Northern Arc Capital544260Quarterly results

Record Q2FY27: Lending AUM up 34% YoY to INR 19,003 Crore, PAT up 41% YoY to INR 129 Crore

Q2FY27 results announced.

By ScoutQuest · Tue 3 Nov 2026, 5:41 PM IST · 2 min read

Lending AUM: INR 19,003 Crore, up 34% YoY
Profit After Tax: INR 129 Crore, up 41% YoY
Asset Quality: Gross NPA 1.25%, Net NPA 0.51%

Results at a glance

The company has released a press release on its financial and operational performance for the second quarter and half year ended September 30, 2026, describing Q2FY27 as a record quarter.

The headline numbers

Lending AUM was INR 19,003 Crore as on September 30, 2026, up 34% year on year
Profit after tax for Q2FY27 was INR 129 Crore, up 41% year on year
Net worth was INR 4,213 Crore
Capital adequacy ratio was 20.8%
Gross NPA ratio was 1.25% and the net NPA ratio 0.51%

Where the growth comes from

The release describes a model that combines direct-to-customer (D2C) lending from the company's own balance sheet with a Credit Solutions business that arranges credit for origin partners using external investors' funds as well as its own balance sheet. Management commentary points to the D2C book now forming the larger share of overall AUM and to higher placement volumes in the Credit Solutions business.

Asset quality and capital

The net NPA ratio was described as flat quarter on quarter at 0.51%, while provisioning coverage on Stage III assets improved from the June 30, 2026 level.
Credit cost for the quarter came down compared with a year earlier.
A capital adequacy ratio of 20.8% and net worth of INR 4,213 Crore indicate the cushion available against loan losses and the equity base supporting growth.

Management view

The MD & CEO said the first half reflected continued progress in scaling the business. Priorities for the second half include sustaining growth across business verticals, expanding fee-led revenue streams, and a cautiously optimistic approach to lending in selected geographies affected by drought conditions.

What a retail investor can track

Whether AUM growth keeps pace with the 34% year-on-year rate seen in this quarter
Whether the net NPA ratio stays near 0.51% as the loan book grows
Whether fee-based income scales as the company builds a more capital light model
Whether the drought-affected geographies management flagged influence credit cost in the coming quarters

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