Northern Arc Capital Limited, a leading player in India's diversified NBFC sector, has announced a significant change in its senior leadership team. The company disclosed that Umasree Parvathy Pratap will be retiring from her position as Chief People Officer, effective October 31, 2025, due to superannuation. Stepping into this crucial role will be Moushumi Mandal, who has been appointed as the new Chief People Officer, effective November 1, 2025.

A Wealth of Experience

Moushumi Mandal brings to Northern Arc Capital a rich tapestry of experience spanning 25 years, with 18 years dedicated to the financial and technology sectors. Her career includes notable stints at global financial institutions such as JPMorgan and Citibank. Prior to joining Northern Arc, Mandal served as the Vice President of HR at the National Stock Exchange of India Limited and held the position of Vice President at Citibank N.A.

Global Perspective

One of Mandal's key strengths is her extensive international exposure. Her career has taken her across multiple geographies, including India, Sri Lanka, Bangladesh, Japan, Singapore, Hong Kong, Australia, and New York. This global perspective is expected to be valuable as Northern Arc Capital continues to grow and evolve in the dynamic financial services landscape.

Educational Background

Mandal's academic credentials are equally impressive. She holds a degree in Microbiology and a postgraduate degree in Management, specializing in Human Resources, from Mumbai University.

Seamless Transition

The company has ensured a smooth transition in this critical role. Umasree Parvathy Pratap, the outgoing Chief People Officer, will conclude her tenure on October 31, 2025, with Moushumi Mandal taking the reins the very next day. This seamless handover is designed to maintain continuity in the company's human resource strategies and initiatives.

Looking Ahead

As Northern Arc Capital continues its journey as a key player in India's financial services sector, the appointment of Moushumi Mandal as Chief People Officer signals the company's commitment to strengthening its leadership team. Her diverse experience across multiple geographies and sectors is expected to bring fresh perspectives to the company's human resource management and contribute to its growth trajectory.

This leadership change comes at a time when the financial sector is undergoing rapid transformation, driven by technological advancements and changing market dynamics. Mandal's blend of experience in both finance and technology sectors positions her well to guide Northern Arc Capital's workforce through these evolving landscapes.

Northern Arc Capital Limited , a leading diversified non-banking financial company (NBFC), has announced its financial results for the second quarter of fiscal year 2026, demonstrating resilient growth amid a gradually improving economic environment.

Key Highlights

• Profit After Tax (PAT) for Q2 FY26 grew by 13% quarter-on-quarter to INR 92.00 crore
• Lending Assets Under Management (AUM) increased by 15% year-on-year and 6% quarter-on-quarter to INR 14,166.00 crore
• Credit cost improved to 2.7% in Q2 FY26 compared to 3.0% in Q1 FY26
• Gross NPA and Net NPA ratios remained stable at 1.15% and 0.56% respectively
• Networth grew by 10% year-on-year to INR 3,663.00 crore as of September 30, 2025
• Capital adequacy ratio stood at a healthy 24.6% as of September 30, 2025

Financial Performance

Northern Arc Capital's financial performance in Q2 FY26 reflects its strategic focus on sustainable growth and asset quality management. The company's Net Interest Income (NII) grew by 12% year-on-year and 8% quarter-on-quarter to INR 322.00 crore. The Net Interest Margin (NIM) improved by 37 basis points quarter-on-quarter to 9.3% in Q2 FY26, indicating improved profitability on its lending operations.

The company's operating expenses ratio stood at 3.7% for Q2 FY26, reflecting its efforts to maintain operational efficiency. The Pre-Provision Operating Profit (PPoP) for the quarter was INR 213.00 crore.

Asset Quality and Provisioning

Northern Arc Capital has maintained a stable asset quality profile, with Gross NPA and Net NPA ratios remaining unchanged at 1.15% and 0.56% respectively. The company's credit cost improved to 2.7% in Q2 FY26 from 3.0% in the previous quarter, indicating better risk management and collection efficiency.

Business Growth

The company's lending AUM grew by 15% year-on-year and 6% quarter-on-quarter to INR 14,166.00 crore as of September 30, 2025. Notably, the share of Direct to Customer (D2C) lending in the AUM increased to 54%, reflecting the company's focus on retail lending. Excluding rural finance, where exposure remains calibrated, the D2C AUM grew by 32% year-on-year to INR 6,718.00 crore.

Northern Arc Capital's Performing Credit Fund AUM also showed strong growth, increasing by 14% year-on-year to INR 3,198.00 crore as of September 30, 2025.

Management Commentary

Ashish Mehrotra, MD & CEO of Northern Arc Capital, commented on the results: "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. A normal monsoon is expected to further strengthen rural demand and stability. We are confident that these measures and developments will lead to better credit uptake in the second half of this year."

He further added, "Credit cost improved to 2.7% from 3.0% in Q1FY26, driven by a revival in consumption trends and an improving economic environment, which strengthened collections in the Consumer Finance segment. We also saw a decline in MFI provisions, supported by portfolio calibration and the fact that 80% of the MFI book now comprises loans originated post the MFIN guardrails, with 40% covered under Credit Guarantee Fund for Micro Units (CGFMU)."

Outlook

With the positive trends observed in Q2 FY26, Northern Arc Capital remains confident of achieving its guided AUM growth of 18-20% and Return on Assets (RoA) of around 2.8% for FY26. The company's focus on sustainable lending practices and long-tenured retail products is expected to help stabilize delinquencies and support future growth.

As Northern Arc Capital continues to navigate the evolving economic landscape, its strong capital position, improving asset quality, and strategic focus on retail lending position it well for sustained growth in the coming quarters.

Note: All financial figures are in Indian Rupees (INR) unless otherwise stated.