Finance company Northern Arc Capital announced Q4FY25 & FY25 results Net Interest Income grew by 33% YoY to Rs 1,147 crore in FY25 & 39% YoY to Rs 320 crore in Q4FY25 Fee & Other income was Rs 102 crore in FY25 and Rs 30 crore in Q4FY25 Opex ratio improved by 40 bps YoY to 3.6% in FY25 PPoP grew by 46% YoY to Rs 791 crore in FY25 and 66% YoY to Rs 229 crore in Q4FY25 Credit cost was Rs 405 crore for FY25 and Rs 194 crore in Q4FY25 Profit after tax for FY25 was flat YoY at Rs 305 crore and Rs 38 crore in Q4FY25. The performance was impacted mainly due to one-time provision of Rs 68 crore in Q4FY25. Excluding this one-time provision, PAT would have been Rs 356 crore for FY25, up 15% YoY Return on Assets for FY25 was 2.4% for FY25 Return on Equity was 10.0% for FY25. Raised fresh equity capital of Rs 882 crore in FY25 Commenting on the Q4FY25 & FY25 results MD & CEO Ashish Mehrotra said, "We are pleased to report a resilient performance in FY25, with AUM growing by 16% to Rs 13,634 crore and a profit of Rs 305 crore. This performance, delivered in a challenging environment, is a testament to the strength and adaptability of our diversified business model. The year was marked by macroeconomic and sectoral headwinds, along with a tightened credit environment, which had a moderating effect on overall performance. Despite these pressures, our disciplined and proactive approach to risk management allowed us to protect the quality of our portfolio. In fact, had we not taken a prudent one-time provision of Rs 68 crore on account of regulatory guidance on Default Loss Guarantee accounting, our profit would have reflected a 15% year-on-year growth highlighting the underlying robustness of our business. As we look ahead to FY26, we are cautiously optimistic. Early signs of recovery and an easing interest rate environment point to improving economic momentum. We believe this will translate into a stronger credit landscape, creating opportunities for sustainable growth. With our strong fundamentals and strategic positioning, we are confident in our ability to capitalise on these tailwinds and continue serving as an enabler for India’s growing economy." Result PDF