Northern Arc Capital Confirms No Deviation in IPO Proceeds Utilisation for Q4FY26

Northern Arc Capital has filed a formal intimation with BSE Limited and the National Stock Exchange of India Ltd. regarding the utilization of funds raised through its Initial Public Offering (IPO). The statement, dated May 08, 2026, confirms that there has been no deviation or variation in the use of the IPO proceeds during the quarter ended March 31, 2026.

The disclosure is made pursuant to Regulation 32(1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company clarified that no approvals were required to vary the objects of the issue as stated in the prospectus, as the funds were utilized strictly in accordance with the original allocation.

Details of Fund Utilisation

The company successfully raised capital through a public issue of equity shares. The key financial details regarding the fund raising and utilization are outlined below:

Particulars Details Mode of Raising Funds Public Issue-Initial Public Offer (IPO) Type of Instrument Equity Shares Date of Raising Funds September 23, 2024 Amount Raised (Net of Issue Proceeds) INR 4,498.45 Million Report Filed For Quarter ended March 31, 2026 Monitoring Agency CRISIL Ratings Limited

Compliance and Monitoring

CRISIL Ratings Limited served as the monitoring agency for the utilization of the funds raised. The statement explicitly notes that there was no deviation in the objects or purposes for which the funds were raised, nor was there any deviation in the amount of funds actually utilized against the original disclosures. Consequently, there are no financial variations to report for the half year according to the applicable objects.

The signed statement was submitted by Atul Tibrewal, Chief Financial Officer of Northern Arc Capital Limited, on May 08, 2026. The complete document is also available on the company's official website.

Northern Arc Capital Limited's board met on May 08, 2026, and approved the audited standalone and consolidated financial results for the fourth quarter and full year ended March 31, 2026. The company delivered a strong performance, with standalone net profit rising to 1.38B rupees in Q4 compared to 467M rupees in the same period last year, while Q4 standalone revenue grew to 7.3B rupees from 5.9B rupees year-on-year. Profit after tax (PAT) surged 251% year-on-year in Q4FY26, with credit costs declining sharply, reflecting improved asset quality and operational efficiency.

Q4FY26 and FY26 Financial Highlights

The company reported robust growth across key financial metrics for both the quarter and the full year. The following table presents the headline financial performance:

Metric: Q4FY26 YoY Change FY2026 YoY Change Standalone Net Profit: 1.38B Rupees vs 467M (YoY) — — Standalone Revenue: 7.3B Rupees vs 5.9B (YoY) — — Net Interest Income: Rs. 387 Cr +21% Rs. 1,377 Cr +20% Credit Cost: 2.2% -383 bps 2.8% -42 bps PAT: Rs. 133 Cr +251% Rs. 406 Cr +33% RoA: 3.3% +217 bps 2.8% +34 bps

Performance Analysis

Net Interest Income (NII), which represents the difference between interest earned and interest paid, grew 21% year-on-year to Rs. 387 Cr in Q4FY26, and 20% year-on-year to Rs. 1,377 Cr for the full year FY2026. This consistent double-digit growth in NII underscores the company's expanding lending operations and stable interest margins. The standout metric for the quarter was PAT, which rose 251% year-on-year to Rs. 133 Cr in Q4FY26, while full-year PAT grew 33% year-on-year to Rs. 406 Cr, reflecting a significant improvement in bottom-line profitability.

Asset Quality and Returns

Credit cost, a key indicator of asset quality, declined sharply by 383 basis points year-on-year to 2.2% in Q4FY26, and by 42 basis points year-on-year to 2.8% for FY2026. This meaningful reduction in credit costs signals improved portfolio health and lower provisioning requirements. Return on Assets (RoA) improved by 217 basis points year-on-year to 3.3% in Q4FY26, and by 34 basis points year-on-year to 2.8% for the full year, indicating enhanced efficiency in deploying assets to generate profits.

Regulatory Compliance and Earnings Call

The board meeting outcome and financial results have been disclosed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Following the results announcement, Northern Arc Capital held an earnings conference call on May 08, 2026, at 7:00 P.M. (IST). The audio recording of the call, covering the fourth quarter and financial year ended March 31, 2026, has been made available on the company's website. The disclosures were filed by Prakash Chandra Panda, Company Secretary & Compliance Officer of Northern Arc Capital.

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