledge with Nursing College Building classroom in Aurangabad Foundational Literacy and Numeracy thro
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 43
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 44