Northern Arc Capital share price today

Northern Arc Capital Ltd's share price was ₹252.80 at the close on 30 October 2026. It has been rising for 23 weeks. That is 9.0% below its average price over the last 200 trading days. In the last 52 weeks it traded between ₹212 and ₹325, and at that close it sat 36% of the way up from that low.

A share price tends to move through four phases: moving sideways (stage 1), rising (stage 2), stalling near a high (stage 3) and falling (stage 4). Today Northern Arc Capital Ltd is in stage 2. The phase helps read everything below.

Over the past 13 weeks it has done worse than the NIFTY 500, and it has been behind for 5 weeks running.

Over the last 2.1 years the share price moved −18% while the NIFTY 500 moved −10%, so it is behind the index over that whole period. It was last ahead over 13 weeks in the week of 28 September 2026. The chart above shows the 13-week comparison for every week.

This page treats a rise as over when the price closes below its 200-day average on two Fridays in a row.

Three changes stood out: revenue up on a year earlier for 9 quarters in a row (every quarter we can compare), indian funds and insurers (DIIs) cut their stake for 3 quarters in a row and highest quarterly revenue in 13 quarters.

1. Revenue up on a year earlier for 9 quarters in a row (every quarter we can compare)

   In the June 2026 quarter revenue was ₹780 crore, +28.9% on a year earlier.

   Why: Revenue rose because the company lent more. Partner-run consumer loans led the growth.

   From the earnings call on 29 Sep 2026.

2. Indian funds and insurers (DIIs) cut their stake for 3 quarters in a row

   From 8.3% to 5.1% of the company by the September 2026 quarter.

3. Highest quarterly revenue in 13 quarters

   Revenue of ₹780 crore in the June 2026 quarter is the highest of the last 13 quarters.

   Next results: check whether bad-loan costs stay in the stated range as partner-run consumer loans become a bigger part of the book.

   From the earnings call on 29 Sep 2026.

For April to June 2026 (the quarter ended 30 June 2026), Northern Arc Capital reported total income of ₹780 crore, up 28.9% from ₹605 crore a year earlier, and a profit of ₹114 crore, up 46.2% from ₹78.0 crore.

Northern Arc Capital results: April to June 2026 against a year earlier

The next results, for July to September 2026, are due by 14 November 2026: listed companies must publish quarterly results within 45 days of the quarter's end (60 days for the January to March quarter).

Northern Arc Capital's management discussed these results on a call held on 29 September 2026; what it said is further down this page.

From the company's reported quarterly results (quarter ended 30 June 2026). Income and profit in ₹ crore.

Northern Arc Capital closed at ₹252.80 on 30 October 2026, down 7.1% from ₹272.15 a year earlier (31 October 2025). Its highest weekly close since September 2024 was ₹325.30 on 10 July 2026.

Northern Arc Capital share price: then and now

Weekly closing prices. Each change is the move from that price to the 30 Oct 2026 close. A day's intraday high or low can go beyond these weekly closes.

117 weekly closes from 27 September 2024 to 30 October 2026.

30 Oct 2026: Northern Arc Capital closed at ₹252.80, up 2.2% on the week and down 12.4% on the month. Our read, 10 Oct 2026: Northern Arc's earnings recovery is visible, but unreconciled direct-lending disclosures and incomplete loss reporting keep the case conditional.

Earlier

• 29 Sep 2026: Northern Arc Capital held its results call for April to June 2026. Management guided: FY27 growth 22-23%.
• Results for April to June 2026: Total income up 28.9% and profit up 46.2% on a year earlier.

Our read of the business

Latest quarter: Growth guidance lasts, but the credit-cost ceiling widens and segment balances need reconciliation.

Our read after the latest results, written 10 October 2026.

Northern Arc Capital has paid no dividend on the NSE since its first NSE close in our records (27 September 2024), the start of the period we checked.

No. Northern Arc Capital Ltd paid out 0% of its profit as dividends in each of its last 9 reported years, so there is no payout history to show. That comes from the filed annual statements, not an estimate.

From the NSE corporate-actions record, read 5 November 2026.

On the call for April to June 2026, held on 29 September 2026, Northern Arc Capital's management guided: FY27 growth 22-23%.

“We are sticking to our growth guidance of 22-23% for the year. Since we are at the fag end of September, let me tell you that we are on track. - Atul Tibrewala”CFO, on the call for April to June 2026

What management guided

• FY27 ROA moving from 2.6-2.7% toward 3% by year-end.
• FY27 credit cost 2.6-2.8% despite a higher D2C mix.
• D2C mix expected to reach 70% by year-end.
• Funding cost expected to rise 15-20 paise over six months, with lending rates also increased.

Management’s own plans and goals, from our notes of the call. A plan is not a result.

Source: the call transcript.

From the call for April to June 2026, 29 September 2026.

