Now Reading: Northern Arc Capital posts record Q1 profit, stock slips 4.9%
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Northern Arc Capital posts record Q1 profit, stock slips 4.9%
Northern Arc Capital reported its highest-ever first-quarter profit, with net profit rising 41% year-on-year to ₹114 crore in Q1FY27, The Hindu Business Line reports. Net interest income grew 32% to ₹394 crore,…
The Story in Brief
Northern Arc Capital reported its highest-ever first-quarter profit, with net profit rising 41% year-on-year to ₹114 crore in Q1FY27, The Hindu Business Line reports. Net interest income grew 32% to ₹394 crore, and lending assets under management expanded 26% to ₹16,855 crore. Direct-to-customer lending crossed ₹10,000 crore for the first time. Asset quality improved, with gross NPA at 1.0% and net NPA at 0.5%. However, the stock fell 4.92% on Tuesday to close at ₹285.35, giving a market capitalisation of about ₹4,639 crore. CEO Ashish Mehrotra flagged geopolitical risks and potential El Niño disruptions.
The Indian Opinion
The profit jump and asset quality improvement are impressive, but the stock's sharp fall shows markets are not easily impressed. A common narrative blames 'sell on news' behaviour, but the real test is whether the company can sustain double-digit return on equity and contain credit costs within its guided range. The CEO's caution on geopolitical and weather risks is a reminder that past performance is no guarantee. Watch if the stock recovers above ₹300 in the coming weeks, or if profit-taking continues.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
