Annual Report 2025-26
About Northern Arc Capital Limited
Northern Arc has built a diversified financial services platform that operates through a dual-engine business model, Credit Solutions and Direct-to-Customer (D2C) Lending. Together, these businesses create an integrated credit ecosystem that enables the efficient flow of capital while generating insights, capabilities and opportunities that strengthen the entire franchise. Credit Solutions, the foundation of the Company, provides comprehensive financing solutions to Originator Partners through lending, debt placements, fund management and technology-enabled platforms.
Built over 16 years, the business has developed deep sector expertise, extensive credit data and strong investor relationships, creating a durable competitive advantage. Building on its strong foundation, the Company has scaled its D2C lending business across MSME, Consumer Finance and Rural Finance, leveraging deep credit expertise, proprietary underwriting models and a large addressable market to deliver sustainable, risk-adjusted returns. The integrated and diversified model enables dynamic capital allocation across segments based on risk-adjusted opportunities, supported by disciplined risk management and diversified earnings, enhancing resilience across credit cycles.
A strong domain expertise
Northern Arc is a customer-centric and product-agnostic business. Equipped with its deep understanding of diverse regional needs and expertise across core segments.
Serving customers a phygital model
Northern Arc serves its customers through a “phygital” model with a mix of branches and digital partners, enabling it to reach the under-served borrowers across India.
Differentiated underwriting processes
Our differentiated credit underwriting processes and risk models enables it to deliver strong asset quality and risk adjusted returns consistently across business cycles.
Key highlights of FY26
Our Value system
Vision
Our vision is to be a trusted platform that enables the flow of finance from capital providers to users in a reliable and responsible manner.
Mission
To enable access to finance for the underbanked in an efficient, scalable and reliable manner.
Our Values
Ethical
We adhere to a shared code of ethics and high standards of professional conduct.
Responsive
We are nimble and quick to adapt, learning and evolving as we go.
Innovative
We push the frontiers of finance through knowledge and innovation.
Empathetic
We understand the needs of our stakeholders and are aligned with them.
Resolute
We are unwavering in our commitments and stand by them.
Our Beliefs
Unstinted commitment to our sectors, clients, investors and the nation
Leading, through the creation of knowledge and expertise in the space we operate in
Using innovation as a tool to develop new products and processes for creating investment opportunities
Understanding risks and pricing them fairly
Skin-in-the-game and long-term incentivising as a means of building a stable platform for access to finance
Long-term growth and profitability as important ingredients for scalability