Northern Arc Capital Ltd

- No equity fundraising planned for the next three years; management is comfortable with current capital levels (Page 14). - Debt borrowing will continue to be diversified between offshore and domestic sources in the current financial year (Page 14). - The company aims to reduce bank borrowings from around 70-75% to about 50%, with offshore borrowings at ~30% and the remainder from capital markets (Page 14). - Borrowing cost has been decreasing; incremental cost is around 9.2-9.3%, expected to come down further in FY26 due to floating rate borrowings tied to repo rate (Page 13). - No large lump sum debt maturities expected in the current fiscal; maturities are mostly evenly spread and replaced by incremental borrowings (Page 13).

- Northern Arc Capital has heavily invested in proprietary technology platforms over the years, including Nimbus, nPOS, NuScore, and Altifi, enabling scalable and efficient credit delivery. - These platforms are fully tech-enabled, underwriting about 20,000 to 25,000 customers daily, and have already facilitated over INR1 trillion in credit flow. - The company sees early signs of interest in monetizing these platforms independently, indicating future strategic investments in tech and SaaS solutions. - Plans include launching new credit funds such as the emerging business fund, a climate fund, and India’s first 2X fund to double their assets under management. - There is ongoing investment in scaling the fee franchise from placement and fund management businesses as well as expanding direct-to-customer lending. - Capital adequacy and strong liquidity position provide headroom for growth without immediate concerns on raising capital or large capex on borrowing side.

- Northern Arc Capital expects continued robust growth, especially in the direct-to-customer (D2C) segment which grew 64% CAGR from FY21 to FY25. - MSME lending business is targeted to grow upward of 30% annually, supported by 69+ branches and strong credit standards. - Consumer finance has scaled significantly, with a mature model and expanding partnerships. - The fund management business aims to double its assets under management (INR3,158 crores currently) in the near term, focusing on emerging business, climate, and 2X funds. - Placement business placed over INR12,500 crores volume even in a subdued market, contributing steadily to fee income. - Technology platforms (Nimbus, Altifi) offer additional growth via monetization and new client sign-ups. - Fee income growth anticipated from scaling placement, funds, and SaaS solutions. - Overall, with improving economic momentum and easing interest rates, a cautiously optimistic outlook on sustainable revenue and volume growth is maintained.

- Northern Arc Capital is cautiously optimistic for FY '26, expecting early signs of economic recovery and easing interest rates to enhance credit momentum and growth opportunities. - The company aims to double assets in the fund management and placement businesses, supporting growth in fee income. - Direct-to-customer (D2C) business projected to generate upward of 3.5% return on assets with improving scale efficiencies. - Net interest margin (NIM) expected to expand beyond the current ~10% level as D2C business scales further. - Credit costs in consumer finance are currently higher (~6%) but are expected to stabilize around 2.5-2.6%. - Operating expenses as a percentage of assets are likely to remain range-bound between 3.7%-3.8%, balancing investment and productivity gains. - Overall, the company anticipates a gradual increase in return on assets, targeting 4%+ PBT margins in the near future.

The provided document (Northern Arc Capital Limited Q4FY25 Earnings Call Transcript) does not explicitly mention the current or expected order book or pending orders. The discussion primarily focuses on: - Assets under Management (AUM) standing at INR13,634 crores with 16% YoY growth. - Placement volume of over INR12,393 crores in FY25. - Various loan underwriting platforms processing significant customers daily (20,000-25,000 customers). - Direct-to-customer lending book growing, with MSME and consumer finance segments expanding. - Diversified borrowing mix and funding strategies. - No specific mention of order book or pending orders data. Therefore, no direct data on order book or pending orders is available in the document.