Northern Arc Capital Ltd
NORTHARC NSE
Northern Arc Capital Ltd
Financial ServicesNSE: NORTHARC BSE: 544260 NBFC
Key Fundamentals
MicrocapNBFCFinancial ServicesMarket Cap
₹4,578 Cr
Volatility
Moderate
P/E Ratio
10.38
EBITDA
₹1,458 Cr
Return on Equity
10.35%
Debt to Equity
3.02
Book Value
₹240.99
52W High
₹334
52W Low
₹206
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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30 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
2- Stock is trading at 1.18 times its book value
- Company has delivered good profit growth of 43.2% CAGR over last 5 years
Weaknesses
3- Though the company is reporting repeated profits, it is not paying out dividend
- Company has low interest coverage ratio.
- Company has a low return on equity of 11.9% over last 3 years.
Growth Rate
Revenue Growth
14.63% ↗
Net Income Growth
33.95% ↗
Cash Flow Change
-47.19% ↘
ROE
18.15% ↗
ROCE
-1.64% ↘
EBITDA Margin (Avg.)
3.02% ↗
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 11d agoAI opinion · based on fundamentals
Risk medium
Northern Arc Capital is a mid-cap NBFC with a market cap of ~₹4,700 Cr, trading at a PE of 10.5x and 1.19x book value. The company has delivered strong 5-year profit CAGR of 43% and revenue CAGR of 32%, with lending AUM growing to ₹15,121 Cr (Q3 FY26) while maintaining GNPA at sub-1% levels and capital adequacy above 24%.
Bull Case 8
- Strong 5-year compounded profit growth of 43% CAGR demonstrates consistent earnings expansion
- Revenue growth remains healthy at 27% CAGR over 3 years and 21% TTM, indicating sustained business momentum
- Lending AUM grew 23% YoY to ₹15,121 Cr as of Q3 FY26, with D2C lending share rising to 56% improving margins
- Asset quality remains controlled with GNPA at 0.93% and NNPA at 0.36% as of March 2025, well below NBFC sector averages
- Capital adequacy ratio of 24.7% (March 2025) provides substantial buffer above RBI regulatory minimum of 15%
- Stock trades at just 1.19x book value — modest for a growing NBFC with 43% profit CAGR — and PE of 10.5x is below many financial services peers
- Net worth grew 48% YoY to ₹3,434 Cr in FY25, strengthening the balance sheet for future growth
- Stock has returned 22% in the last 1 year, reflecting market recognition of improving fundamentals
Bear Case 8
- Return on equity is low at 11-12% over the last 3 years, below the 15%+ typically expected from well-run NBFCs
- Company has low interest coverage ratio, indicating thin margin of safety between earnings and interest obligations for a leveraged NBFC
- Zero dividend payout despite repeated profitability suggests capital retention needs or limited free cash generation
- GNPA has shown an uptick from 0.90% (Dec 2024) to 1.13% (June 2025), indicating potential asset quality stress in recent quarters
- Being a wholesale-lending focused NBFC, the company faces concentration risk and is dependent on the credit quality of partner institutions
- TTM profit growth of 50% is significantly higher than 3-year CAGR of 21%, raising questions about sustainability of recent earnings trajectory
- As a relatively recent listed entity (IPO in 2024), the stock lacks a long trading history and 5/10-year stock CAGR data is unavailable
- Capital adequacy declined from 26.1% (Dec 2024) to 24.7% (March 2025), indicating rapid balance sheet growth may continue to consume capital buffers
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 9d ago Positives 2
- Q1 profit surges 41% YoY Jul 27
Northern Arc reported record Q1FY27 standalone profit of ₹114 crore, up 41% YoY, with 32% growth in net interest income and GNPA improving to 1.0%.
- BRSR filed for FY 2025-26 Jul 25
Northern Arc submitted its Business Responsibility & Sustainability Report disclosing ESG metrics and CSR spending of INR 7.53 crore, signaling governance transparency.
Neutral 3
- AGM set for Aug 18 Jul 25
18th AGM scheduled for August 18, 2026 with votes on ₹5,000 crore NCD issuance, enhanced borrowing limits, and executive remuneration revisions.
- Q1FY27 earnings call hosted Jul 21
Earnings call held July 27, 2026 at 18:30 IST led by MD & CEO Ashish Mehrotra to discuss Q1FY27 performance.