The changes showing up in Northern Arc Capital's own numbers are fewer bad loans. It is too early to say whether they last.

We check 16 kinds of change in every company, such as costs spread over more sales, higher-value products, new orders, new regions or falling debt, against its reported numbers and what management said on its calls. Only changes the numbers back are shown.

Checked against results and calls up to April to June 2026, 10 October 2026.

Reconciled direct-lending assets contract, or cohort losses consume the yield premium.

Each change stops working if

• Direct-to-customer mix and pricing: Reconciled direct-lending assets contract, or cohort losses consume the yield premium.
• Collections and rural lending restart: Rural collections deteriorate or renewed disbursements raise credit losses above guidance.
• Fee and fund throughput: Fundraising and placements fail to convert into recurring net fee income.
• Loan repricing and funding headroom: Asset repricing lags funding resets or higher lending rates impair growth and collections.

The main risks

• Guidance and segment reconciliation: Profitability guidance and the direct-lending balance remain insufficiently reconciled. ⚠ estimate
• Write-offs and provision quality: Low bad-loan ratios can coexist with losses removed through early write-offs. ⚠ estimate
• Direct-lending and partner cohort losses: Higher-yield loans can reveal losses after origination, while partner protection has limits. ⚠ estimate
• Funding resets and dilution: Funding can reprice before fixed customer loans, and a later equity raise may dilute per-share returns. ⚠ estimate

Our read after the latest results, written 10 October 2026.

When Northern Arc Capital reports July to September 2026, these are the 4 checks that show whether the story is still on course. First: Credit cost stays at or below 2.7% in Jul-Sep 2026 with no one-off reversal, while early-stage (31-90 day) late loans stay at or below 1.5%.

Northern Arc Capital is on one of our India lists: Multibagger study list.

Northern Arc Capital Ltd earned ₹114 Cr of net profit in the Jun 2026 quarter, +46.2% on the same quarter a year earlier. That is the 3rd quarter in a row of profit growth. Full-year FY26 profit was ₹404 Cr. Over 9 years profit has grown 22.7% a year on average. That is 14.6% of the quarter's revenue.

Net profit is what is left after every cost, interest and tax. Earnings per share, dividends and book value all grow from it.

Why this happened. FY27-Q1 profit 114 crore versus 78 a year earlier (+46 percent including non-controlling interest; headline +41 percent uses 81). Sequential 133 to 114 is −14 percent, and the whole profit-before-tax drop of 23 crore is the credit-cost add of 23 crore. FY26 profit 406 crore sits beside auditor write-offs 694.16 crore (171 percent of profit) and impairment 412 crore. Q1 credit cost 110 is 96 percent of Q1 profit.

The same quarter a year earlier earned ₹78.0 Cr.

For the full year, FY26 profit was ₹404 Cr (+34.2% on the year before).

Why profit moved: revenue changed +28.9% on a year earlier and the margin moved +1.7 percentage points. Sales did the work, and the margin was about flat.

On average over the last four quarters, profit changed +82.7% and revenue +21.1%. Profit is growing faster than sales: fixed costs are spread over more sales, so each extra rupee of revenue adds more to profit.

Pre-cycle expansion, still-low credit cost · FY24-Q1 → FY24-Q4. Pre-cycle expansion; credit-cost rupees not in the decks used; database profit 91. Book still compounding; credit-cost rupees not in the decks used.

Credit-cost cycle into the March 2025 trough (profit 38) · FY25-Q1 → FY25-Q4. First listed call. Credit cost 51 (1.7 percent of average assets, 60 bps model change). Gross bad loans 0.47 percent, before the 90-day write-off flood. Direct-to-customer 52 percent. Promise: no additional stress on own book. Credit cost 78; first-half 130 = 2.1 percent of assets. Stage-1 cover 0.65 percent to 1.01 percent. Direct microfinance 11 percent. Branches paused at 370. AUM guide 25 to 27 percent, later cut.

Repair with a moving guide; FY26 gross bad loans 1.2 percent · FY26-Q1 → FY26-Q4. AUM −2 percent sequential. Credit cost 102 (3.0 percent) includes residual default-loss-guarantee 19. Gross bad loans 1.13 percent beside write-off policy. later walked back. Credit cost 92 (2.7 percent). First of the FY26 guide cuts: AUM 20 to 25 to 18 to 22 percent; next-year credit cost 2.3 to 2.5 percent (later abandoned). Rural credit cost 7.7 to 5.1 percent.

Why-sources: our stock research file (17 August 2026) and the company’s own results for those quarters.

Northern Arc Capital Ltd reported ₹780 Cr of income in the Jun 2026 quarter, +28.9% on the same quarter a year earlier. That is the 9th quarter in a row with growth on the year before. Over 9 years it has grown 24.7% a year on average. The last full year, FY26, came in at ₹2,691 Cr.

