NORTHARCNorthern Arc Capital Ltd.
Northern Arc Capital Q2 FY27 Results: Consolidated Net Profit ₹129 Crore on Total Income of ₹874 Crore
- Earnings
- NBFC lending
Reviewed byKeshav SehgalBlacklitt Research
Northern Arc Capital (NSE: NORTHARC) reported consolidated total income of ₹873.81 crore and net profit of ₹129.48 crore for the quarter ended 30 Sep 2026, and standalone total income of ₹862.37 crore and net profit of ₹133.98 crore, it said in a filing on 03 Nov 2026.
Key highlights
Consolidated
Including its subsidiaries
- Total income: ₹873.81 crore, up 39.0% YoY and 11.6% QoQ
- Net profit and EPS: ₹129.48 crore; basic EPS ₹8.00, up 40.8% YoY
- Finance costs: ₹280.41 crore, up 34.7% YoY and 11.8% QoQ
- Net profit margin: 14.82%, up 0.35 percentage points YoY
Standalone
The company on its own, without its subsidiaries
- Total income: ₹862.37 crore, up 42.0% YoY and 12.0% QoQ
- Net profit and EPS: ₹133.98 crore; basic EPS ₹8.29, up 41.2% YoY
- Finance costs: ₹278.60 crore, up 35.4% YoY and 76.4% QoQ
- Net profit margin: 15.54%, down 0.07 percentage points YoY
Summary
| Particulars | Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ |
|---|---|---|---|---|---|
| 873.81 | 628.70 | +39.0% | 782.82 | +11.6% | |
| Revenue from operations | 868.71 | 627.45 | +38.5% | 779.77 | +11.4% |
| Other income | 5.10 | 1.25 | +309.1% | 3.05 | +67.3% |
| 129.48 | 90.98 | +42.3% | 114.10 | +13.5% | |
| Profit before tax | 173.36 | 120.97 | +43.3% | 152.94 | +13.4% |
| Finance costs | 280.41 | 208.21 | +34.7% | 250.83 | +11.8% |
| Depreciation | 4.34 | 4.97 | -12.6% | 3.97 | +9.4% |
| Tax expense | 43.88 | 29.99 | +46.3% | 38.84 | +13.0% |
| Net profit margin | 14.82% | 14.47% | +0.35 pp | 14.58% | +0.24 pp |
| EPS, basic (₹) | 8.00 | 5.68 | +40.8% | 7.08 | +13.0% |
Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.
Consolidated net profit rose 42.3% year on year, faster than total income at 39.0%. Profit before tax grew 43.3%, so the tax line did not hold profit back relative to pre-tax profit; tax expense rose 46.3% to ₹43.88 crore, a rate of 25.3% of profit before tax against 24.8% a year earlier.
Finance costs of ₹280.41 crore are 32.1% of total income this quarter, up from ₹208.21 crore a year earlier. Other income of ₹5.10 crore is 0.6% of total income and 2.9% of profit before tax, against ₹1.25 crore in the year-earlier quarter, so the bulk of income is from revenue from operations.
The notes add a further ECL overlay of ₹73.63 crore as at 30 Sep 2026, up from ₹66.03 crore at 31 Mar 2026, on unsecured retail lending to MSMEs and individuals, including microfinance. The notes say the overlay will be reassessed periodically; the filing does not say whether or when it will be released.
| Particulars | Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ |
|---|---|---|---|---|---|
| 862.37 | 607.49 | +42.0% | 770.20 | +12.0% | |
| Revenue from operations | 858.26 | 606.27 | +41.6% | 767.50 | +11.8% |
| Other income | 4.11 | 1.22 | +235.9% | 2.70 | +52.0% |
| 133.98 | 94.78 | +41.4% | 121.80 | +10.0% | |
| Profit before tax | 180.61 | 127.22 | +42.0% | 162.78 | +11.0% |
| Finance costs | 278.60 | 205.78 | +35.4% | 157.98 | +76.4% |
| Depreciation | 3.88 | 4.42 | -12.2% | 3.48 | +11.6% |
| Tax expense | 46.63 | 32.44 | +43.8% | 40.98 | +13.8% |
| Net profit margin | 15.54% | 15.60% | -0.07 pp | 15.81% | -0.28 pp |
| EPS, basic (₹) | 8.29 | 5.87 | +41.2% | 7.54 | +9.9% |
Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.
Standalone net profit rose 41.4% year on year, slower than total income at 42.0%, and profit before tax rose 42.0%. Standalone net profit of ₹133.98 crore is ₹4.50 crore above consolidated net profit, and standalone total income is ₹11.44 crore below consolidated.
Standalone finance costs of ₹278.60 crore are 32.3% of total income and rose 76.4% from the June quarter's ₹157.98 crore, while the year-earlier quarter was ₹205.78 crore. Other income of ₹4.11 crore is 2.3% of profit before tax of ₹180.61 crore.
The standalone notes record a reclassification of about ₹158.90 crore of loans from amortised cost to FVOCI, with a fair value gain of ₹1.71 crore recognised in other comprehensive income. The company also reports a capital adequacy ratio of 20.78% and a gross stage 3 assets ratio of 1.38% for the half year.
Inference
The filing reports 2,39,000 equity shares allotted under the Employee Stock Option Schemes 2016 and 2018 in the half year, and ₹75 crore of non-convertible debentures raised by private placement on 31 Jul 2026, with no deviation in use of funds reported. The Board approved the re-appointment of Mr. Ashish Mehrotra as Managing Director and Chief Executive Officer for five years from 1 Apr 2027, subject to shareholder approval.
The filing does not state the reason for the year-on-year rise in finance costs, the reason for reclassifying loans to FVOCI, or the basis of the Fin Reach disposal consideration, and it does not say whether the ECL overlay will be released.
Filed with BSE on . Reference: Original filing (PDF)
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