Northern Arc Capital Ltd
NSE: NORTHARC · Non Banking Financial Company (NBFC)
Snapshot
Unlock Northern Arc Capital Ltd's vital signs
Growth · Profitability · Valuation · Strength · Conviction
Company Overview
Business
Northern Arc Capital is a diversified non-banking financial company (NBFC) in India that provides credit solutions to underserved households and businesses. The company operates through financing, investment advisory, and investment management segments, supported by a proprietary technology stack.
Business Model
The company generates revenue through interest income from lending activities, fee-based income from advisory and syndication services, and management fees from its investment management business. It leverages digital platforms like Nimbus and NuScore to facilitate debt transactions and enhance underwriting efficiency.
Growth Outlook
Growth is driven by the expansion of its MSME, microfinance, and consumer finance portfolios, alongside the scaling of its technology-led co-lending and securitisation platforms. The company continues to focus on deepening its presence in rural and retail segments through strategic partnerships.
Key Risks
- Credit Risk. The company faces potential losses from defaults in its MSME and microfinance portfolios, particularly during periods of economic downturn.
- Regulatory Risk. As an NBFC, the company is subject to stringent and evolving regulations by the Reserve Bank of India which may impact its operational flexibility.
- Liquidity and Interest Rate Risk. Fluctuations in interest rates and access to cost-effective funding sources could adversely affect the company's net interest margins and profitability.
- Concentration Risk. Significant exposure to specific sectors or originator partners may lead to increased vulnerability if those segments experience systemic stress.
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Key Metrics
REVENUE
₹2,870 Cr
TTM · consolidated
NET PROFIT
₹439 Cr
TTM · consolidated
EPS
₹27.21
TTM · consolidated
RETURN ON EQUITY
12.0%
TTM · consolidated
P/E
9.6×
Q1 FY27 · consolidated
NET PROFIT MARGIN
14.6%
Q1 FY27 · consolidated
DEBT TO EQUITY
3.1%
Q1 FY27 · consolidated
Peers · Non Banking Financial Company (NBFC)
| Company | Mkt Cap | P/E (TTM) | EV/EBITDA | Rev Gr YoY | EBITDA Mgn | ROE | ROCE | 1Y Return |
|---|---|---|---|---|---|---|---|---|
Northern Arc Capital LtdNORTHARC | ₹4,222 Cr | 9.6× | — | 21.1% | — | 12.0% | — | -8.2% |
Fedbank Financial Services LimitedFEDFINA | ₹5,641 Cr | 12.9× | — | 21.3% | — | 14.8% | — | +3.2% |
MAS Financial Services LimitedMASFIN | ₹4,541 Cr | 10.9× | — | 22.7% | — | 14.0% | — | -21.9% |
SG FinserveSGFIN | ₹4,481 Cr | 22.3× | — | 104.6% | — | 14.0% | — | +77.4% |
Aye FinanceAYE | ₹3,278 Cr | 10.5× | — | — | — | 10.8% | — | — |
IndoStar Capital Finance LimitedINDOSTAR | ₹3,173 Cr | -8.1× | — | -0.5% | — | -10.0% | — | -23.5% |
As of Q1 FY27
Financials
Northern Arc Capital Ltd
NSE: NORTHARC · Non Banking Financial Company (NBFC)
Snapshot
Unlock Northern Arc Capital Ltd's vital signs
Growth · Profitability · Valuation · Strength · Conviction
Company Overview
Business
Northern Arc Capital is a diversified non-banking financial company (NBFC) in India that provides credit solutions to underserved households and businesses. The company operates through financing, investment advisory, and investment management segments, supported by a proprietary technology stack.
Business Model
The company generates revenue through interest income from lending activities, fee-based income from advisory and syndication services, and management fees from its investment management business. It leverages digital platforms like Nimbus and NuScore to facilitate debt transactions and enhance underwriting efficiency.
Growth Outlook
Growth is driven by the expansion of its MSME, microfinance, and consumer finance portfolios, alongside the scaling of its technology-led co-lending and securitisation platforms. The company continues to focus on deepening its presence in rural and retail segments through strategic partnerships.
Key Risks
- Credit Risk. The company faces potential losses from defaults in its MSME and microfinance portfolios, particularly during periods of economic downturn.
- Regulatory Risk. As an NBFC, the company is subject to stringent and evolving regulations by the Reserve Bank of India which may impact its operational flexibility.
- Liquidity and Interest Rate Risk. Fluctuations in interest rates and access to cost-effective funding sources could adversely affect the company's net interest margins and profitability.
- Concentration Risk. Significant exposure to specific sectors or originator partners may lead to increased vulnerability if those segments experience systemic stress.
Start your research today
Unlock AI insights, financials, peers and live data on Northern Arc Capital Ltd and 5,000+ companies — free.
Key Metrics
REVENUE
₹2,870 Cr
TTM · consolidated
NET PROFIT
₹439 Cr
TTM · consolidated
EPS
₹27.21
TTM · consolidated
RETURN ON EQUITY
12.0%
TTM · consolidated
P/E
9.6x
Q1 FY27 · consolidated
NET PROFIT MARGIN
14.6%
Q1 FY27 · consolidated
DEBT TO EQUITY
3.1%
Q1 FY27 · consolidated
Peers · Non Banking Financial Company (NBFC)
As of Q1 FY27