Northern Arc Capital Ltd. · NSE:NORTHARC
Northern Arc Capital — Q2 FY27 Earnings Presentation
47 slides from Northern Arc Capital's earnings presentation, Nov 3, 2026
Slide 1: Exchange filing letter: Investor Presentation Q2FY27
♦ T NeRTHERN ARC Ref No.: NACL/03/NOV/2026-27 November 03, 2026 To, To, BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai- 400001 Bandra (E) Scrip Code: 544260 Mumbai - 400 051 Scrip Symbol: NORTHAR
Slide 2: Investor Presentation Q2FY27
Investor Presentation Q2FY27 Financing the Retail Credit Needs of India’s AA-(Stable) Outstanding Underserved Households & Businesses across By ICRA Limited & India Ratings ICRA ESG Ratings focused sectors 1
Slide 3: Disclaimer
Disclaimer "This presentation and accompanying slides (the “Presentation”) has been prepared by Northern Arc Capital Limited (“Company”) to be presented during the analyst call as required under Regulation 46 (2)(o) of the SEBI (LODR) Regulations, 2015, and is not for release, distribution or public
Slide 4: Content
Content… 01 Business Overview 02 Direct to Customer 03 Credit Solutions 04 Risk Management Robust Technology Strong Liability 05 Stack 06 Franchise Board & 07 Financials 08 Management Brand 09 Sustainability 10 Engagement 3
Slide 5: Business Overview
Business Overview 4
Slide 6: Key Highlights – Q2FY27
Key Highlights – Q2FY27 Lending AUM Direct to Customer Mix Net Interest Income INR 19,003 66% INR 425 Cr +34% +13% +1,202 bps +191 bps +32% +8% PPoP Credit Cost Net NPA INR 286 Cr 2.6% 0.5% +32% +9% -10 bps -5 bps -4 bps +1 bps PAT RoA RoE INR 129 Cr 2.8% 12.4% +41% +13% +19 bps +12 bps +229 bps +88
Slide 7: Key Highlights – H1FY27
Key Highlights – H1FY27 Gross Transaction Volume Branches Net Interest Income INR 22,303 446 INR 819 Cr +38% +74 +32% PPOP Credit Cost PAT INR 549 Cr 2.6% INR 244 Cr +30% -26 bps +41% RoA RoE Book Value per share 2.75% 12.0% 260 +24 bps +226 bps +15% YoY growth 6
Slide 8: Executive Summary – Q2FY27
Executive Summary – Q2FY27 Total AUM grew by 34% YoY to INR 19,003 Cr Direct customer base surpassed 30 lakh, with AUM of INR 12,502 Cr & D2C contribution of 66% New Altifi.ai website launched Reported record quarterly profit after tax in history of Northern Arc Successfully redeemed seventh Private
Slide 9: Demonstrating growth in AUM and profitability across business cycles
Demonstrating growth in AUM and profitability across business cycles Asset under management INR crore MFI overleverage Demonetization IL&FS Crisis Covid Pandemic stress 19,003 16,594 13,634 14,166 11,710 9,009 7,108 3,883 4,342 5,221 1,019 2,734 3,664 1,655 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20
Slide 10: Northern Arc: Dual engine credit ecosystem
Northern Arc : Dual engine credit ecosystem Financing the Credit Needs of India’s Underserved Households & Businesses through two-pronged strategy Engine 1 Engine 2 Credit Solution for Originator Partners Direct to Customer Lending Where the credit know-how is built Leveraging learnings from Credit
Slide 11: Direct to Customers Lending
Direct to Customers Lending 10
Slide 12: Direct to Customers Lending: Built a strong retail engine
Direct to Customers Lending: Built a strong retail engine Northern Arc Customer Base Leveraged learnings from the Credit Solution business to build : • A strong D2C engine MSME Consumer Finance Rural Finance • A robust underwriting and # Customers 60,000+ ~27,50,000 5,00,000+ product program Direct
Slide 13: Growth: Building granular book with D2C AUM increasing to 66%
Growth : Building granular book with D2C AUM increasing to 66% D2C AUM Growth Aligned with Stated Strategy INR crore MSME Consumer Rural 12,502 Multi-channel Distribution Model 1,350 9,792 446 28 1,009 Branches Digital Partners 7,627 (Active) 6,912 7,064 910 1,100 5,833 5,092 Backed by robust Underw
Slide 14: MSME – Fulfilling business credit needs through Phygital model
MSME – Fulfilling business credit needs through Phygital model Building strong footprint to scale granular portfolio Sustained Growth Momentum in MSME AUM INR crore CAGR 45% 102 Branches 1 Added 12 branches in Q2FY27 11 4,240 13 13 88 8 States & 1 UT 3,691 3,065 3 3 2,574 13 2,021 13 740+ Employees
Slide 15: Consumer Finance – Sustained Momentum in Consumption Demand