- Joint statutory auditors appointed Jul 10
Board appointed R. Subramaniyan and Company LLP as Joint Statutory Auditors for three years and allotted 39,000 ESOP shares.
TL;DR: Northern Arc Capital delivered a strong Q1FY27 with 41% profit growth, healthy NII expansion, and improving asset quality at 1.0% GNPA. No material headwinds surfaced in recent news. The company is reinforcing governance through BRSR disclosure and planning ₹5,000 crore in NCD issuance to fund future growth. The trend is clearly improving with robust earnings momentum heading into FY27.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 401 | 437 | 492 | 564 | 578 | 585 | 576 | 603 | 605 | 627 | 721 | 742 | 780 |
| Expenses | 126 | 154 | 200 | 242 | 246 | 244 | 267 | 367 | 283 | 295 | 354 | 326 | 366 |
| Financing Profit | 111 | 108 | 108 | 118 | 123 | 136 | 95 | 36 | 106 | 125 | 136 | 177 | 154 |
| Fin. Margin % | 28% | 25% | 22% | 21% | 21% | 23% | 17% | 6% | 18% | 20% | 19% | 24% | 20% |
| Other Income | 4 | 3 | 5 | 1 | 5 | 1 | 5 | 4 | 2 | 1 | 4 | 3 | 3 |
| Interest | 164 | 174 | 184 | 204 | 209 | 205 | 214 | 200 | 216 | 208 | 231 | 239 | 260 |
| Depreciation | 3 | 4 | 5 | 5 | 4 | 3 | 6 | 5 | 4 | 5 | 5 | 5 | 4 |
| PBT | 112 | 107 | 108 | 114 | 123 | 134 | 94 | 35 | 104 | 121 | 135 | 176 | 153 |
| Tax % | 19% | 26% | 24% | 25% | 24% | 28% | 22% | -10% | 25% | 25% | 24% | 24% | 25% |
| Net Profit | 91 | 79 | 82 | 86 | 94 | 96 | 73 | 38 | 78 | 91 | 102 | 133 | 114 |
| EPS in Rs | 9.85 | 8.59 | 8.45 | 9.94 | 10.45 | 6.05 | 4.69 | 2.34 | 5.02 | 5.68 | 6.24 | 8.2 | 7.07 |
Profit & Loss
| Mar 2017 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 370 | 602 | 634 | 682 | 911 | 1,306 | 1,891 | 2,344 | 2,691 | 2,870 |
| Expenses | 96 | 135 | 174 | 255 | 247 | 419 | 739 | 1,120 | 1,247 | 1,341 |
| Financing Profit | 98 | 164 | 151 | 103 | 252 | 329 | 422 | 392 | 545 | 591 |
| Fin. Margin % | 26% | 27% | 24% | 15% | 28% | 25% | 22% | 17% | 20% | 21% |
| Other Income | 0 | 16 | 0 | 3 | 6 | 5 | 15 | 11 | 10 | 12 |
| Interest | 176 | 303 | 310 | 324 | 411 | 559 | 730 | 832 | 899 | 938 |
| Depreciation | 1 | 5 | 7 | 7 | 10 | 12 | 17 | 18 | 19 | 19 |
| PBT | 97 | 175 | 144 | 100 | 248 | 321 | 420 | 386 | 536 | 584 |
| Tax % | 34% | 34% | 29% | 23% | 27% | 25% | 24% | 22% | 25% | — |
| Net Profit | 64 | 115 | 103 | 77 | 182 | 242 | 318 | 301 | 404 | 439 |
| EPS in Rs | 8.14 | 12.65 | 10.61 | 7.68 | 19.4 | 25.83 | 34.49 | 18.87 | 25.13 | 27.19 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | — |
Balance Sheet
| Mar 2017 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 78 | 78 | 87 | 88 | 89 | 89 | 89 | 161 | 162 |
| Reserves | 397 | 1,014 | 1,336 | 1,412 | 1,568 | 1,784 | 2,142 | 3,273 | 3,734 |
| Borrowing | 2,363 | 3,001 | 3,004 | 4,015 | 6,066 | 7,117 | 9,130 | 9,860 | 12,258 |
| Other Liabilities | 106 | 186 | 170 | 182 | 251 | 381 | 345 | 344 | 591 |
| Total Liabilities | 2,945 | 4,279 | 4,597 | 5,696 | 7,973 | 9,371 | 11,707 | 13,638 | 16,745 |
| Fixed Assets | 5 | 5 | 25 | 22 | 24 | 51 | 57 | 76 | 65 |
| CWIP | 0 | 3 | 1 | 1 | 0 | 1 | 2 | 6 | 16 |
| Investments | 1,150 | 1,193 | 1,171 | 1,383 | 1,766 | 1,790 | 1,785 | 2,052 | 2,943 |
| Other Assets | 1,789 | 3,077 | 3,400 | 4,291 | 6,183 | 7,529 | 9,863 | 11,504 | 13,720 |
| Total Assets | 2,945 | 4,279 | 4,597 | 5,696 | 7,973 | 9,371 | 11,707 | 13,638 | 16,745 |
Cash Flow
| Mar 2017 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|
