Northern Arc reports strong Q2FY25 results with 74% PPoP growth

Northern Arc reported strong Q2FY25 results, with pre-provision operating profit (PPoP) rising 74% year-over-year (YoY) to INR 212 crore and profit after tax growing 24% YoY to INR 98 crore. Lending Assets Under Management (AUM) expanded 22% YoY to INR 12,309 crore, with disbursements up by 23% YoY to INR 5,035 crore and Direct to Customer lending increasing to 52% from 43% YoY. Net Interest Income saw a 47% YoY increase to INR 288 crore, while Fee & Other income rose 29% YoY to INR 26 crore.

Commenting on the results, MD & CEO Ashish Mehrotra stated, “We are pleased to report another strong quarter of financial results, reflecting the resilience and effectiveness of our strategy. While we recognize the headwinds in today’s landscape, we remain dedicated to executing our vision with operational discipline.” Asset quality was solid, with a Gross NPA ratio of 0.60% and Net NPA at 0.18%, supported by a provisioning coverage of 72% on Stage III assets.

Mehrotra emphasized continued growth in MSME and key sectors while cautiously managing the MFI segment, confident that their diversified model and disciplined approach will sustain strong performance.