Northern ARC Capital's Q1 FY 2025-26 Quarter Results
- 30 Jul 2025
Result Summary
- Northern ARC Capital Ltd reported a 7.7% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 4.3%.
- Its expenses for the quarter were down by 6.1% QoQ and 1.5% YoY.
- The net profit decreased 8.5% QoQ and decreased 16.4% YoY.
- The earnings per share (EPS) of Northern ARC Capital Ltd stood at 5 during Q1 FY 2025-26.
Financial Statments for Q1 FY 2025-26
| (₹ crores) | Q1FY26 | Q4FY25 | Q1FY25 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 607.70 | 564.12 | 582.42 | 7.7% | 4.3% |
Total Expenses | 400.86 | 427.10 | 407.11 | -6.1% | -1.5% |
Profit Before Tax | 104.64 | 113.14 | 123.95 | -7.5% | -15.6% |
Tax | 26.12 | 28.30 | 29.84 | -7.7% | -12.5% |
Profit After Tax | 78.25 | 85.53 | 93.61 | -8.5% | -16.4% |
Earnings Per Share | 5.00 | 6.70 | 6.70 | -25.4% | -25.4% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Northern ARC Capital Ltd is a financial institution primarily involved in providing credit to under-served segments of the economy. The company operates within the financial services industry, focusing on lending, borrowing, and facilitating investments. Northern ARC Capital Ltd is known for its efforts to bridge the gap between investors and borrowers, offering a platform that caters to both parties' needs. The company has been active in driving financial inclusion and has developed a range of products and services tailored to meet the diverse financial requirements of its clients. As of the data available, there are no specific recent major developments to report.
Revenue
For the first quarter of fiscal year 2026 (Q1FY26), Northern ARC Capital Ltd reported a total income of ₹607.70 crores. This reflects an increase of 7.7% from the previous quarter (Q4FY25), where the total income was ₹564.12 crores. Compared to the same quarter in the previous year (Q1FY25), where the total income stood at ₹582.42 crores, there was a year-over-year growth of 4.3%. This upward trend in revenue indicates a positive movement in the company's income streams, driven by its operations in the financial services sector.
Profitability
The company's profit before tax for Q1FY26 was ₹104.64 crores, a decrease of 7.5% from the prior quarter (Q4FY25), where it was ₹113.14 crores. When compared to Q1FY25, profit before tax decreased by 15.6% from ₹123.95 crores. The profit after tax for Q1FY26 was ₹78.25 crores, which is down by 8.5% quarter-over-quarter and 16.4% year-over-year. Earnings per share (EPS) for Q1FY26 was reported at ₹5.00, representing a decrease of 25.4% from both the previous quarter and the same quarter last year, where EPS was ₹6.70. These figures reflect a decline in profitability despite the increase in revenue.
Operating Metrics
In the first quarter of fiscal year 2026, Northern ARC Capital Ltd managed to reduce its total expenses to ₹400.86 crores, marking a decline of 6.1% from the previous quarter (Q4FY25), where expenses were ₹427.10 crores. Compared to Q1FY25, expenses decreased by 1.5% from ₹407.11 crores. The tax expense for Q1FY26 was ₹26.12 crores, a reduction of 7.7% from Q4FY25 and 12.5% from Q1FY25. These reductions in expenses and taxes suggest a more efficient management of costs and tax liabilities. However, the decline in earnings per share and profitability metrics indicates that despite efficient cost management, there are other factors impacting the overall financial performance.