Ashish Mehrotra, MD & CEO, Northern Arc Capital
Northern Arc Capital Limited reported its highest-ever first-quarter profit on Monday, with profit after tax rising 41 per cent year-on-year to ₹114 crore in Q1FY27, even as its stock fell sharply on Tuesday following the announcement.Shares of the Mumbai-based non-banking financial company closed at ₹285.35 on the NSE on Tuesday, down 4.92 per cent from the previous close of ₹300.10, giving it a market capitalisation of approximately ₹4,639 crore.On the operational front, net interest income grew 32 per cent year-on-year to ₹394 crore, while pre-provision operating profit rose 27 per cent to ₹263 crore. Return on assets improved by 29 basis points to 2.7 per cent, and return on equity climbed 220 basis points to 11.5 per cent.Lending AUMLending assets under management expanded 26 per cent year-on-year to ₹16,855 crore as of June 30, 2026. Direct-to-customer lending, which now accounts for 64 per cent of total AUM, grew faster at 51 per cent year-on-year to ₹10,766 crore, crossing the ₹10,000 crore milestone during the quarter.Asset quality improved sequentially. Gross NPA declined 20 basis points quarter-on-quarter to 1.0 per cent, while net NPA fell 15 basis points to 0.5 per cent. Credit cost dropped 44 basis points year-on-year to 2.6 per cent, within the company's guided range of 2.7–2.8 per cent. The provisioning coverage ratio on Stage III assets stood at 48.5 per cent.Capital adequacy remained healthy at 22.7 per cent, and net worth grew 15 per cent year-on-year to ₹4,056 crore. The company also received SEBI approvals for two debt funds during the quarter.WatchfulnessICRA assigned Northern Arc its highest-band 'Outstanding' ESG Impact Rating with a score of 81 out of 100.MD & CEO Ashish Mehrotra flagged watchfulness around geopolitical risks in West Asia and potential El Niño disruptions, while expressing confidence in sustaining growth momentum.The stock has gained 23.27 per cent over the past year but remains off its 52-week high of ₹334, touched on July 13, 2026.Published on July 28, 2026