| Operating | — | -336 | -54 | -711 | -1,326 | -1,296 | -2,134 | -1,047 | -1,541 |
| Investing | — | -36 | -26 | -201 | -386 | -115 | 36 | -388 | -851 |
| Financing | — | 375 | 223 | 977 | 2,028 | 928 | 2,045 | 1,586 | 2,292 |
| Net Cash Flow | — | 4 | 142 | 65 | 317 | -483 | -53 | 151 | -100 |
| Free Cash Flow | — | -343 | -65 | -715 | -1,338 | -1,285 | -2,148 | -1,065 | -1,556 |
| CFO/OP | — | -59 | 1 | -158 | -191 | -136 | -177 | -77 | -95 |
Ratios
| Mar 2017 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|
| ROE % | 13% | 9% | 7% | 5% | 11% | 13% | 15% | 11% | 11% |
Documents
1
Announcement under Regulation 30 (LODR)-Investor Presentation
8 May - Investor Presentation for the Year ended March 31, 2026 8 May - Investor Presentation for the Year ended March 31, 2026
2
Audited Results For The Year Ended March 31, 2026
8 May - Board approved audited FY26 results and NCD issuance up to Rs 5,000 crore, subject to AGM approval. 8 May - Board approved audited FY26 results and NCD issuance up to Rs 5,000 crore, subject to AGM approval.
3
Statement Of Deviation Or Variation On The Utilization Of Proceeds Raised Through Issuance Of Equity Shares By Way Of Public Issue
8 May - No deviation in IPO proceeds utilisation for quarter ended March 31, 2026. 8 May - No deviation in IPO proceeds utilisation for quarter ended March 31, 2026.
4
Compliances-Reg. 54 - Asset Cover details
8 May - Security cover certificate filed for listed NCDs as of March 31, 2026; cover up to 114%. 8 May - Security cover certificate filed for listed NCDs as of March 31, 2026; cover up to 114%.
5
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome
8 May - Audio recording of Q4 and FY2026 earnings conference call hosted on company website. 8 May - Audio recording of Q4 and FY2026 earnings conference call hosted on company website.
Frequently Asked Questions about Northern Arc Capital Ltd
What does Northern Arc Capital Ltd do?
Founded in 2009, Northern Arc Capital Limited offers retail loans to underserved households and businesses in India.[1]
Where is Northern Arc Capital Ltd (NORTHARC) listed?
Northern Arc Capital Ltd is listed on the Indian stock exchanges. It is listed on NSE: NORTHARC and BSE: 544260. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Northern Arc Capital Ltd belong to?
Northern Arc Capital Ltd operates in the Financial Services sector within the NBFC industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Northern Arc Capital Ltd?
Northern Arc Capital Ltd has a market capitalisation of approximately ₹4578.48 Cr. Based on this, it is classified as a Small Cap stock.
What is the PE ratio of Northern Arc Capital Ltd?
The Price-to-Earnings (PE) ratio of Northern Arc Capital Ltd is 10.38. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Northern Arc Capital Ltd?
Over the past 52 weeks, Northern Arc Capital Ltd has traded between a low of ₹206 and a high of ₹334. This range helps investors understand the stock's price volatility and recent trading levels.
What is the Return on Equity (ROE) of Northern Arc Capital Ltd?
Northern Arc Capital Ltd has a Return on Equity (ROE) of 10.35%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Northern Arc Capital Ltd on Tapetide?
On Tapetide, you can view Northern Arc Capital Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.
Company Information
Founded in 2009, Northern Arc Capital Limited offers retail loans to underserved households and businesses in India.[1]