Northern Arc Capital Ltd (NORTHARC) Q2FY26 Concall Summary - Sep-2025 Qtr
Performance Overview
- The company demonstrated resilient performance with Assets Under Management (AUM) growing by 15% YoY and 6% QoQ, reaching INR 14,166 crores, signaling early signs of a positive momentum shift.
- Excluding the consciously calibrated rural finance book, the core business grew by a robust 22% YoY, driven primarily by the Direct-to-Customer (D2C) segment, which now constitutes 54% of the total AUM.
- Asset quality remained stable with GNPA at 1.15% and NNPA at 0.56%, while credit costs improved sequentially to 2.7% in Q2 from 3.0% in Q1, staying within the company's guidance.
- Profitability saw a notable improvement, with Profit After Tax (PAT) increasing by 13% QoQ to INR 92 crores, leading to an enhanced ROA of 2.6% and ROE of 10.1%.
- The company successfully managed its borrowing costs, achieving a 40 basis point sequential decline in its cost of funds to 8.5%, which contributed to a 40 basis point expansion in Net Interest Margin (NIM) to 5.3%.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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