For a bank, revenue is everything it earns: interest on its loans plus fees and other income.

The last four reported quarters add to ₹2,870 Cr.

FY26 revenue was ₹2,691 Cr, +14.8% on the year before.

Recent pace: the last four quarters grew +21.1% on average, against 24.7% a year over the longer run, so this year is growing slower than its own long-run rate.

Is growth speeding up? Revenue over the last 12 months grew +21.1%, against +17.7% a year over the last 8 quarters (accelerating); profit over the last 12 months grew +54.4%, against +13.6% a year (accelerating).

Book compounding interrupted only in FY25-Q3 freeze and FY26-Q1 dip · FY24-Q1 → FY27-Q1. Pre-cycle expansion; credit-cost rupees not in the decks used; database profit 91. Book still compounding; credit-cost rupees not in the decks used.

Why-sources: our stock research file (17 August 2026) and the company’s own results for those quarters.

Northern Arc Capital Ltd's net margin was 14.6% in the Jun 2026 quarter, 1.7 percentage points higher than the same quarter a year ago. Across 9 years it has been between 11.3% and 20.0%. The latest quarter is within that range.

Net margin is what the bank keeps from every ₹100 of revenue after every cost, provision for bad loans and tax. It is the clearest single margin we can read for a lender.

Why this happened. Net interest income 394 crore (+32 percent year-on-year). Net interest margin 9.3 percent in the quarter against a 9.5 percent next-quarter promise and a 10 percent year-end promise. Book cost of funds 8.46 percent; incremental 8.69 percent. That gap caps the spread. Opex 3.6 percent of assets in FY26. Credit cost 2.6 percent of average total assets (2.76 percent of earning assets) is the line that governs residual return on assets 2.7 percent versus a 3 percent goal.

Why: the net margin move is clear, but the cost details behind it are not in our data, so we show the move without guessing the reason.

Northern Arc Capital Ltd does not report loan-quality figures this page can read, so this section says so rather than guess. No bad-loan figures are filed in a form this page can read, and none are guessed from the profit line. The income, margin and return sections carry what this business does report.

Gross NPA is the share of the loan book where repayments have stopped. Net NPA is what is left after the money the lender has already set aside for those loans. Falling is good; rising is a warning.

Why this happened. FY26 operating cash outflow 1,541 crore is loan-book growth (loans increased 3,521 crore in the working-capital line), not an industrial cash-quality fail. The lender substitute is credit cost plus write-offs plus funding: FY26 pre-provision 956 versus credit cost 412 (43 percent eaten) versus auditor write-offs 694 (73 percent eaten). First-loss unsized. Negative operating cash on a growing lender is shown and then ignored as a fail.

Why this happened. Gross bad loans 1.0 percent in June 2026 and 1.2 percent at FY26 close, both beside the 90-day unsecured write-off and beside FY26 auditor write-offs 694.16 crore (3.58 times remaining Stage-3 of 194 crore). Q1 ARC 38.23 crore gross. Stage-3 cover 48.5 percent on a 64 percent direct-to-customer book. Consumer 0.2 percent gross bad loans with 5.0 percent credit cost. Small-business Gross Stage-3 5.47 percent in June 2025. Overlay about 66 crore held. Write-offs in the same breath as the ratio, from the notes, not the call.

Why: loan quality drives a lender, but its details (new bad loans, recoveries, money set aside) are not in our data for this company. The sections around this one carry what we can back up.

Northern Arc Capital Ltd's revenue was ₹2,691 Cr in FY26, +14.8% on the year before, so the loan book is growing. The latest quarter was +28.9% on a year earlier. The net margin on that income is 14.6%, +1.7 percentage points on a year ago.

We read the loan book through revenue: when the book grows, revenue grows with it. It is only a rough guide, because interest-rate changes and fee swings can move it a few points in any year.

Why this happened. Lending assets under management 16,855 crore (+26 percent year-on-year, +1.6 percent sequential). Direct-to-customer 10,766 crore, 64 percent, +51 percent. Intermediate book shrank 713 crore sequential to 6,089. Direct rural 1,203 crore is 7.14 percent; look-through unsecured adding 18 to 22 percent of the intermediate book is 13.6 to 15.1 percent. Co-lending 2,119 crore is on someone else's sheet with 10 percent retention. On-book 13,555. Branch count 430, rural about 3.5 crore of assets per branch.

Interest income stands in for the size of the loan book; changes in interest rates can move it a few points in any year.

In short: a lender grows well when its loan book grows, its margin stays steady and its loans stay clean. Gross NPA is the loan-quality figure this page uses.

Northern Arc Capital Ltd's P/BV is 1.1×, near the low end of its own history: it has been lower only 19% of the time. Its usual P/BV (the middle reading) is 1.2×, over 2 years of weekly prices. This compares the share price with the company’s own past. It does not say what the business is worth.