Consumer Finance – Sustained Momentum in Consumption Demand Assets under Management 96% of customers with bureau score 700 & above INR crore 6,912 169 1% 3% < 699 CAGR 77% 700-749 5,092 40% 103 56% > 750 13 7 NTC 3,652 2 3,390 103 11 67 6,743 7 2,300 4,989 16 # Customers (‘000) 21 3,549 3,323 1,091
Slide 16: Rural Finance – Gaining AUM momentum following conscious calibration
Rural Finance – Gaining AUM momentum following a period of conscious calibration Pan India Presence Disbursements continued to maintain strong momentum INR crore 500 Disbursement Collection Efficiency (X-Bucket) 101.0% 450 99.6% 99.6% 99.7% 100.0% 400 99.4% 344 Branches 99.1% 350 98.7% 98.6% 99.0% 3
Slide 17: Credit Solutions
Credit Solutions _ ee
Slide 18: Credit Solutions – Powering Originator Partners Across the Full Credit Continuum
Credit Solutions – Powering Originator Partners Across the Full Credit Continuum Loan to Originate (LTO) Altifi • AUM of Rs. 6,501 Cr • OBPP licensed platform • 110%-120% collateral of retail loans • 110K+ registered users • 382 Originator Partners • Bonds, FDs, MF & Insurance Distribution Lending p
Slide 19: Credit Solutions – Focus on overall credit fulfilment of Originator Partners
Credit Solutions – Focus on overall credit fulfilment of Originator Partners Gross Transaction Volume Originator Partners INR crore Disbursements Credit Enabled 12,535 9,945 66% 77% 368 382 350 328 278 298 34% 23% H1FY26 H1FY27 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Sep-26 93% of Partners are BBB & abov
Slide 20: IR Lending – Judicious use of balance sheet to foster relationships
IR Lending – Judicious use of balance sheet to foster relationships Calibration in Lending AUM with more focus on Fee based businesses Building diversified Sector mix INR crore Sep-26 6,549 6,501 3%1% 14% 36% MSME MFI Consumer Finance 23% VF AHF Agri & Others 23% Sep-25 Sep-26 Lending AUM - by Produ
Slide 21: Risk free, fee-based businesses
Risk free, fee-based businesses Placement volumes seeing good traction INR 5,699 Cr SEBI licensed, Retail Bond Diversified Sector mix Investor mix platform H1FY27 H1FY27 3% 10% 6% Private Registered Users MSME Banks 17% Consumer NBFC 1,13,717 24% 94,875 MFI PSUs 19% 53% 50% Vehicle 5% Offshore AHF 1
Slide 22: Risk Management
Risk Management 21
Slide 23: Robust Risk Management Framework
Robust Risk Management Framework Robust risk management framework based on sector expertise, ground-level insights, extensive data analytics and proprietary risk models Manage organizational risks Through Using our Suite of Risk Analysis Tools Deep Domain Knowledge and Qualitative Field-Level Insigh
Slide 24: Deep focus on collections
Deep focus on collections Intelligent, Multi-Tiered, Digital Collections Architecture 1 SEGMENT 2 STRATEGISE 3 ORCHESTRATE 4 COLLECT 5 OPTIMISE HIGH MEDIUM LOW Risk classification › DPD and risk-based rules › Digital coms, dialer, agentic bot, field and › Payment links, aggregator and LMS › Learn be
Slide 25: Sector wise asset quality – Remains stable amid macroeconomic uncertainty
Sector wise asset quality – Remains stable amid macroeconomic uncertainty NNPA (%) Credit Cost INR Crores / % AUM Jun-26 Sep-26 H1FY27 FY26 FY25 Intermediate 6,501 0.2% 0.3% 1.0% 1.1% 1.5% Retail MSME 4,240 1.8% 1.7% 2.9% 3.1% 2.4% Consumer 6,912 0.1% 0.1% 3.8% 4.9% 6.0% Rural 1,350 0.01% 0.01% 4.0%
Slide 26: Portfolio Quality
Portfolio Quality INR ECL % : provision coverage for each Assets under Management Assets under Management (%) ECL : Expected Credit Loss crore/% stage By Sep’25 Dec’25 Mar’26 Jun’26 Sep’26 Sep’25 Dec’25 Mar’26 Jun’26 Sep’26 Sep’25 Dec’25 Mar’26 Jun’26 Sep’26 Sep’25 Dec’25 Mar’26 Jun’26 Sep’26 Stagin
Slide 27: Robust Technology Stack
Robust Technology Stack 26
Slide 28: nPOS – Digital Lending proprietary platform
nPOS – Digital Lending proprietary platform nPOS has been built and operated by lending practitioners, not just technology teams Deployed, stress-tested, and refined across multiple lending cycles and regulatory changes Validation & Underwriting Multi Channel Origination Lifecycle Management Digital
Slide 29: Leveraging Technology Stack
Leveraging Technology Stack Lead Generation Customer Onboarding Credit Underwriting Pre-Disbursal Loan Disbursal Loan Servicing • Digital form • OKYC/EKYC PD with customer CAM • E-Nach • Digital disbursal • Customer app summary assessment IMPS/RTGS/NEFT • Feet on Street • PAN verification • E-Sign •
