Northern Arc Capital Ltd(NORTHARC)

NSE: NORTHARCBSE: 544260

₹ 247-4.17%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 3,997 crWebsite: www.northernarc.comUpdated: 24 Oct 2026

About

Northern Arc Capital is an Indian NBFC that lends directly to retail borrowers (MSME, consumer finance, rural/microfinance) and arranges debt for other lenders through its credit solutions platform and fund management arm. Total lending AUM reached INR 16,855 Cr in Q1 FY27, growing 26% YoY and outpacing industry growth.^[1][2][3]

Loan book mix

Consumer Finance AUM: INR 5,802 Cr in Q1 FY27, with 70% repeat customers as of FY26.^[1][2]
MSME AUM: INR 3,761 Cr in Q1 FY27, +40% YoY; average ticket size INR 11 - 15 lakh, average LTV 48%, 100% registered mortgage structure.^[1][4]
Rural Finance (microfinance) AUM: INR 1,203 Cr in Q1 FY27, +26% YoY and +19% QoQ - first growth after several quarters of deliberate consolidation; 94% of MFI book covered under CGFMU.^[1]
Fund Management AUM: INR 2,988 Cr in Q1 FY27; SEBI approved two new performing credit funds in Q1 FY27: a diversified debt fund (INR 2,000 Cr with INR 500 Cr greenshoe) and Northern Arc Savings Plus Fund.^[1]

Distribution and operations

Branch network: 430 branches as of Q1 FY27; management plans to add 50 - 60 more branches in FY27.^[1]
MSME branches span 7 states; Rural Finance operates 342 branches (after 64 added in Q4 FY26) with over 1,900 employees.^[2][5]
AltiFi retail bond platform crossed 1 lakh subscribers in Q1 FY27; platform volumes more than doubled YoY from INR 146 Cr to INR 315 Cr.^[1]

Key operating metrics

NIM: 9.3% in Q1 FY27, +44 bps YoY, recovering from 9.9% peak in Q3 FY26; management guides ~10% by end of FY27.^[1][4]
Cost of funds: 8.46% in Q1 FY27, down 50 bps vs Q1 FY26; bank borrowings share deliberately reduced from ~65% (Mar-25) to ~52% (Mar-26) to diversify liability mix.^[1][2]
Credit cost: 2.6% in Q1 FY27, down from 3.2% in FY25 and 2.8% in FY26; FY27 guidance refined to 2.6% - 2.7%.^[1][2]
GNPA: 1.0%; Net NPA: 0.5% in Q1 FY27.^[1]

Funding and liabilities

Fixed-rate instrument share (NCDs, ECBs) rose from ~30% to ~40% of borrowings between Mar-25 and Mar-26 to lock in rates; bank borrowing share fell from ~65% to ~52% over the same period.^[2]
Management stated no equity raise is expected for at least the next two years; internal accruals are expected to fund 22 - 23% AUM growth at 3.1x D/E.^[1]

Expansion plans

50 - 60 new branches planned in FY27 on top of the 430-branch network, with focus on higher productivity per branch and AI-enabled LAP journeys targeting 90% turnaround within 3 days.^[1]
Affordable housing product launch planned once the MSME branch network matures; board approval is already in place.^[1][2]
Two SEBI-approved performing credit funds (diversified debt INR 2,000 Cr and Savings Plus Fund) to be launched in FY27, with a pipeline of further thematic funds indicated.^[1]

Recent developments

Q1 FY27 (Apr - Jun 2026): Rural Finance posted its highest-ever quarterly disbursement of INR 328 Cr, surpassing the prior record of INR 305 Cr set in Q4 FY26.^[1][2]
Q1 FY27: SEBI approved two new performing credit funds - a diversified debt fund (target corpus INR 2,000 Cr with INR 500 Cr greenshoe) and the Northern Arc Savings Plus Fund.^[1]
FY26: Liability diversification accelerated - bank borrowing share cut from ~65% to ~52% and fixed-rate share raised from ~30% to ~40% of total borrowings.^[2]
~250 sales staff added in Q1 FY27 alone as Northern Arc accelerates branch productivity investments ahead of the planned 50 - 60 branch additions in FY27.^[1]

Market Cap

₹3,997 Cr

High / Low

₹334 / 206

Stock P/E

9.1

Price / Book

1.0

Book Value

₹241

EPS

₹25.1

No. of Shares

16.16 Cr

ROE

11.1%

Debt / Equity

3.15

Sales

₹2,690 Cr

Net Profit

₹404 Cr

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