NORTHARC · Northern Arc Capital Limited · NSE · Filed 27 Jul · 1 min read

Northern Arc Capital's Q1 FY27 consolidated net profit rises 41% year-on-year

The NBFC-ML reported consolidated profit after tax of INR 114 crore for the quarter ended 30 June 2026, alongside lending AUM growth and lower NPA ratios.

What was filed

Northern Arc Capital's board met on 27 July 2026 and approved the unaudited standalone and consolidated financial results for the first quarter ended 30 June 2026. Statutory auditor Walker Chandiok & Co LLP conducted a limited review, reporting that nothing came to its attention indicating material misstatement. The company also filed a press release describing what it called its highest first-quarter performance to date.

The quarter in brief

Per the filing, consolidated interest income and profit both rose year-on-year, which the company attributes to expansion of its balance-sheet lending. Northern Arc said its Direct-to-Customer (D2C) portfolio crossed the INR 10,000 crore mark during the quarter, lifting D2C's share of overall lending AUM to 64%. Management flagged improving asset quality, with gross and net NPA ratios both stepping down quarter-on-quarter, and a capital adequacy ratio it characterised as healthy.

The company noted two items of accounting and regulatory context. It maintained an additional Expected Credit Loss (ECL) overlay for unsecured retail lending to MSMEs and individuals in light of macroeconomic uncertainty. It also flagged that a change in RBI directions on Default Loss Guarantee arrangements makes the June 2025 comparative period not strictly comparable — a point a holder reading the year-on-year growth should keep in view.

Balance-sheet and disclosure items

The filing reports a standalone net worth figure, a capital adequacy ratio, and the debt-equity ratio required under the listing rules. The company confirmed it issued no new debentures during the quarter and stated compliance with financial covenants across its listed non-convertible debenture series, with asset cover over listed NCDs disclosed. The consolidated results cover six subsidiaries and one associate; the company noted FinReach ceased to be an associate following a dilution of its stake in May 2025.

Consolidated total income (Q1 FY26): INR 60,769.90 → INR 78,282.26 lakhQ1 FY26 → Q1 FY27+29%^‡
Consolidated profit after tax (Q1 FY26): INR 7,824.82 → INR 11,410.42 lakhQ1 FY26 → Q1 FY27+46%^‡
Standalone profit after tax (Q1 FY26): INR 10,358.41 → INR 12,179.92 lakhQ1 FY26 → Q1 FY27+18%^‡
Net margin ‡: 12.9% → 14.6%Q1 FY26 → Q1 FY27+1.7 pp

Profit after tax (Q1 FY27, press release): INR 114 Cr
Net Interest Income (Q1 FY27): INR 394 Cr
Lending AUM: INR 16,855 Cr
Direct lending (D2C) AUM: INR 10,766 Cr
Gross NPA ratio: 1.0%
Net NPA ratio: 0.5%
Capital adequacy ratio (CRAR): 22.71%
Net worth (standalone): INR 4,06,137.27 lakhs
Debt-equity ratio: 3.05
Additional ECL overlay recognised: INR 6,584 lakhs
Asset cover over listed NCDs: 1.09
Diluted EPS (consolidated, Q1 FY27): INR 6.98

‡ Computed by us from the filing’s own figures — not a company-stated number.

For a holder, this is a scheduled quarterly results filing that shows the direction of the lending book, asset-quality ratios and capital position. The company itself notes that the RBI's change in DLG treatment makes the year-ago comparative not strictly comparable, and that the additional ECL overlay reflects management's caution on unsecured retail lending.