Slide 30: Strong Liability Franchise
Strong Liability Franchise 29
Slide 31: Diversified sources of funding…
Diversified sources of funding… Borrowings Incremental Cost of Funds Increase in Risk Weights INR crore for NBFC Exposure in FY24 250 basis points repo 9.5% rate hike during FY23 9.0% 9.2% 9.3% 8.5% 8.8% 8.8% 8.6% 8.7% 8.0% 14,107 12,258 7.5% 9,048 9,860 7.0% 5,983 7,035 6.5% 6.0% Mar-22 Mar-23 Mar-
Slide 32: …with proactive liquidity management
…with proactive liquidity management Liquidity position INR crore Cash & Bank Balance Undrawn Sanction Consistently adhered to all RBI norms as well as ALCO guidelines clearly reflecting strong Asset 811 Liability position 783 732 595 497 457 No negative cumulative Mar-26 Jun-26 Sep-26 mis-match acr
Slide 33: Financials
Financials 32
Slide 34: Operating Parameters
Operating Parameters Portfolio Yields % and Cost of Funds %* 16.8% 16.9% 16.5% 17.1% 17.0% 16.3% 16.5% 16.4% 14.7% 13.9% 9.4% 8.8% 9.2% 9.1% 8.6% 9.9% 9.8% 9.3% 9.3% 9.3% 9.0% 8.3% 8.5% 6.5% 8.5% 8.5% 8.5% 8.5% 8.5% 5.5% FY22 FY23 FY24 FY25 FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Portfolio yield CoF
Slide 35: Sustainable growth in profitability
Sustainable growth in profitability Revenue From Operations * INR crore CAGR 29% 2,387 2,071 1,416 1,685 1,094 1,190 864 FY22 FY23 FY24 FY25 FY26 H1FY26 H1FY27 Pre-Provisioning Operating Profit (PPoP) (INR Cr) INR crore CAGR 35% 956 549 791 423 542 285 360 FY22 FY23 FY24 FY25 FY26 H1FY26 H1FY27 Note
Slide 36: Consolidated Income Statement
Consolidated Income Statement INR crore Q2FY26 Q1FY27 Q2FY27 YoY % QoQ % H1FY26 H1FY27 YoY FY26 Interest income1 533 655 711 33% 9% 1046 1366 31% 2,279 Interest expense 211 260 286 36% 10% 425 546 28% 902 Net Interest Income 322 394 425 32% 8% 620 819 32% 1,377 Fee & Other Income 21 22 28 34% 29% 48
Slide 37: Financial Dupont
Financial Dupont Particulars Q2FY26 Q1FY27 Q2FY27 H1FY26 H1FY27 FY26 Interest Income1 15.3% 15.5% 15.5% 15.2% 15.4% 15.5% Interest Expense 6.0% 6.2% 6.2% 6.2% 6.2% 6.1% Net Interest Income 9.3% 9.3% 9.3% 9.0% 9.2% 9.4% Fee and Other Income 0.6% 0.5% 0.6% 0.7% 0.6% 0.7% Net Revenue 9.9% 9.8% 9.9% 9.7
Slide 38: Balance Sheet
Balance Sheet INR crore Sep’25 Jun’26 Sep’26 Assets Financial assets Cash and bank balances 570 595 457 Loans 10,816 13,555 14,804 Investments 2,409 2,233 3,049 Other financial assets 312 580 620 Non-financial assets 255 216 233 Total assets 14,362 17,179 19,163 Liabilities and equity Financial liab
Slide 39: Board & Management
Board & Management 38
Slide 40: Diversified shareholders base
Diversified shareholders base Key Institutional Investors Leapfrog IFC – Affirma Capital Investments World Bank 34% 45% SMBC Morgan Stanley Dymon Asia HDFC Life Motilal Oswal Kotak Life 21% Insurance Mutual Fund Insurance JM Financial White Oak Canara HSBC Mutual Fund Capital Life Insurance Foreign
Slide 41: Board of Directors
Board of Directors : Mr. Ashish Mehrotra Ms. Anuradha Rao Mr. Ashutosh Arvind Pednekar Mr. Sandeep Dhar Managing Director & Non-Executive Non-Executive Non-Executive Chief Executive Officer Non-Independent Director Independent Director Independent Director ---------------------------------------- --
Slide 42: Managed by experienced leadership team
Managed by experience leadership team Pardhasaradhi Rallabandi Atul Tibrewal Saurabh Jaywant Group Risk Officer & Governance Chief Financial Officer Chief Legal Officer Head 31+ years of experience in Banking 22+ years of experience in finance 22+ years of experience in Previously associated with Pr
Slide 43: Sustainability
Sustainability 42
Slide 44: Enabling access to credit in India
Enabling access to credit in India 43
Slide 45: Brand engagement
Brand engagement 44
Slide 46: Strategic brand engagement
Strategic brand engagement 7th edition of the Global Fintech Fest 2026, 8-11 Sep 2026 India Fintech Conclave 2026 VCCircle Finserv Investment Summit 2026 Panel Discussion on ‘Co-Designing Responsible AI: BFSI, Regulators & the Future of Financial Innovation’ Participated as one of the exhibitors at
Slide 47: Thank you!
Thank you! For any query, please contact : Atul Tibrewal Chief Financial Officer [email protected] Chetan Parmar Head Investor Relations [email protected] 46