Northern Arc Capital Sees Strong FY26 Performance

Northern Arc Capital announced strong financial results for fiscal year 2026, with Profit After Tax (PAT) reaching ₹406 crore. This represents a robust 33% increase year-on-year. The company's fourth quarter (Q4 FY26) performance was particularly strong, with PAT surging 251% to ₹133 crore.

Financial Highlights

The company announced its audited financial results for the fiscal year and fourth quarter ended March 31, 2026. For the full fiscal year 2026, consolidated Profit After Tax (PAT) stood at ₹406 crore, up 33% from the previous year. Net Interest Income (NII) for FY26 grew 20% to ₹1,377 crore, with Net Revenue increasing 19% to ₹1,484 crore. In the fourth quarter (Q4 FY26), PAT accelerated sharply, jumping 251% to ₹133 crore. Q4 NII grew 21% to ₹387 crore, and Net Revenue rose 18% to ₹414 crore.

Drivers of Growth

This strong PAT growth reflects effective operational management and successful market penetration. Key metrics driving this performance include Lending Assets Under Management (AUM), which reached ₹16,594 crore as of March 2026. The company also saw a significant 39% year-on-year increase in direct customers, expanding its base to over 29.5 lakh. These figures highlight Northern Arc Capital's expanding reach and customer base in the digital lending space.

Company Overview

Northern Arc Capital is a leading digital lending platform and Non-Banking Financial Company (NBFC) in India. The company focuses on providing credit solutions to underserved segments, including MSMEs and individuals, by leveraging technology. It has consistently expanded its digital lending capabilities and technology infrastructure to enhance customer reach over recent years.

Additional Financial Metrics

Net Interest Margin (NIM) for FY26 was reported at 9.4%.

Risk Factors

The company's filing update did not specify any particular risks to watch.

Industry Context

Northern Arc Capital's strong profit growth in FY26 places it within a competitive landscape. Peers such as Poonawalla Fincorp and IIFL Finance are also focused on expanding their loan books and improving profitability within the NBFC and digital lending sectors.

Future Focus

Guidance was provided during the earnings conference call on Friday, May 08, 2026. Investors will monitor trends in Net Interest Margins and the company's ongoing expansion plans for customer acquisition and AUM growth.