Northern Arc Capital Ltd. · NSE:NORTHARC
Northern Arc Capital — Q2 FY26 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 4
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: Strong growth led by expansion and partnerships
h : Strong growth led by expansion and partnerships er Management CAGR (Mar-21 to Mar-25) 7,627 7,064 910 Multi-channel Distribution Model 6,498 1,100 5,833 1,400 372 55 1,512 3,652 Branches Digital Partners 3,390 3,385 2,934 Backed by robust Underwriting & Technology 2,300 1,010 1,659 1,091 3,065 n
Slide 13: MSME: Strong footprint to scale granular portfolio
rong 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 7 loan closure 7 States 3 15 Strong in-house collections Average Bureau – 600+ 9 13 700+ Employe
Slide 14: Consumer Finance
mer Finance er Management GR (Mar-21 to Mar-25) Live Partners Ticket Size 23 Rs. 50,000 – 5,00,000 Net Yield Average Tenure 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 1,091 523 457 304 80 Mar-22 Mar-23 Mar
Slide 15: Rural Finance
inance 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 2 1,985 Employee S
Slide 16: Intermediate Retail Credit Solution Business
Intermediate Retail Credit Solution Business
Slide 17: Solutions – Focusing on overall credit enablement
Solutions – Focusing on overall credit enablement saction Volume Lending Book Originator Partners 12% AUM CAGR (Mar-21 to Mar-25) INR crore 5,988 5,918 4,922 6,570 6,539 5,449 5,623 5,877 5,810 4,235 2FY25 Q1FY26 Q2FY26 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Sep-24 Sep-25 Placement + Disbursement + Fund
Slide 18: Northern Arc's Unique Fee Franchise
Fee Volumes Northern Arc’s Unique Fee Franchise agement Placements 12 funds and 3 PMS with successful exit of 6 Funds • Offers structured and syndicate financing for our Originator Partners 3 PMS currently active • 200+ investor partners, INR 1 trillion+ of placements volume since inception agement
Slide 19: Risk Management
Risk Management
Slide 20: Robust Risk Management Framework
st Risk Management Framework 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-Level Insig
Slide 21: Strong focus on collections
focus on collections Use of Data & Analytics Omni-channel ro-active monitoring to Legal Cell covering all across Collections payments contain stress relevant laws lifecycle infrastructure elinquency X Bucket Initial – Mid Write-off Deep Buckets agement Collection Buckets Recoveries unce likelihood I
Slide 22: Sector wise asset quality
or wise asset quality Credit Cost (%) es AUM1 GNPA (%) Q1FY26 Q2FY26 diate Retail 6,539 0.60% 0.7% 1.3% 3,065 3.55% 1.8% 1.8% er 3,652 0.39% 6.1% 4.9% 910 0.10% 7.7% 5.1% 14,166 1.15% 3.0% 2.7% September 30, 2025
Slide 23: Diversified & Granular portfolio resulting in GNPA within desired range
sified & Granular portfolio resulting in GNPA within desired range Diversification augmented by proprietary tools and portfolio granularity driving asset quality tor Diversification Asset Quality Drivers Granular Portfolio • Exposure (in terms of AUM) Proprietary Scorecards for towards Top 10 borrow
Slide 24: Portfolio Quality
olio Quality ECL % : provision coverage for each Assets under Management Assets under Management (%) ECL : Expected Credit Loss stage 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 80 11,247 12,529 12,141 13,031
Slide 25: Robust Technology Stack
Robust Technology Stack
Slide 26: Technology Offerings: NuScore and nPOS
fferings : NuScore nPOS ne-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-lending / Sole l
Slide 27: Leveraging Technology Stack
raging Technology Stack tion Customer Onboarding Credit Underwriting Pre-Disbursal Loan Disbursal Loan Servicing m • OKYC/EKYC PD with customer CAM • E-Nach • Digital disbursal • Customer app summary assessment IMPS/RTGS/NEFT eet • PAN verification • E-Sign • CRM platform Online valuation report • W
