Q1 2027 Northern ARC Capital Ltd Earnings Call Transcript
Key Points
- Northern Arc Capital Ltd (NSE:NORTHARC) reported a profit after tax of 114 crores for the quarter, marking a strong 41% growth year-over-year.
- The company's assets under management grew by 26% year-over-year to 16,855 crores, driven by significant growth in the direct lending business.
- The direct-to-customer portfolio grew by more than 50% year-over-year, reflecting the company's strategic focus on building a granular, diversified retail lending franchise.
- Northern Arc Capital Ltd (NSE:NORTHARC) received an outstanding ESG rating from ICRA, with a score of 81, placing it among the highest-rated financial institutions.
- Collection efficiencies remained robust at 99.6% in June 2026, with key states such as Tamil Nadu and Karnataka demonstrating strong continued momentum.
- The global economic environment remains uncertain, with geopolitical tensions and volatility in energy prices posing challenges.
- Despite strong growth, the company faces near-term headwinds due to evolving trade relationships and complexities in the inflation and interest rate outlook.
- The microfinance sector, although showing signs of recovery, has been under prolonged stress, affecting overall market conditions.
- There are concerns about the potential impact of El Niño on monsoon and rural economic activity, which could affect future performance.
- The company's incremental cost of funds remains stable but could face upward pressure due to potential repricing of debt in the coming quarters.
Ladies and gentlemen. Good day, and welcome to the Northern Arc Q1 FY27 earnings conference call hosted by ICICI Securities Limited. (Operator Instructions)
I now hand the conference over to Mr. Chintan Shah from ICICI Securities. Thank you, and over to you, sir.
Yeah, thank you, Rio. So good evening, everyone, and welcome to the Q1 and for 27 results conference call of Northern Capital Limited. First of all, I would like to thank the Northern Capital Management for giving us the opportunity to host their call. And also congratulate them for a very strong set of numbers.
Yeah, from management now, we have Mr. Ashish Mehrotra, Managing Director and Chief Executive Officer, Mr. Atul Tabriwal, Chief Financial Officer, Mr. Fardas RP Ralabandi, Group Risk Office and Governance. And lastly, Mr. Chetan Parmar, Head Investor Relations.
So now, without further ado, I would like to hand over the call to Mr. Ashish. Thank you, and over to you, sir.
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