For a bank or lender we compare the price with book value, the net worth on its balance sheet. P/BV is how many rupees the market pays for each ₹1 of that net worth. Below 1× means the market values it at less than its net worth.

Why this happened. Price 281 rupees on 16 August 2026. Price-to-book 1.17 on March book 241 and 1.12 on June book. Listed September 2024, about 22 months of history, not a ten-year cycle. A 1.35 snapshot for the week of 9 August carries low-reliability and zero cycle count. Ordinary earnings-multiple 10.4 is the wrong lens. Price-to-book divided by return on equity is 10.5. The multiple assumes about 14 percent return on equity; the book delivered 11.1. Sensitivity must shock leverage and credit cost, not only return on equity.

Why the multiple is low: this lender earns about 11% a year on its equity. A lender that earns less on its net worth is valued lower for each rupee of it, and that gap usually closes only if returns improve.

Why the multiple is where it is: over the past year book value grew while the price moved −7.1%. Price and book value moved together, so the multiple stayed in its range.

In short: the multiple is low against its own past, so the book value trend underneath matters more than the multiple.

The PEG ratio and its quarterly curve, which only the second data source has, are not shown on this page: its two data sources disagree by up to 20% on reported income across 13 comparable periods. When two sources disagree on a figure, we leave it out on purpose. The gap is a choice, not missing data.

Worked out from its price on 11 October 2026, Northern Arc Capital Ltd's share price assumed profit growth of about 3.1% a year. Over the past 9 years its profit actually grew 22.7% a year. Today its P/BV is 1.1×, lower than 81% of its own last 2 years.

This works the share price backwards. It asks one question: what yearly profit growth does the price already assume? The answer is the growth rate at which eleven years of profit (six years of growth, then five years of slowing) add up to that day's market value, after each year is discounted at 11%.

This is a one-day reading, taken on 11 October 2026. Every other number on this page, the multiple included, uses the latest price as of 30 October 2026. A higher price assumes more growth and a lower price less, so it changes whenever the price changes, and this page does not update it between measurements.

Northern Arc Capital Ltd's business is turning around. Profit growth has swung from −17.0% at its low to +46.2%, rising from a low 4 quarters ago (from single-quarter figures), with ROE steady at 11.0%. This is based on 9 quarters of 3 measures, with some gaps.

Every business is somewhere on a path of getting better or worse, and this section names where. The last 12 quarters of growth in revenue, profit and earnings per share, plus the return the business earns on its capital, are read as lines. Getting worse: the lines are falling. Turning around: a low point has just formed and the last few quarters are rising from it. Getting better: the rise from the low has lasted. Growing steadily: steady growth with healthy returns. Slowing from a peak: still high, but slowing. When the lines disagree the result is mixed; too little history means no reading. CAGR (compound annual growth rate) is the steady yearly rate that would turn the starting value into the latest one. It is the fairest way to compare growth over different periods. If the 1-year figure is much bigger than the 10-year one, recent growth is running faster than the long-run trend. A dash means there is no figure for that period, or the starting year was a loss, where a growth rate means nothing.

Why it matters: a turn in growth is often where a bigger change starts. The lines say a turn is forming, so the question is whether the next quarters confirm it.

One or more growth lines have an extreme jump caused by comparing with a near-zero or loss-making quarter. Those jumps are capped before reading and drawn at the edge of the chart, so one odd quarter does not decide the result.

The return figures here are yearly, not quarterly. They show level and direction only; they can support the growth lines but never decide the reading alone.

This reading has some gaps: at least one line is short, or the return line is not the quarterly series, so treat it with a little more caution.

Compound annual growth rate (%)

Compound annual growth rate over each period, %. Revenue, profit and EPS come from yearly figures; the share price row is price growth over the same periods. A dash means no figure for that period, or the starting year was a loss.

Northern Arc Capital Ltd's story is not scored yet against the checks our research set on 17 August 2026. Where it sits in its own cycle: Early expansion with defensive provisioning after a deep credit-loss cycle. Checks so far: 20 not due yet.

NOT YET CHECKED 20 not due yet · first check at the next results

From the numbers. Profit recovered from the March 2025 trough of 38 crore to 114 crore in FY27-Q1, but credit cost is still 110 crore that quarter (96 percent of profit) and the guide has 2.6 to 2.7 percent.

From the price. Fell 4.9 percent on results day; 281 rupees on 16 August 2026 is 1.17 times March book and 1.12 times June book on a 22-month listed series.

From the research. Three guidance cuts, two 2026 regulator penalties, unanswered 5 percent first-loss on 19 consumer partners, overlay of about 66 crore held after default-loss-guarantee relief.

What is proven. Lending assets under management 16,855 crore (+26 percent), direct-to-customer 64 percent, pre-provision profit covering the profit-and-loss credit-cost charge in all eight fully measured quarters, capital adequacy 22.71 percent. FY26 auditor-noted gross loans written off 694.16 crore against profit after tax 406 crore (171 percent of profit); profit-and-loss impairment 412 crore. The 301 crore figure is FY25 profit, discarded as a write-off.

