Northern Arc Capital Ltd (NORTHARC)
🎯 Key Takeaways
- Northern Arc Capital is in a phase of controlled growth with improving profitability and asset quality, supported by strong capital adequacy and shareholder-approved strategic flexibility. Management is focused on expanding its Direct-to-Consumer (D2C) lending portfolio while maintaining prudent risk management.
- Revenue grew 5.1% QoQ to ₹780 in Q1FY27.
- ⚠️ 1) Geopolitical and macroeconomic volatility has prompted a significant upward adjustment in ECL provisions (₹6,584 lakhs), which could impact future
- Market Cap
- ₹4,705
- P/E Ratio
- 10.7
- P/B Ratio
- 1.21
- ROE
- 11.3%
- ROCE
- 9.4%
- Debt/Equity
- 3.15
- Promoter
- 0.0%
📖 The Story
Northern Arc Capital is in a phase of controlled growth with improving profitability and asset quality, supported by strong capital adequacy and shareholder-approved strategic flexibility. Management is focused on expanding its Direct-to-Consumer (D2C) lending portfolio while maintaining prudent risk management.
📰 What's Happening
In Q1 FY27, Northern Arc reported 27% YoY growth in Pre-provision Operating Profit, 26% YoY increase in Lending AUM to ₹16,855 crores, and 41% YoY rise in Profit After Tax, as approved in its July 27, 2026 board meeting (Filing: BOARD MEETING | 2026-07-27). The company reclassified loan assets to FVOCI, recognizing a ₹50.22 lakh fair value gain, while increasing ECL provisions by ₹6,584 lakhs due to geopolitical risks. All nine resolutions were passed at the August 18, 2026 AGM (Filing: BOARD MEETING | 2026-08-18), including approval of capital adequacy and enhanced borrowing powers. Shareholders approved the unaudited financials and regulatory compliance disclosures, reinforcing governance continuity.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 627 | 721 | 742 | 780 |
| Operating Profit | 123 | 131 | 178 | 150 |
| OPM % | 19.5% | 18.1% | 24.0% | 19.2% |
| Net Profit | 91 | 102 | 133 | 114 |
| EPS | ₹5.68 | ₹6.24 | ₹8.21 | ₹7.08 |
Revenue has shown a consistent upward trend over the last four quarters, rising from ₹627 crores in September 2025 to ₹780 crores in June 2026, indicating expanding loan book momentum. Operating profit margins remain stable around 19-24%, reflecting operational efficiency, while net profit growth outpaced revenue gains, supported by improved asset quality and controlled provisions.
🔮 Management Outlook & What's Next
Management emphasized continued focus on quality growth in the Direct lending (D2C) portfolio and maintaining strong capital adequacy (22.7% as of March 2026) during the Q1 FY27 results presentation. No formal forward guidance was provided, but the tone was confident in sustaining earnings momentum, supported by regulatory compliance and capital flexibility approved at the AGM.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 161 | 161 | 162 | 162 |
| Reserves | 3,273 | 3,155 | 3,734 | 3,501 |
| Borrowings | 9,860 | 9,271 | 12,258 | 10,331 |
| Total Liabilities | 13,638 | 12,936 | 16,745 | 14,362 |
| Fixed Assets | 40 | 22 | 81 | 36 |
| Investments | 2,052 | 1,766 | 2,943 | 2,409 |
| Total Assets | 13,638 | 12,936 | 16,745 | 14,362 |
The balance sheet shows a steady increase in total assets from ₹13,638 crores (March 2025) to ₹16,745 crores (March 2026), driven by loan book expansion. Borrowings rose to ₹12,258 crores from ₹10,331 crores, reflecting funding for growth, while equity remained stable around ₹162 crores with reserves growing to ₹3,734 crores, indicating retained earnings and capital resilience.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | -1,541 |
| Investing | -851 |
| Financing | +2,292 |
| Net Cash Flow | -100 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 0.0% | 0.0% | 0.0% | 0.0% |
| FII | 7.6% | 7.7% | 7.5% | 8.6% |
| DII | 7.4% | 8.3% | 7.1% | 5.6% |
| Public | 25.4% | 24.8% | 24.6% | 25.6% |
| # Shareholders | 1,04,045 | 1,01,790 | 96,297 | 90,306 |
Institutional investor interest has slightly increased, with FII holding rising from 7.51% in Q4FY26 to 8.64% in Q1FY27, and DII from 7.11% to 5.63% over the same period. The number of public shareholders has declined marginally, but overall shareholder dispersion remains broad. No promoter holding is present, and no recent pledge or sale signals were disclosed.
