Northern Arc Q4 PAT Soars 251% YoY to ₹133 Cr

Northern Arc Capital reported its highest-ever quarterly profit of ₹133 crores for Q4FY26, with full-year PAT growing 33% YoY to ₹406 crores.
Assets Under Management (AUM) grew 22% YoY to ₹16,594 crores, driven by a 39% surge in the direct-to-customer segment which now constitutes 59% of total AUM.
Credit costs improved significantly to 2.2% in Q4 from 3.5% in Q3, aided by new RBI guidelines on Default Loss Guarantee (FLDG) provisions and improved collections.
Management provided FY27 guidance targeting 22-25% AUM growth and a Return on Assets (ROA) above 3%, with a path to 15-17% ROE in 8-10 quarters.