What is not proven yet. Credit cost below the live 2.6 to 2.7 percent guide without 90-day write-offs, stressed-loan sales and partner first-loss; seasoning of 430 branches and the 51 percent direct-to-customer burst; look-through unsecured 14 to 16 percent versus direct rural 7 percent; Nimbus first-loss stock in rupees; unlocked private-equity supply.

What would change our mind. Gross bad-loan ratio above 2 percent is a crash test, not this WATCH test.

The test written in advance. Credit cost delivers toward the original FY27 path, not the cut guide. Measured by: credit cost as a percent of quarterly average total assets at or below 2.3 percent for two consecutive prints, with the live guide not raised by FY27-Q3 results, expected around 31 January 2027.

The test written in advance. Write-off rupees disclosed and falling. Measured by: quarterly loans written off in rupees, and FY27 auditor-noted gross write-offs.

The test written in advance. Gross bad-loan stock in rupees, not only the ratio. Measured by: Stage-3 / gross bad-loan stock in crore, beside write-offs of the same period Stage-3 stock in rupees not rising while the 1.0 percent ratio is celebrated; write-offs named in the same sentence by FY27-Q2 results, expected around 31 October 2026.

How the money is made. Profit is (loan yield minus borrowing cost) times earning assets, plus fees, minus operating costs, minus credit cost (provisions plus write-offs minus recoveries), minus tax.

The key numbers to watch, and the level that would change the picture

Everything further down this page is evidence for or against these.

Why the latest quarter changed (FY27-Q1 versus FY26-Q1)

Did the business cover its own costs? Operating profit covered credit cost and gross write-offs against pre-provision operating profit in 8 of 8 periods; cumulatively. The P&L charge is covered. The write-off machine is not a covered story. Guide 2.6 to 2.7 percent means coverage does not improve by management intention.

Gross bad-loan ratio versus write-off rupees. Gross bad loans printed 1.0 percent on 30 June 2026 and 1.2 percent at FY26 close. In the same breath: unsecured written off at 90 days, FY26 auditor write-offs 694.16 crore (3.58 times remaining Stage-3 of 194 crore, 171 percent of profit 406), Q1 stressed-loan sale 38.23 crore, consumer 0.2 percent gross bad loans with 5.0 percent credit cost, small-business Gross Stage-3 5.47 percent in June 2025, Stage-3 cover 48.5 percent. The ratio and the rupees tell opposite stories. Equifax itself flags write-offs as the microfinance improvement channel.

Optical domestic-institution exit versus frozen private-equity blocks. Domestic-institution share 23.36 percent (September 2024) to 5.63 percent (June 2026) looks like a dump. The cliff is March to June 2025, the quarter after lock-in expired. LeapFrog 16.15 percent and Augusta 16.02 percent share counts are frozen; they were recast from domestic-institution-others into public foreign companies.

What is temporary, what is cyclical, what is structural

• 1 · Operating leveragefaded
• 2 · Value-added mixworking now
• 3 · Management changequiet
• 4 · Paying down debtreversed
• 5 · Regulatory approvalfaded
• 6 · Order-book winsquiet
• 7 · Consolidationquiet
• 8 · Demerger or value unlockquiet
• 9 · Buybackquiet
• 10 · New geographiesquiet
• 11 · More business from existing customersbuilding
• 12 · New product launchquiet
• 13 · Mandatory normsquiet
• 14 · A bigger market to servequiet
• 15 · Market-share gainsquiet
• 16 · Asset qualityworking now

What this research does not know. Quarterly write-off rupees for all 13 quarters except the FY27-Q1 stressed-loan sale of 38.23 crore gross. Old-dive Q1 write-off 74 crore is unmapped in Q1 notes and is not used.; Annual Report 2025-26 Notes 7 and 36 not extracted, the page does not list that report as of 17 August 2026. Auditor write-offs 694.16 versus profit-and-loss 411.88 remains unreconciled (attempted remainder about 8 crore, mixed…; Assigned versus on-book versus partnership write-off split unknown. Consolidated versus standalone write-off perimeter mixed.; Look-through unsecured of assets under management has no official table. Direct rural 7.14 percent plus 18 to 22 percent of 6,089 crore intermediate = 13.6 to 15.1 percent is arithmetic, not a filing line.; Nimbus first-loss / cash collateral outstanding in rupees, as a percent of net worth 4,056 crore, and by special-purpose vehicle, unsized.; First-loss percent on each of 19 live consumer partners, asked 27 July 2026, unanswered. Co-lending note says up to 5 percent.

