Any current/future new fundraising through debt or equity?

Northern Arc Capital has consciously reduced reliance on bank borrowings, from 65% in March 2025 to around 52% in March 2026. They are focusing on diversifying their funding sources through capital market issuances and offshore borrowings, both predominantly at fixed interest rates. The company has been actively conducting securitization, especially PTC transactions, which forms a key part of their liability diversification strategy. Liquidity remains comfortable with a surplus of about INR 1,250 crores in cash/bank balances and undrawn sanctions. No explicit mention of upcoming new fundraisin

Future growth expectations in sales/revenue/volumes?

Northern Arc Capital expects loan growth of 22% to 25% for FY27, approximately three times GDP growth. Direct-to-customer (D2C) business is a key growth driver, currently contributing 59% of AUM and growing at 39% YoY. Consumer finance AUM has grown to over INR 5,000 crores with risk-adjusted yield targeted around 15%. MSME lending is growing rapidly, with a 43% YoY increase to INR 3,691 crores, supported by branch expansion and improved productivity. Continued focus on disciplined execution, risk management, and investment in technology and collections to support scalable growth. Di

Future growth expectations in earnings/operating earnings/profits/EPS?

Northern Arc Capital expects loan growth of 22%-25% in FY27, approximately three times GDP growth, reflecting disciplined execution and risk focus. Target return on assets (ROA) is above 3% going forward. Aim to achieve mid to late teens return on equity (ROE) of approximately 15%-17% within 8-10 quarters (about 2 to 2.5 years). The direct-to-customer (D2C) business, which contributed 59% of AUM, is expected to drive robust growth with calibrated risk management. Profit after tax (PAT) crossed INR 400 crores in FY26 with 33% YoY growth; Q4FY26 PAT at INR 133 crores increased 251% YoY. Operatin

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Northern Arc Capital LtdQ1 FY26Finance

Northern Arc Capital Ltd Q1 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹291P/E: 11.2Market Cap: ₹4.5K CrSector: Finance

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Northern Arc Capital expects loan growth of 22% to 25% for FY27, approximately three times GDP growth.
→Direct-to-customer (D2C) business is a key growth driver, currently contributing 59% of AUM and growing at 39% YoY.
→Consumer finance AUM has grown to over INR 5,000 crores with risk-adjusted yield targeted around 15%.
→MSME lending is growing rapidly, with a 43% YoY increase to INR 3,691 crores, supported by branch expansion and improved productivity.
→Continued focus on disciplined execution, risk management, and investment in technology and collections to support scalable growth.
→Diversification in borrowing sources and a strong capital adequacy ratio of 22.6% provide headroom for balance sheet growth over 2-3 years.
→Overall, Northern Arc aims to maintain strong growth momentum with calibrated risk, targeting improved ROA of 3+% and mid to late teens ROE over next 8-10 quarters.

Margin guidance

Category 3

→Northern Arc Capital expects loan growth of 22%-25% in FY27, approximately three times GDP growth, reflecting disciplined execution and risk focus.
→Target return on assets (ROA) is above 3% going forward.
→Aim to achieve mid to late teens return on equity (ROE) of approximately 15%-17% within 8-10 quarters (about 2 to 2.5 years).
→The direct-to-customer (D2C) business, which contributed 59% of AUM, is expected to drive robust growth with calibrated risk management.
→Profit after tax (PAT) crossed INR 400 crores in FY26 with 33% YoY growth; Q4FY26 PAT at INR 133 crores increased 251% YoY.
→Operating profit growth was 21% YoY in FY26, with continuous improvement expected due to better NIMs and cost control.
→Credit cost is expected to stabilize around 2.7%-2.8%, supporting profitability.
→Overall, Northern Arc is confident of sustaining strong earnings growth through risk-calibrated execution and portfolio quality management.

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Fundraise plans

Yes

→Northern Arc Capital has consciously reduced reliance on bank borrowings, from 65% in March 2025 to around 52% in March 2026.
→They are focusing on diversifying their funding sources through capital market issuances and offshore borrowings, both predominantly at fixed interest rates.
→The company has been actively conducting securitization, especially PTC transactions, which forms a key part of their liability diversification strategy.
→Liquidity remains comfortable with a surplus of about INR 1,250 crores in cash/bank balances and undrawn sanctions.
→No explicit mention of upcoming new fundraising through equity or additional debt was made, but the capital adequacy at 22.6% provides ample headroom to grow the balance sheet over the next 2-3 years.
→The focus remains on long-term and diversified funding aligned with AUM growth plans and market conditions.

Order book

The provided document does not explicitly mention Northern Arc Capital Limited's current or expected order book or pending orders. It mainly focuses on financial performance, portfolio mix, borrowing strategy, credit cost, risk management, product offerings, and growth outlook. Specific details on order books or pending orders are not included within the available pages. If you need information on other operational metrics or financials, I can assist with those.

Capex plans

Yes

The document does not explicitly mention any specific current or future capex, capital investment, or strategic investment initiatives planned by Northern Arc Capital Limited. However, the following related points can be inferred: - Continued investment in building capabilities for collections, risk management, and AI to improve scalability and portfolio quality. - Investment in technology and risk capabilities, which are core to their business strategy. - Expansion of physical footprint, including addition of 17 new branches during FY26, indicating ongoing capital deployment in branch network. - Focus on building infrastructure, talent, and distribution for MSME segment to capture growth opportunities. - Strategic diversification of funding sources, including increased capital market issuances and offshore borrowings. No direct mention of large capital expenditure projects or strategic investments beyond these operational and growth initiatives is found on page 16 or surrounding pages.

How does Northern Arc Capital Ltd rank vs peers in Finance?

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