⚖️ Peer Comparison — Finance
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| BAJFINANCE | 6.13 L Cr | 30.2 | 10.4% | — | 3.82 |
| BAJAJFINSV | 2.80 L Cr | 27.5 | 11.4% | — | 5.50 |
| SHRIRAMFIN | 2.30 L Cr | 17.3 | 11.5% | — | 3.80 |
| ICICIAMC | 1.59 L Cr | 31.8 | 111.5% | — | 0.00 |
| JIOFIN | 1.45 L Cr | 68.4 | 2.3% | — | 0.17 |
| CHOLAFIN | 1.40 L Cr | 24.2 | 9.3% | — | 6.93 |
| TATACAP | 1.39 L Cr | 25.4 | 8.4% | — | 5.28 |
| BAJAJHLDNG | 1.21 L Cr | 13.6 | 12.4% | — | 0.00 |
| MUTHOOTFIN | 1.11 L Cr | 9.8 | 14.4% | — | 3.88 |
| PFC | 1.09 L Cr | 4.2 | 9.8% | — | 7.62 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Geopolitical and macroeconomic volatility has prompted a significant upward adjustment in ECL provisions (₹6,584 lakhs), which could impact future profitability if risks persist. 2) Despite strong growth, the company operates with a high debt-to-equity ratio of 3.15, suggesting elevated financial leverage. 3) The absence of promoter holding may affect governance perception, though institutional ownership is growing steadily.
📋 Recent Filings
- Announcement2026-09-28Northern Arc Capital announced that its trading window closes on October 1, 2026, for 48 hours after the unaudited Q2 and H1 2026 results are filed, p…
- 🔴 Announcement2026-09-18Northern Arc Capital announced its schedule for the September 29, 2026 investor meeting, a group session with analysts and institutional investors con…
- 🔴 Corporate Action2026-09-16Northern Arc Capital approved the allotment of 144,000 equity shares under its ESOP Plan 2016, increasing paid-up capital from Rs. 161.66 crores to Rs…
- 🔴 Insider Trading2026-09-02Northern Arc Capital disclosed an insider trading filing related to SEBI Regulation 29, reporting that Eight Roads Investments Mauritius II sold 94,96…
- 🔴 Corporate Action2026-08-31Northern Arc Capital approved the allotment of 12,500 equity shares of Rs. 10 each under its ESOP Plan 2016, increasing paid-up capital from Rs. 161,6…
- 🔴 Insider Trading2026-08-31Augusta Investments II Pte. Ltd. sold 3,538,129 shares representing 2.19% of Northern Arc Capital's voting capital in an open market transaction on 31…
- 🔴 Corporate Action2026-08-28Northern Arc Capital announced a record date of September 6, 2026 for redemption of its commercial paper (ISIN: INE850M14CM9) maturing September 7, 20…
- Announcement2026-08-24Northern Arc Capital announced its upcoming investor meeting schedule on August 24, 2026, featuring a group session and one-to-one meetings with analy…
- 🟡 Board Meeting2026-08-18Northern Arc Capital Limited held its 18th Annual General Meeting on August 18, 2026 via video conferencing, approving all nine proposed resolutions i…
- Announcement2026-08-14Northern Arc Capital Limited received a penalty of Rs. 6.20 Lakhs from the Reserve Bank of India for failing to disclose all customer complaints and n…
🧠 Analyst's Read
Northern Arc is executing disciplined growth with improving asset quality and capital strength, but investor attention should monitor ECL trends and leverage levels as key near-term risk indicators.
Based on filing content and financial data. Not a recommendation.
Read the full analysis
Quarterly trends, balance sheet, cash flow, peer comparison, and AI insights — sign up free to unlock.
Sign Up Free — Unlock Full Analysis2 free AI queries per day.
Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
📡 Get AI alerts when NORTHARC files new disclosures
Track NORTHARC filings, board meetings, and corporate actions. Free email alerts at 5 PM.
Track NORTHARC — FreeFree account · 2 AI queries/day