Summary of Key Information:

Reporting Period: Quarter ended June 30, 2026

Nature of Filing / Announcement: Outcome of Board Meeting - Unaudited Financial Results

Audit Opinion:

Clean Review Opinion - No qualifications or modifications

Key Financial Highlights [Amounts in ₹ lakhs]:

Standalone Results:

Revenue from Operations: ₹77,020.24 (Q1FY26: ₹59,282.77, +30% YoY)

Total Income: ₹77,020.24 (Q1FY26: ₹59,282.77)

Net Profit: ₹12,179.92 (Q1FY26: ₹10,358.41, +18% YoY)

EPS: Basic ₹7.54, Diluted ₹7.44 (Q1FY26: Basic ₹6.42, Diluted ₹6.36)

Consolidated Results:

Revenue from Operations: ₹78,282.26

Total Income: ₹78,282.26

Net Profit: ₹11,410.42 (Attributable to owners: ₹11,432.84)

EPS: Basic ₹7.08, Diluted ₹6.98

Performance Comparison:

Net Interest Income: ₹394 Cr in Q1FY27, up 32% YoY

Pre-provision operating profit: ₹263 Cr in Q1FY27, up 27% YoY

Credit cost: 2.6% in Q1FY27, decreased by 44 bps YoY

Return on Assets: 2.7% for Q1FY27, increased by 29 bps YoY

Return on Equity: 11.5% for Q1FY27, increased by 220 bps YoY

Balance Sheet Position:

Net Worth: ₹4,06,137.27 lakhs (₹4,056 Cr), grew 15% YoY

Capital Adequacy Ratio: 22.71%

Debt-Equity Ratio: 3.05

Total Debts to Total Assets: 0.72

Asset Quality:

Gross Stage 3 Assets Ratio: 1.44%

Net Stage 3 Assets Ratio: 0.53%

Gross NPA: 1.0% (improved by 20 bps QoQ)

Net NPA: 0.5% (improved by 15 bps QoQ)

Provisioning Coverage Ratio on Stage III assets: 48.5%

Segment-wise Performance:

The Company operates primarily in financing activities with no separate reportable segments as per Ind AS 108.

Financing Activity Segment Results:

  • Profit before other income: ₹15,936.71 lakhs
  • Segment Assets: ₹16,99,438.41 lakhs
  • Segment Liabilities: ₹13,02,690.51 lakhs
  • Capital Employed: ₹3,96,747.90 lakhs

Corporate Actions:

  • Allotted 40,500 fully paid-up equity shares of ₹10 each pursuant to Employee Stock Option Schemes 2016 and 2018
  • No dividend declarations, share splits, bonus issues, or buybacks announced

Other Significant Information:

Business Performance Highlights:

  • Lending Assets Under Management: ₹16,855 Cr, grew 26% YoY
  • Direct lending (D2C) AUM: ₹10,766 Cr, grew 51% YoY (64% of total AUM)
  • Performing Credit Fund AUM: ₹2,988 Cr
  • Gross Transaction Volume: ₹8,595 Cr for Q1FY27
  • Branch network: 432 branches nationwide
  • Digital partnerships: 57 partnerships

Strategic Developments:

  • Received SEBI approvals for 2 debt funds
  • ICRA assigned 'Outstanding' ESG Impact Rating with score of 81/100
  • Disposed of shareholding in FinReach Solutions Private Limited (reduced from 24.55% to 11.16%)

Portfolio Reclassification:

  • Reclassified certain loan assets within Loan Against Property portfolio amounting to ₹948.28 lakhs from amortized cost to FVOCI measurement category
  • Recognized fair value gain of ₹50.22 lakhs in other comprehensive income

Provisioning Updates:

  • Maintained additional ECL provision of ₹6,584 lakhs for geopolitical uncertainties affecting unsecured retail lending to MSMEs and individuals
  • RBI amendment directions permitted consideration of DLG benefits for ECL computation, resulting in net decrease in ECL provision by ₹2,900 lakhs

Entities in Consolidation:

Subsidiaries included:

1. Northern Arc Creditech Solutions Private Limited

2. Northern Arc Investment Managers Private Limited

3. Northern Arc Securities Private Limited

4. Pragati Finserv Private Limited

5. Northern Arc Employee Welfare Trust

6. Northern Arc Foundation

Associate included:

1. Northern Arc Emerging Corporates Bond Trust