Northern Arc Capital Q3 profit jumps 41% to ₹101.7 crore on strong AUM growth

Northern Arc Capital registered strong financial performance for the December 2025 quarter, with consolidated net profit increasing by 41% year-on-year to ₹101.70 crore, up from ₹72.18 crore in the same quarter of the previous fiscal. This growth was fueled by accelerated lending activity, higher interest earnings, and increased placement volumes.

The company’s lending assets under management (AUM) reached ₹15,121 crore as of December 31, 2025, marking a 23% increase from the prior year and 7% growth over the previous quarter. The share of direct-to-consumer lending expanded to 56%, demonstrating a broader diversification of its credit portfolio.

Net interest income grew significantly by 39% year-on-year (15% quarter-on-quarter) to ₹371 crore during Q3FY26, while fee and other income surged 49% year-on-year (50% sequentially) to ₹32 crore, underscoring improved profitability across business segments.

Provisioning coverage

The lender maintained stable asset quality with a gross NPA ratio of 1.36% and net NPA ratio of 0.69% as of December 2025. Provision coverage for Stage III assets remained at 49%, complemented by a strong capital adequacy ratio of 23.1%.

CEO Ashish Mehrotra highlighted two significant achievements: “We surpassed ₹15,000 crore in lending AUM and delivered the highest quarterly profit in our company’s history at ₹101 crore.” He attributed the growth to improving consumer demand following September’s GST revisions and December’s RBI repo rate cut, both contributing to the 23% annual AUM expansion.

Published on January 30, 2026