Sources: Official Q1 FY27 earnings-call transcript (IR PDF, 14 pages / 7,197 words, not the truncated stub) (27 July 2026); Hindu Business Line, Q1 FY27 print and 4.9 percent results-day move (28 July 2026); CNBC TV18, Q1 FY27 (standalone profit 121.8 crore, provisions 110.5 crore) (27 July 2026); ScanX, Q1 FY27 notes: overlay 65.84 crore and ARC transfer 38.23 crore (28 July 2026); Standalone FY26 results PDF (Walker Chandiok, year ended 31 March 2026), KAM write-offs cited via annual-report digest (31 March 2026); ICRA rationale PDF, AA- Stable, first-loss at 90-plus days, gearing about 3.0 times (29 December 2025); CARE rationale, MSME Gross Stage-3 5.47 percent as of June 2025 (6 October 2025); Trendlyne shareholding, June 2026 pattern, lock-in 0, LeapFrog 16.15 percent, Augusta 16.02 percent (17 August 2026); +8 more. The story check is re-scored every results season; the record below never changes.

The whole page in one table. Each row links to its section.

What Northern Arc Capital Ltd's management promised, against what actually happened: 6 promises on the record. Scored in our research file, promise by promise. A promise that slipped stays on this page after it is met.

Said 1 October 2024, due FY25 close: missed. Promised: Fee and other income back to FY24's 1 percent of average total assets. What arrived: FY25 fee 0.8 percent; Q4 FY25 0.9 percent; FY26 0.7 percent; FY27-Q1 0.5 percent.

Said 1 October 2024, due FY25: missed. Promised: Credit cost consistent; 1.7 percent includes 60 bps model, underlying about 1.1 percent; no additional stress on own book. What arrived: FY25 credit cost 3.2 percent (405 crore); Q4 194 crore.

Said 1 October 2024, due next few quarters: missed. Promised: Growth similar to 30 percent-plus three-year compounding. What arrived: FY25 assets under management +16 percent.

Said 28 October 2024, due 31 Mar 2025: missed. Promised: Assets under management 25 to 27 percent by end-FY25. What arrived: +16 percent to 13,634 crore. Cut to 15 to 20 percent on 14 Feb 2025, guidance cut 1.

Said 28 October 2024, due FY25: missed. Promised: no change in guidance. What arrived: 3.2 percent / 2.6 percent excluding the default-loss-guarantee item.

Said 28 October 2024, due near term / FY25: not due yet. Promised: Branch expansion paused until the credit environment eases. What arrived: Held through FY25 (370 to 360). Restarted FY26 (+72). Delivered as a pause; restart is a new promise.

Every quote above is taken word for word from the company’s own earnings calls.

The FY26 annual report says lending was moderated during the microfinance downturn, while the original July-call excerpt acknowledges early unsecured write-offs. This is evidence of acting through stress, but write-off rupees, provision quality and partner-loss protection remain unresolved.

Regulatory and governance record

RBI found incomplete or inaccurate complaint disclosures and failed escalation. Neither proves fraud, a material lie, a currently open material case or a huge unowned central miss; pass under the specified bar, with the completed disclosure finding explicitly retained.

Checked 14 October 2026.

Northern Arc Capital Ltd earned a return on equity of 11% in FY26. Its lowest yearly reading on file was 5% in FY21. For a lender the balance sheet is the business, so the return on equity and on assets have to be read together.

Two numbers rate a bank: ROE, what it earns on shareholders’ money, and ROA, what it earns on all its assets. An ROE above about 13 to 15% is healthy; below that, net worth grows slowly.

Why this happened. FY26 return on equity 11.1 percent, Q1 about 11.5, return on assets 2.7 to 2.8 percent. Gearing 3.07 times pins it. Goal 15 to 17 percent in 8 to 10 quarters is unearned while credit cost has 2.6 to 2.7 percent. Capital adequacy 22.71 percent is solvency, not earning power. Price-to-book 1.17 on 11.1 percent return is 10.5 years of that return to earn the book premium. Return on purchase price 9.5 percent.

Return on assets is left out here, because its two sources disagree for this quarter. That return is below the level a bank needs to grow its net worth quickly, which helps explain why its multiple is where it is.

Why ROE moved: profit grew 22.7% a year over 9 years while net worth grew more slowly. When earnings recover faster than net worth builds up, ROE climbs off its low.

The quarterly return-on-equity and return-on-assets curves, which only the second data source has, are not shown on this page: its two data sources disagree by up to 20% on reported income across 13 comparable periods. When two sources disagree on a figure, we leave it out on purpose. The gap is a choice, not missing data.

For a bank, borrowing is the raw material of the business, not a warning sign: it borrows money in order to lend it out. Its safety is read through its returns and its loans. Its safety is read from the bad-loan figures and the return on equity instead.

