Northern Arc Capital Limited is a prominent diversified financial services platform dedicated to addressing the credit needs of underserved households and businesses across India. Originally incorporated as Highland Leasing & Finance Private Limited on March 9, 1989, the company has undergone significant transformations, including name changes to IFMR Capital Finance Private Limited in 2009, conversion to a public limited company as IFMR Capital Finance Limited in 2017, and its final rebranding to Northern Arc Capital Limited in February 2018.
Over the past 15 years, Northern Arc Capital has played a pivotal role in facilitating financing exceeding ₹1.73 lakh crore, positively impacting the lives of over 10.18 crore individuals. The company's comprehensive suite of solutions encompasses lending, placements, and fund investments across critical sectors such as MSME financing, Microfinance Institutions (MFI), consumer financing, vehicle financing, affordable housing financing, and agricultural supply chain finance. As of March 31, 2025, Northern Arc Capital manages an Assets Under Management (AUM) of Rs 16,792 crore through its balance sheet and active Alternative Investment Funds (AIFs). It operates as a diversified Non-Banking Financial Company (NBFC), offering lending and advisory services focused on personal, business, and mortgage loans, alongside robust investment management and portfolio services.
Northern Arc Capital Limited's market capitalization stood at ₹3,872.69 crore as of July 4, 2025. The stock has demonstrated a 52-week high of ₹350 and a 52-week low of ₹141.47. The company's Price-to-Earnings (P/E) ratio is currently 12.72.
For the fourth quarter ended March 2025 (Q4 FY25), Northern Arc Capital reported a consolidated net profit of Rs 37.76 crore. This represents a decline of 57.48% compared to Rs 88.81 crore in the corresponding quarter of the previous year. Total income for Q4 FY25 saw an increase of 7.42%, reaching Rs 606.72 crore, up from Rs 564.76 crore in Q4 FY24.
For the full financial year 2024, Northern Arc Capital posted a net profit of Rs 317.69 crore on a total income of Rs 1,891.01 crore. The company has exhibited consistent profitability over the years, with a notable year-on-year increase in net profit of 34.2% for the full year.
- Q4 FY2024-25 Performance: Net Profit of Rs 37.76 crore, Total Income of Rs 606.72 crore.
- Full Year FY2024 Performance: Net Profit of Rs 317.69 crore, Total Income of Rs 1,891.01 crore.
- Net Interest Margin: Increased from 41.1% in FY23 to 64.1% in FY24.
- Net Profit Margin: Fell from 17.6% in FY23 to 16.3% in FY24.
- Debt-to-Equity Ratio: Stood at 0.6 for FY24, compared to 0.3 in FY23.
- Return on Capital Employed (ROCE): Improved to 11.30% in FY24 from 10.53% in FY23.
- Asset Quality: Maintains strong asset quality with a Gross Non-Performing Asset (NPA) ratio of 0.0% as of March 31, 2024.
Northern Arc Capital's strategic focus lies in its diversified financial services model, catering to the credit needs of underserved segments. The company's ability to facilitate significant credit flows, coupled with its expansive operational reach, positions it as a key player in India's financial inclusion drive. Its diverse product offerings and deep understanding of various market segments allow it to effectively serve a broad customer base.
Northern Arc Capital has received approval from the Reserve Bank of India (RBI) in June 2025 to commence and carry on the factoring business, marking a significant expansion of its operational scope.
In terms of shareholding changes, asset manager 360 ONE exited its entire 12.09% stake in Northern Arc Capital on June 20, 2025, through open market deals. This involved the sale of 1.94 crore shares at prices ranging between Rs 195.71 and Rs 198.74, with a total transaction value exceeding Rs 382 crore.
Over the past five years, Northern Arc Capital has demonstrated robust revenue growth, with an annual rate of 30%, significantly outperforming the industry average of 12.16%. The company's market share has also seen a considerable increase, growing from 0.63% to 1.67% over the same period. This superior growth performance relative to industry peers solidifies its position as a significant player in the diversified financial services sector.
Northern Arc Capital's strategic emphasis on underserved markets, combined with its strong financial performance and continuous expansion of service offerings, makes it a notable entity in India's financial services landscape. The company's unwavering commitment to financial inclusion and its proven track record in channeling substantial credit to underserved segments underscore its critical role within the Indian financial ecosystem.
```
```
