Northern Arc Capital Q2 FY27 revenue up 38% to Rs 868 crore
The company's net profit increased 42.3% to Rs 129.48 crore in Q2 FY27 from Rs 90.98 crore in the corresponding quarter last fiscal.
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Financial services platform Northern Arc Capital reported a 38.4% year-on-year jump in revenue from operations to Rs 868.71 crore in the July-September quarter of this fiscal year FY27 from Rs 627.45 crore in Q2 FY26.
The company's net profit increased 42.3% to Rs 129.48 crore in Q2 FY27 from Rs 90.98 crore in the corresponding quarter last fiscal, according to filings with the stock exchanges.
Total expenses grew 39.6% to Rs 704.67 crore during the quarter, compared to Rs 504.88 crore in Q2 FY26. Employee benefit expenses increased 23.6% to Rs 104.34 crore from Rs 84.41 crore in the year-ago quarter.
Northern Arc Capital's net interest income (NII) rose 32% YoY to Rs 425 crore in Q2 FY27, while its profit before provision and tax (PPoP) increased 32% to Rs 286 crore. Credit costs declined 11 basis points to 2.55% from 2.66% in Q2 FY26.
The company's lending assets under management (AUM) grew 34% YoY to Rs 19,003 crore as of September 30, 2026. Its direct-to-customer (D2C) lending AUM stood at Rs 12,502 crore, accounting for 66% of the overall lending AUM.
Gross transaction volume increased 38% YoY to Rs 22,303 crore in the first half of FY27. Meanwhile, the company's gross non-performing assets (GNPA) ratio stood at 1.25%, while its net NPA ratio remained at 0.51% as of September 30, 2026.
Commenting on the results, Ashish Mehrotra, MD and CEO of Northern Arc Capital, said the company continued to scale its diversified financial services business, with D2C AUM crossing Rs 12,500 crore.
"As we enter the second half of FY27, with the onset of the festive season, our priorities remain centred on sustaining growth across business verticals, expanding fee-led revenue streams and maintaining a cautiously optimistic approach to lending in selected geographies impacted by drought conditions," he added.
He also said that the company's credit solutions business recorded 60% year-on-year growth in placement volumes to Rs 4,088 crore in Q2 FY27.
The company reported a return on assets (RoA) of 2.82% in Q2 FY27, up from 2.63% in Q2 FY26, while return on equity (RoE) increased 229 basis points YoY to 12.4%.
Northern Arc also achieved the first close of its new Diversified Debt Fund at over Rs 400 crore, against a target corpus of Rs 2,000 crore.