Finance company Northern Arc Capital announced Q1FY26 results Pre-provision operating profit (PPoP) grew by 18% YoY to Rs 207 crore for Q1FY26 Profit after tax was Rs 81 crore for Q1FY26 compared to Rs 38 crore for Q4FY25 Lending Assets Under Management (AUM) grew by 12% YoY to Rs 13,351 crore Gross NPA and Net NPA ratio was 1.13% and 0.56% respectively as on June 30, 2025 Performing credit Fund AUM grew by 15% YoY to Rs 3,174 crore as on June 30, 2025 Networth grew by 27% YoY to Rs 3,532 crore Healthy capital adequacy ratio of 25.5% as on June 30, 2025. Net Interest Income grew by 10% YoY to Rs 298 crore in Q1FY26 Fee & Other income grew by 8% YoY to Rs 27 crore in Q1FY26 Return on Assets for Q1FY26 was 2.4% Provisioning coverage ratio on Stage III assets was 50% on June 30, 2025 MD & CEO Ashish Mehrotra said, “FY25 was a challenging year for the lending industry, but we enter FY26 with cautious optimism. Early signs of recovery are emerging, driven by strengthening macro fundamentals in the form of rising consumption, increased corporate capex, and a favourable monsoon outlook, alongside a regulatory push toward improved liquidity through rate cuts and a gradually normalizing credit environment, especially in the MFI segment outside Karnataka. At Northern Arc, our fee-based businesses continue to gain momentum, with core fee income growing 24% YoY against a 12% balance sheet expansion reflecting our strategic focus on building a solutions-led credit ecosystem. Excluding rural finance, where exposure remains calibrated, AUM grew 20% YoY. In rural finance, asset quality is stabilizing, with 0+ PAR reverting to March 2024 levels at 0.5%. We expect growth momentum to strengthen in the second half, supported by an improving credit cycle and liquidity.” Result PDF