Q3 2026 Northern ARC Capital Ltd Earnings Call Transcript
Key Points
- Northern Arc Capital Ltd (NSE:NORTHARC) achieved a significant milestone by crossing INR15,000 crores in assets under management.
- The company reported its highest ever quarterly profit after tax of over INR100 crores.
- AUM posted a strong growth of about 23% year-on-year and 7% quarter-on-quarter, reaching INR15,121 crores.
- The direct-to-customer business segment grew by about 29% year-on-year, driven by consumer finance and MSME growth.
- Fee-based businesses showed strong growth, with placement volume increasing by 73% year-on-year and 43% quarter-on-quarter.
- Stress continues to build in the unsecured business loan and small ticket LAP segments.
- Retail securitization volume year-to-date remained lower than last year by about 7%.
- Offshore funding participation has stayed muted, and liquidity continues to be challenging.
- Credit costs increased to about INR130 crores, driven by higher provisioning in the consumer finance portfolio.
- The MSME segment experienced higher credit costs, reflecting industry-wide challenges.
Ladies and gentlemen, good day and welcome to the Q3 FY2026 conference call of Northern ARC Capital hosted by Ambit Capital.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Raghav Garg from Ambit Capital. Thank you and over to you.
Good evening, everyone. On behalf of Ambit Capital, I would like to welcome you all to the third quarter of FY26 earnings call for Northern ARC Capital. Joining us from the management today, we have Mr. Ashish Mehrotra, Managing Director and Chief Executive Officer; Mr. Atul Tibrewal, Chief Financial Officer; Mr. Pardhasaradhi Rallabandi, Group Risks Officer and Governance Head; and Mr. Chetan Parmar, Head of Investment Relations. I would like to thank the management for the opportunity to host this earnings call.
We can now begin, the call with opening remarks from, Mr. Ashish Mehrotra post which we can open the proper questions.
Thank you and over to you, Mr. Ashish.
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