Financial Performance Highlights
Quarterly Performance (Q2FY27 vs Q2FY26)
- Net Interest Income: ₹425 crore (32% increase from ₹322 crore)
- Fee & Other Income: ₹28 crore (31% YoY growth)
- Credit Cost: 2.55% (11 bps improvement from 2.66%)
- Profit After Tax: ₹129 crore (41% increase from ₹92 crore)
- Return on Assets: 2.82% (19 bps improvement from 2.63%)
- Return on Equity: 12.4% (229 bps improvement)
- PPoP: ₹286 crore (32% YoY growth, 9% QoQ growth)
- Opex Ratio: 3.6% (stable QoQ)
Half-Yearly Performance (H1FY27 vs H1FY26)
- Net Interest Income: ₹819 crore (32% increase from ₹620 crore)
- Credit Cost: 2.56% (26 bps improvement from 2.82%)
- Profit After Tax: ₹244 crore (41% increase from ₹173 crore)
- Return on Assets: 2.75% (24 bps improvement from 2.51%)
Assets & Business Metrics
Assets Under Management
- Lending AUM: ₹19,003 crore as of September 30, 2026 (34% YoY growth, 13% QoQ growth)
- Direct Lending (D2C) AUM: ₹12,502 crore (66% of overall AUM)
- Private Credit Fund AUM: ₹2,785 crore as of September 30, 2026
- Total Platform Assets: ₹21,790 crore (lending balance sheet + fund AUM)
Business Volumes & Fund Activity
- Gross Transaction Volume for H1FY27: ₹22,303 crore (38% YoY growth)
- Successfully redeemed seventh Private Credit AIF, India Impact Fund, with gross return of 14.6%
- Achieved first close of ₹400 crore for new Diversified Debt Fund with target size of ₹2,000 crore
- Credit Solutions business placement volumes: ₹4,088 crore in Q2FY27 (60% YoY growth)
Asset Quality Indicators
- Gross NPA Ratio: 1.25% as of September 30, 2026
- Net NPA Ratio: 0.51% (flat QoQ)
- Provisioning Coverage Ratio on Stage III assets: 58.9% (improved from 48.5% on June 30, 2026)
Capital Structure & Adequacy
- Capital Adequacy Ratio: 20.8% as of September 30, 2026
- Net Worth: ₹4,213 crore (15% YoY growth)
Management Commentary
Ashish Mehrotra, MD & CEO, commented: "The first half of FY27 reflects continued progress in scaling our diversified financial services business. Our D2C AUM crossed INR 12,500 Crore, with its share of overall AUM increasing to 66%. Our Credit Solutions business continues to build on the momentum with placement volumes grew 60% YoY to INR 4,088 Crore in Q2FY27. These developments underscore our strategic focus on building a capital light credit solutions ecosystem with strong fee-based revenue streams. As we enter the second half of FY27, with the onset of the festive season, our priorities remain centred on sustaining growth across business verticals, expanding fee-led revenue streams and maintaining a cautiously optimistic approach to lending in selected geographies impacted by drought conditions."
Operational Scale
- Nationwide network of 446 branches
- 28 digital live partnerships
- 382 Origination Partners
- Total financing facilitated: Approximately ₹2.7 lakh crore to date
- Impacted over 142 million lives
- Facilitated credit placements of ₹1.32 lakh crore to external investors
Corporate Structure
Northern Arc group comprises:
- Northern Arc Capital Limited (holding and operating company)
- Northern Arc Investment Managers Private Limited (fund management business)
- Northern Arc Securities Private Limited (operates Altifi.ai online bond platform)
- Pragati Finserv Private Limited (exclusive rural distribution arm)
- Northern Arc Foundation (CSR arm)
Investor Contact Information
- Chetan Parmar, Head Investor Relations: chetan.parmar@northernarc.com
- Sudeshna Chakraborty, Head Corporate Communication: sudeshna.chakraborty@northernarc.com