Why this happened. Borrowings 12,440 crore in June 2026 against equity 4,056, gearing 3.07 times. Capital adequacy 22.71 percent. Rating AA- stable / A1+ reaffirmed. Incremental cost of funds 8.69 percent versus book 8.46. Annual-general-meeting 18 August 2026 seeks borrowing limit 15,000 to 17,000 crore and 5,000 crore of private-placement notes. Funding access lasts. First-loss on the partner book is the un-sized liability-side plug: 29 percent of assets under management is partner-originated retail with first-loss invoked at 90-plus days, per the December 2025 rating rationale.

For a manufacturer, debt is a claim on its profits. For a lender it is the stock it trades in, so the usual debt-to-equity test would mislead and is not used here.

Domestic institutions cut their stake in Northern Arc Capital Ltd by 18.2 percentage points over 8 quarters, the biggest change among its owners. Domestic institutions now own 5.1% of the company. Foreign institutions moved +8.3 points over the same period, to 12.9%. This uses the four owner groups that companies report every quarter; nothing is guessed between filings.

Who owns the company each quarter: promoters (the founders or controlling owners), foreign institutions, domestic institutions such as mutual funds, and the public. When people close to the business steadily raise their stake, that is worth noticing; a quiet list is also an answer.

Why this happened. No promoter. Pledge zero. Lock-in already zero since about March 2025. LeapFrog still has 16.15 percent and Augusta 16.02 percent with lock-in already at zero since about March 2025. Eight Roads 6.87, IFC 6.07, Accion 3.98, foreign companies about 49 percent, unlocked. Optical domestic-institution drop 23.36 to 5.63 percent is mostly a recast after lock-in expiry; LeapFrog and Augusta share counts are frozen. insurance 2.70 to 1.61. Shareholder count 124,981 to 90,306. Supply risk is live, not a 2025 event.

Why the owners changed: foreign institutions moved +8.3 points and domestic institutions −18.2 points over 8 quarters. One group of institutions took over shares from the other; it is not a change of mind by the people running the company.

For Northern Arc Capital Ltd, the Z-score is not used, because it was built for manufacturers, not lenders. For a lender, safety is read from its capital and bad-loan figures instead.

The Z-score estimates how far a company is from balance-sheet trouble. Above about 3 is safe; below about 1.8 is the danger zone. It was built for manufacturers, so it is not used for banks and lenders.

Why this happened. Two Reserve Bank penalties in 2026: 2.70 lakh on 29 to 30 January (no suspicious-transaction software) and 6.20 lakh on 14 August (wrong FY25 complaint disclosure plus Internal Ombudsman bypass). FY26 complaints 29,768 received / 156 pending, and the August order says FY25 complaint disclosure was wrong, so the complaint print cannot be taken at face value until restated. Subsidiary employee misappropriation 2.09 crore. Employee turnover 51.80 percent. Amounts on the penalties are small. Pattern on a 64 percent direct-to-customer book is franchise risk.

71.2 out of 100, rank 2 of 7 in Finance & Investments - Microfinance, with 70% of the evidence available.

Northern Arc Capital Ltd scores 71.2 out of 100 against the 7 companies it is compared with in Finance & Investments - Microfinance, ranking 2. The evidence is balanced: no factor stands out, so another reported quarter is needed before the picture is clearer.

The four parts add up to the total exactly: 24.2 + 16.2 + 14.2 + 16.6 = 71.2. This is the same number shown on the industry page; it is worked out once for the whole group and read here.

What would change it: The score would fall if ROA turns down or gross NPA rises while the share price lags its sector.

Northern Arc Capital ranks 2 of 7 Finance & Investments - Microfinance companies on the 4-Factor Sector Score, with 71.2 out of 100.

Missing figures are not scored as bad. They lower the confidence and pull the final score toward the middle. Relative strength counts only when the company has a reading for this week; with no reading, that factor is left out and its 20 points are shared across the other three in proportion. Financial companies use P/BV÷ROE and asset quality; PEG, industrial OPM and ROCE are excluded. Under relative strength, one mark per week shows the last 12 weeks: a mark is filled where the company led NIFTY 500 by 5% or more over the 13 weeks ending that week, which is the same test used everywhere on this site. Price stage places the company on the same six-step path the industry is placed on (basing, turning, breaking out, leader, fading, asleep), read from how many weeks running it has led NIFTY 500 and whether that lead is growing or shrinking. It describes where the share price stands, not the direction of earnings, and it is not a recommendation; it is left blank for a company whose weekly history is too short or too stale to read.

The figures in this ranking come from the industry comparison: results through the Sep 2026 quarter, and the P/E at that quarter's end. The sections above use the latest weekly price, so a P/E or return there can differ a little from the one here. The stage words in this ranking (such as losing its lead or breaking out) describe the lead over the index, not the price phase in the price section.

Related companies: Finance & Investments - Microfinance, all 7 compared on one page.

