Northern Arc Capital Limited , a leading diversified Non-Banking Financial Company (NBFC), has confirmed the dispatch of its postal ballot notice on December 24, 2025, seeking shareholder approval for key board appointments. The company previously announced strong financial results for the second quarter ended September 30, 2025, showcasing steady growth across key parameters.

Financial Performance Highlights

The company's financial metrics demonstrate consistent growth across key parameters:

Postal Ballot Notice Dispatch Confirmed

The company has officially dispatched the postal ballot notice dated December 13, 2025, to shareholders through electronic mode. The notice seeks approval for two key board appointments through the remote e-voting process:

Ms. Vidya Krishnan brings extensive expertise in banking, information technology, digital transformation, and business leadership across retail, wholesale, and investment banking. She holds an MBA in Finance and is a Certified Associate of the Indian Institute of Bankers (CAIIB).

Ms. Anuradha Rao has approximately 36 years of experience in banking and finance, having previously worked at the State Bank of India and served as Managing Director and CEO of SBI Funds Management Private Limited. She previously served as an Independent Director of the company for two consecutive terms from October 2019 to October 2025.

E-Voting Schedule and Process

The e-voting facility is being provided by National Securities Depository Limited (NSDL), and the notice is available on the company's website and stock exchange platforms.

Operational Performance

Direct to Customer (D2C) lending increased to 54% of the total AUM. Excluding rural finance, where exposure remains calibrated, D2C AUM grew 32% year-on-year to ₹6,718.00 crore. Performing Credit Fund AUM grew by 14% year-on-year to ₹3,198.00 crore, while placement volumes for H1FY26 were ₹5,399.00 crore.

Management Commentary

Ashish Mehrotra, MD & CEO, commented: "We are witnessing early signs of a credit revival, supported by the repo rate cuts earlier this year and the Government's recent stimulus through GST rate reductions. Our AUM grew 15% YoY and 6% QoQ to ₹14,166 crore. The D2C AUM grew 17% YoY, and excluding rural finance — where exposure remains calibrated — D2C AUM growth stood at a strong 32% YoY."

The company remains confident of achieving its guided AUM growth of 18–20% and Return on Assets (RoA) of around 2.80% for FY26. Northern Arc Capital continues to empower underserved individuals and businesses, having facilitated the financing of over ₹2.30 trillion cumulatively since 2009, impacting the lives of over 129 million people across India.

Northern Arc Capital Limited (NSE/BSE: NORTHARC) has witnessed a significant change in its shareholding structure as Catalyst Trusteeship Limited released 40,55,000 equity shares from pledge. The shares, previously held as security for Non-Convertible Debentures (NCDs) issued by Dvara Holdings, were released back to the latter in multiple tranches between April and September 2025.

Impact on Shareholding

The release of shares has resulted in a notable decrease in Catalyst Trusteeship's encumbered shareholding in Northern Arc Capital. Prior to the release, Catalyst Trusteeship held 5.14% of the total share capital, which has now reduced to 2.63%.

Release Details

The share release was executed across several dates:

• April 8, 2025
• May 2, 2025
• June 11, 2025
• July 1, 2025
• September 22, 2025

Catalyst Trusteeship Limited acted in its capacity as the Debenture Trustee for Dvara Holdings' debenture holders throughout this process.

Company Overview

Northern Arc Capital Limited, listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), has a total equity share capital of 16,14,11,836 shares, each with a face value of INR 10.00. The company's diluted share capital stands at 16,72,89,926 equity shares.

Regulatory Compliance

This transaction was disclosed in accordance with Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The disclosure, filed on September 24, 2025, provides transparency regarding the changes in substantial shareholding of Northern Arc Capital Limited.

Market Implications

While the release of pledged shares does not directly impact Northern Arc Capital's operations, it represents a significant shift in the company's shareholding pattern. Investors and market analysts may view this development as a positive sign, potentially indicating improved financial health for Dvara Holdings, which was able to secure the release of its pledged shares.

As Northern Arc Capital continues to navigate the financial landscape, stakeholders will likely keep a close eye on any further developments in its ownership structure and strategic direction.