Northern Arc Capital logo

Northern Arc Capital

NORTHARC NSE

Key Fundamentals

MicrocapNBFCFinancial Services
Market Cap
₹4,917 Cr
Volatility
Moderate
P/E Ratio
11.22
EBITDA
₹1,458 Cr
Return on Equity
10.35%
Debt to Equity
3.02
Book Value
₹240.97
52W High
₹334
52W Low
₹206

Tapetide Score

Data-driven rating, 0–100. How it works →

Key Insights

Strengths

1
  • 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% lower than 3Y
Net Income Growth
33.95% higher than 3Y
Cash Flow Change
-47.19% lower than 3Y
ROE
18.15% higher than 3Y
ROCE
-1.64% higher than 3Y
EBITDA Margin (Avg.)
3.02% higher than 3Y

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 44d ago
AI 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 anthropic claude-opus-4.6 42d 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

Particulars Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 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
Figures in ₹ Crores

Profit & Loss

Particulars Mar 2017Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
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%
—
Figures in ₹ Crores

Balance Sheet

Particulars Mar 2017Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Cash Flow

Particulars Mar 2017Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Ratios

Particulars Mar 2017Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
13%
9%
7%
5%
11%
13%
15%
11%
11%

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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52 extracted metrics + investor summaries across FY15–FY27.

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Shareholding Pattern

DIIs5.63%Others60.16%FIIs8.64%Public25.57%As ofJun 2026

Documents

Frequently Asked Questions about Northern Arc Capital

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 trades as NORTHARC on the NSE and under code 544260 on the BSE.
Which sector does Northern Arc Capital Ltd belong to?
Northern Arc Capital Ltd is classified under the Financial Services sector, in the NBFC industry.
What is the market capitalisation of Northern Arc Capital Ltd?
Northern Arc Capital Ltd has a market capitalisation of ₹4,917 Cr, which places it in the Small Cap band.
What is the PE ratio of Northern Arc Capital Ltd?
Northern Arc Capital Ltd trades at a PE ratio of 11.22, against a book value of ₹240.97 per share.
What is the 52-week high and low of Northern Arc Capital Ltd?
Over the last 52 weeks Northern Arc Capital Ltd has traded between ₹206 and ₹334.
What is the Return on Equity (ROE) of Northern Arc Capital Ltd?
Northern Arc Capital Ltd reported a return on equity of 10.35%. Its debt-to-equity ratio is 3.02.

Company Information

Founded in 2009, Northern Arc Capital Limited offers retail loans to underserved households and businesses in India.[1]

Website northernarc.com
Listed 2024-09-24
Face Value ₹ 10
Issued Size 16,15,71,875

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