Northern Arc Capital is gearing up for its next phase of growth by deepening its technology-led credit ecosystem, expanding its direct-to-customer lending business and exploring new opportunities in digital distribution and wealth management.
In his message to shareholders in the company’s Annual Report 2026, Managing Director & CEO Ashish Mehrotra said the company’s long-term strategy is anchored on three enduring principles, Strengthen, Grow and Reimagine, which have helped build a differentiated and scalable financial services platform.
Three-pronged growth strategy
Mehrotra said Northern Arc has spent the past 16 years building one of India’s most differentiated Credit Solutions platforms that connects originators, lenders and investors through a technology-driven ecosystem.
“We believe this franchise represents a unique and durable competitive advantage, one that is difficult to replicate given the relationships, capabilities, data and trust that have been built over time,” he said.
Having established this foundation, the company is now focused on expanding its direct-to-customer lending business by leveraging the underwriting expertise, data insights and ecosystem advantages created through its Credit Solutions platform.
The third strategic pillar is to reimagine customer engagement through technology-led lending, digital distribution and expansion into asset and wealth management solutions.
Building sustainable competitive advantages
According to Mehrotra, the integrated strategy has enabled Northern Arc to build a diversified institution where multiple business lines reinforce one another, creating a scalable growth engine.
“The outcomes we are delivering today, in our financial performance, the quality of our franchise and the confidence of our stakeholders, reinforce our conviction that this strategy is creating long-term value and positioning Northern Arc for its next phase of growth,” he said.
Investor platform gains traction
The company’s investment platform now serves more than 95,000 registered investors, with one of the highest average investment values per customer in the industry.
Mehrotra said the growing popularity of Altifi, Northern Arc’s investment platform, reflects investor confidence in the company’s underwriting capabilities, disciplined risk management and long-term track record.
He added that the platform broadens funding sources for borrowers while providing individual investors access to quality fixed-income investment opportunities.
Data-driven risk management
Risk management continues to remain the cornerstone of Northern Arc’s business model. The company’s underwriting framework is supported by more than 50 million loan performance data points, over 30 proprietary underwriting models, and a team of more than 100 dedicated risk professionals.
The combination of technology, analytics and human judgement has enabled the company to respond swiftly to changing market conditions while maintaining disciplined lending standards.
This approach translated into improved financial metrics during FY26.
Credit costs declined by 42 basis points to 2.8%, while Net NPAs improved to 0.6%. Stage 2 assets reduced to 1.5%, and Return on Assets (RoA) increased to 2.8%, despite macroeconomic uncertainties and prudent provisioning.
Diversified funding base
Mehrotra said the company has also built a strong and diversified liability franchise comprising a balanced mix of domestic and offshore lenders.
This diversified funding profile, coupled with a healthy capital position and a positive Asset-Liability Management (ALM) profile across maturity buckets, provides financial flexibility and resilience across market cycles.
He said the combination of a scalable credit platform, disciplined risk management, diversified funding sources and technology-driven innovation positions Northern Arc Capital well to capture emerging opportunities in India’s evolving credit ecosystem