Slide 28: Strong Liability Franchise
Strong Liability Franchise
Slide 29: Diversified sources of funding
fied sources of funding… wings Incremental Cost of Funds (1) 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% 2 6.5% 6.0% 1 Mar-22 Mar-23 Mar-24 Mar-2
Slide 30: Robust and proactive liquidity management
proactive liquidity management osition 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 47 564 570 No negative cumulative Mar-25 Jun-25 Sep-25 mis-match across all buckets (well
Slide 31: Financials
Financials
Slide 32: Key Operating Parameters
g Operating Parameters ields % and Cost of Funds %* 16.8% 16.9% 17.1% 17.2% 16.3% 16.2% 16.3% 14.7% 13.9% 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% 5.5% FY22 FY23 FY24 FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Portfolio yield CoF NIM Portfolio yield CoF NIM
Slide 33: Sustainable growth in profitability
ainable growth in profitability m Operations * GR 33% 2,071 1,685 1,094 1,024 1,190 864 FY22 FY23 FY24 FY25 H1FY25 H1FY26 ning Operating Profit (PPoP) (INR Cr) GR 35% 791 420 387 542 360 285 FY22 FY23 FY24 FY25 H1FY25 H1FY26 fees and commission expense ations is Interest Income and Fee income
Slide 34: Consolidated Income Statement
olidated Income Statement e Q2FY25 Q1FY26 Q2FY26 YoY % QoQ % H1FY25 H1FY26 YoY % ncome1 492 513 533 8% 4% 973 1,046 7% expense 205 215 211 3% -2% 414 426 3% rest Income 288 298 322 11% 8% 559 620 10% her Income 26 27 21 -17% -21% 51 48 -5% enue 313 325 343 10% 6% 610 668 10% e Costs 72 76 84 17% 11%
Slide 35: Financial Dupont
ncial Dupont ars Q2FY25 Q1FY26 Q2FY26 H1FY25 H1FY26 Income* 15.6% 15.3% 15.3% 15.8% 15.2% Expense 6.5% 6.4% 6.0% 6.7% 6.2% rest Income 9.1% 8.9% 9.3% 9.1% 9.0% Other Income 0.8% 0.8% 0.6% 0.8% 0.7% enue 9.9% 9.7% 9.9% 9.9% 9.7% ee Costs 2.3% 2.2% 2.4% 2.3% 2.3% ng Costs 0.9% 1.3% 1.3% 1.3% 1.3% pera
Slide 36: Balance Sheet
nce Sheet Sep’24 Jun’25 Sep’25 assets nd bank balances 811 564 570 10,004 10,349 10,816 ments 1,766 1,927 2,409 inancial assets 179 165 312 ncial assets 176 252 255 ets 12,936 13,257 14,362 s and equity liabilities ings & Debt Securities 9.271 9,422 10,331 inancial liabilities 281 242 310 n-financia
Slide 37: Strategy
Strategy
Slide 38: Strategy for Sustainable growth
egy for Sustainable growth Customer Lending Credit Solutions on MSME sector with meaningful growth • Harnessing Credit Solution Ecosystem for Intermediate Retail Partners with focus on overall credit enablement through ge Digital & Partnership channels to grow Consumer Funds, Placement and Lending b
Slide 39: Board & Management
Board & Management
Slide 40: Board of Directors
of Directors : Dr. Kshama Fernandes Ms. Anuradha Rao Mr. Ashutosh Arvind Pednekar Mr. Sandeep Dhar Non-Executive, Non-Independent Non-Executive Non-Executive Non-Executive Director and Vice-Chairperson Non-Independent Director Independent Director Independent Director -------------------------------
Slide 41: Led by experienced leadership team
ed 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 Previou
Slide 42: Sustainability
Sustainability
Slide 43: ESG Framework
Focused Business Model Positively Impacting 129 Mn+ Lives Robust ESG Framework with Effective Tools & Regular DG(1) Alignment Built into the Business Model Monitoring • Committed to responsible financing framework • Adherence to Leapfrog’s ‘Responsible Investment Code’ Group Level • Adoption of a Gr
Slide 44: Empowering community through CSR
wering community through CSR Education Education elementary students in Andhra Pradesh, Karnataka, and Bihar by providing Upgrading rural school infrastructure in Palghar district, Maharashtra. These includes nd training materials to improve basic literacy and numeracy. solar power, digital classroo
Slide 45: Awards and Accolades
s 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
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