Northern Arc Capital FY26 PAT up 33%; Q4 jumps 251%

What Northern Arc Capital reported

Northern Arc Capital announced audited financial results for the quarter and year ended March 31, 2026, showing a sharp jump in profitability in the March quarter. The company reported consolidated Profit After Tax (PAT) of ₹406 crore for FY26, a 33% increase year-on-year. For Q4 FY26, consolidated PAT surged 251% year-on-year to ₹133 crore. Alongside the profit growth, the company reported higher net interest income (NII) and an increase in net revenue for the quarter. The results were approved by the board in a meeting held on May 08, 2026.

Q4 FY26 performance stood out

The March quarter was marked by a steep acceleration in earnings compared with the year-ago period. Q4 FY26 consolidated PAT came in at ₹133 crore, reflecting a 251% year-on-year jump. NII for the quarter rose 21% year-on-year to ₹387 crore. Net revenue for Q4 FY26 increased 18% year-on-year to ₹414 crore. Separately, the company’s standalone disclosures in the same information set also indicated Q4 standalone net profit of ₹138 crore, compared with ₹46.7 crore in the corresponding quarter last year. Q4 standalone revenue was reported at ₹730 crore versus ₹590 crore a year earlier.

Full-year FY26 numbers: PAT ₹406 crore, NII ₹1,377 crore

For FY26, Northern Arc Capital’s consolidated PAT was reported at ₹406 crore, up 33% from the previous year. Full-year NII was ₹1,377 crore, representing a 20% year-on-year increase. The combination of higher NII and the outsized Q4 profit growth indicates a strong finish to the year, based on the audited results disclosed. The data points provided also referenced declining credit costs in Q4, tied to improved asset quality and operational efficiency, though the specific credit-cost figure cited for the year was 2.8%.

Standalone versus consolidated: what the release highlighted

The information set included both consolidated performance metrics and standalone headline numbers. While consolidated Q4 PAT was disclosed at ₹133 crore, standalone net profit for Q4 was presented at ₹138 crore. Similarly, Q4 net revenue (₹414 crore) was reported alongside standalone revenue (₹730 crore), indicating different line items and reporting scopes. Readers should note that standalone revenue and consolidated net revenue are not directly comparable without the full statement structure. Still, both sets of numbers pointed to year-on-year expansion and a strong March quarter.

Sequential context from earlier quarters in FY26

The disclosures also included performance context from earlier quarters of FY26. In Q3 FY26, Northern Arc Capital reported PAT of ₹101 crore, up 33% year-on-year and 10% quarter-on-quarter, with Q3 NII of ₹371 crore (up 39%). For Q3, net revenue including fee income was cited at ₹403 crore, and operating profit at ₹265 crore. Earlier in the year, Q2 FY26 NII was stated at ₹322 crore (up 12% year-on-year and 8% quarter-on-quarter), while Q2 PAT rose 13% quarter-on-quarter to ₹92 crore, compared with ₹81 crore in Q1 FY26. Separately, one data point in the same set noted a Q3 FY26 PAT of ₹95 crore, indicating that multiple summaries were circulating; the audited FY26 and Q4 FY26 figures were consistently highlighted as ₹406 crore and ₹133 crore, respectively.

IPO proceeds disclosure

Northern Arc Capital also reported that there was no deviation or variation in the utilisation of its IPO proceeds for the quarter ended March 31, 2026. The statement was dated May 08, 2026. Such disclosures are watched closely because they help investors track whether funds raised are being deployed as per stated objectives.

Key figures at a glance

Market-relevant factors investors will track

The sharp rise in Q4 PAT was accompanied by commentary that credit costs declined sharply, pointing to an improvement in asset quality and operating efficiency in the period. One market update in the information set also cited a net interest margin of 9.8% in Q4 FY26 and credit cost of 2.8% for FY26. Asset quality markers referenced for Q3 included GNPA of 1.36% and NNPA of 0.69%. Another cited operational milestone was that assets under management crossed ₹15,000 crore during the year, and one snippet referenced AUM of ₹16,594 crore. While these numbers were not presented as part of a single audited table in the provided text, they frame what investors typically assess alongside profitability: margins, funding costs, and credit performance.

Why the FY26 print matters

For a lending-focused business, the mix of NII growth and the trajectory of credit costs can materially change bottom-line outcomes. FY26 NII growth of 20% to ₹1,377 crore, combined with the sharp Q4 profitability jump, suggests that the March quarter had a materially different profit profile versus earlier quarters. The sequential context (Q2 PAT ₹92 crore, Q3 PAT ₹101 crore, and Q4 PAT ₹133 crore on the consolidated number provided) points to an improving run-rate through the year. The no-deviation statement on IPO proceeds adds a governance datapoint for investors tracking post-issue fund deployment.

What to watch next

The company’s latest disclosures relate to audited financials up to March 31, 2026, approved by the board on May 08, 2026. The next focus for investors is how these trends develop in the first half of FY27, particularly whether NII growth sustains and whether credit costs remain contained. Any subsequent quarterly filing will provide clearer comparability between standalone and consolidated line items such as revenue, net revenue, and profitability.