Northern Arc Capital is the 2nd largest of 7 Finance & Investments - Microfinance companies on Sector Alpha by market value (scores of 30 October 2026). Just above it: CreditAccess Grameen. Just below it: Satin Creditcare Network, Muthoot Microfin, Fusion Finance, Spandana Sphoorty Financial and Arman Financial Services.

Finance & Investments - Microfinance companies close in size

1. CreditAccess Grameen Ltd ₹16,434 crore
2. Northern Arc Capital Ltd ₹4,091 crore
3. Satin Creditcare Network Ltd ₹2,639 crore
4. Muthoot Microfin Ltd ₹2,300 crore
5. Fusion Finance Ltd ₹2,093 crore
6. Spandana Sphoorty Financial Ltd ₹1,993 crore
7. Arman Financial Services Ltd ₹1,495 crore

All 7 Finance & Investments - Microfinance companies, largest first

Companies close in size in other industries

915. Sunteck Realty Ltd ₹4,115 crore · Realty - Construction & Contracting
916. Uflex Ltd ₹4,098 crore · Packaging - BOPP
917. Northern Arc Capital Ltd ₹4,091 crore
918. Shilchar Technologies Ltd ₹4,091 crore · Capital Goods - Transformers
919. Mahindra Logistics Ltd ₹4,090 crore · Logistics - Warehousing/Supply Chain

Our Northern Arc Capital Ltd research of 17 August 2026 set 20 checks, and every results season scores each one. No results season has been scored against them yet. A row is permanent: a miss stays on the record after it is fixed.

The checks we set once and score every results season

A row is permanent: a miss stays on the record even after it is later fixed.

What we checked on how Northern Arc Capital Ltd is run. 6 items came back clean and 8 are being watched. Read from the company’s own filings and earnings calls; a watch item is a question, not a finding.

Clean (6). FY26 standalone audit unmodified by Walker Chandiok (year ended 31 March 2026); opinion not modified on the default-loss-guarantee emphasis-of-matter. Auditor fee 1.628 crore.; FY27-Q1 limited review also Walker Chandiok, board 27 July 2026.; No promoter; pledge 0.0 percent every quarter since listing. Chair (P.S. Jayakumar) is not the chief executive (Ashish Mehrotra).; Locked-in shares 0.0 percent as of June 2026, lock-in expired about 20 March 2025. This is a fact, not a quality stamp; supply sits on watch.; Whistle-blower complaints 0 in FY26. Directors: non-disqualification certificate, FY26.; Capital adequacy 22.71 percent at 30 June 2026; rating AA- stable / A1+ reaffirmed (rationale 29 December 2025). Joint-auditor add is threshold-driven (assets above 15,000 crore), not a qualified opinion.

On watch (8). Private-equity / development-finance overhang about 49 percent unlocked: LeapFrog 16.15 percent (26,108,216 shares, count frozen), Augusta / Affirma 16.02 percent (25,887,110, unlocked from March 2025), Eight Roads 6.87 percent, IFC 6.07…; Chief executive FY26 pay 10.66 crore versus median employee 5,58,280 = 191 times. Annual-general-meeting 18 August 2026 seeks fixed 6.05 crore, variable 3.52 crore, plus special discretionary 2.10 crore. Chair commission 2.03 crore for…; Director-interested loans FY26: Easy Home 6.36 crore (chief executive interest); Neogrowth 21.88 crore (nominee director). Small versus assets under management; they are related-party credit.; First-loss unsized: 29 percent of assets under management is partner-originated retail with first-loss invoked at 90-plus days (December 2025 rating rationale). 5 percent on all 19 consumer partners asked 27 July 2026, unanswered. Nimbus…; 90-day write-off plus auditor write-offs 694.16 crore plus Q1 stressed-loan sale 38.23 crore versus gross bad loans 1.0 percent in June 2026 and 1.2 percent at FY26 close. Stage-3 cover 48.5 percent on a 64 percent direct-to-customer book.; Two Reserve Bank penalties in 2026: 2.70 lakh (29 to 30 January, no suspicious-transaction software) and 6.20 lakh (14 August, wrong FY25 complaint disclosure plus Internal Ombudsman bypass). Repeat supervisory hits.; Subsidiary employee misappropriation 2.09 crore (annual-report note). Employee turnover 51.80 percent FY26. Customer complaints FY26: 29,768 received, 156 pending, and the August order says FY25 complaint disclosure was wrong.; Three guidance cuts (FY25 assets-under-management 25 to 27 to 15 to 20; FY26 20 to 25 to 18 to 22; FY27 credit cost 2.3 to 2.5 abandoned). Founder/vice-chair tenure ended 31 March 2026. Write-off policy versus ratio cosmetics is a disclosure game, not…

Sector Alpha, written by code from the published numbers. Data as of 30 October 2026.

Every chart on this page is drawn by code from the published figures, with no forecasts and no price opinions.

See the plain-text version of this page.