Annual Report for Financial Year 2025-26

Ref No.: NACL/06/JUL/2026-27 July 25, 2026 To, To, BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai- 400001 Bandra (E) Scrip Code: 544260 Mumbai – 400 051 Scrip Symbol: NORTHARC Sub: Notice of the 18th Annual General Meeting and Annual Report of Northern Arc Capital Limited for the Financial Year 2025-26. Ref: Intimation under Regulation 30, 34 and 53 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. With reference to above, we wish to inform you that the 18th Annual General Meeting (“AGM”) of the Northern Arc Capital Limited (“the Company”) will be held on Tuesday, August 18, 2026, at 11:30 A.M. (IST) through Video Conferencing (“VC”)/ Other Audio-Visual Means (“OAVM”) in compliance with the applicable circulars issued by the Ministry of Corporate Affairs (“MCA”) and Securities and Exchange Board of India (“SEBI”), and that the deemed venue of the AGM shall be the Registered Office of the Company situated at IITM Research Park, 10th Floor, No. 1, Kanagam Village, Taramani, Chennai – 600 113. Pursuant to Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the SEBI Listing Regulations”), as amended from time to time, please find enclosed the Notice convening the 18th AGM and the Annual Report of the Company for the Financial Year 2025-26. In terms of Regulation 46 of the SEBI Listing Regulations, the said Notice of 18th AGM and the Annual Report are also available on the website of the Company and can be accessed at www.northernarc.com and websites of the Stock Exchanges viz. National Stock Exchange of India Limited at www.nseindia.com, BSE Limited at www.bseindia.com and the e-voting service provider (NSDL) at www.evoting.nsdl.com and the Registrar and Share Transfer Agent at https://evoting.kfintech.com/ Further, in terms of Section 108 of the Companies Act, 2013, read with the Rule 20 of the Companies (Management and Administration) Rules, 2014, as amended and Regulation 44 of the SEBI Listing Regulations, the Company is providing facility to its Members to exercise their right to vote by electronic means, through e-Voting services of NSDL. The e-voting instructions and the process to join meeting through VC/ OAVM are set out in the AGM Notice. Further, in accordance with the applicable circular(s) issued by Ministry of Corporate Affairs and SEBI, the Notice of the AGM along with the explanatory statement and the Annual Report for the Financial Year 2025-26, is being sent through electronic mode to only those Members of the Company whose e-mail id are registered with the Company and/ or Depository Participant(s) as on Friday, July 17, 2026. Particulars Details Mode of convening AGM Video Conference / Other Audio Visual Means (VC/ OAVM) Date and time of AGM Tuesday, August 18, 2026, at 11:30 A.M. (IST) Cut-off date for participating in AGM and e-Voting Wednesday, August 12, 2026 Remote e-Voting start time and date From 09:00 A.M. (IST) on Friday, August 14, 2026 Remote e-Voting end time and date Up to 05:00 P.M. (IST) on Monday, August 17, 2026 Website for Participation through video NSDL - https://eservices.nsdl.com or conferencing www.evoting.nsdl.com CDSL - www.cdslindia.com or www.evotingindia.com Helpline number for VC participation NSDL - 022 – 4886-7000 CDSL - 1800-21-09911 For Northern Arc Capital Limited Prakash Chandra Panda Company Secretary & Compliance Officer Catalyst Trusteeship Limited, GDA House, Plot No.85, Bhusari Colony (Right), Paud Road, Pune 411 038. Encl a/a Northern Arc Capital Limited Annual Report 2025-26 POWERING INDIA’S CREDIT ECOSYSTEM What’s inside 02 06 20 28 PG. PG. PG. PG. Statutory Reports Management Discussion and Analysis 62 Board’s Report 77 Business Responsibility & Sustainability Report 88 Corporate Governance Report 141 Financial Statements Carrying forward a legacy Powering India’s credit ecosystem Standalone of purpose, resilience and by enabling the seamless flow of Financial Statements 180 responsible growth. credit to underserved households, - PS Jayakumar entrepreneurs and businesses. Consolidated - Ashish Mehrotra Financial Statements 328 Notice Notice of Annual General Meeting 488 Corporate Overview Visit the interactive online report Powering India’s Credit Ecosystem 02 Risk management 40 www.northernarc.com Chairman’s letter to shareholders 06 Enabling scalable capital flow through technology 42 MD and CEO’s letter to shareholders 10 Fostering a thriving work culture 44 Delivering our strategy 14 Our future value-builders and growth enablers 46 Scan the QR Code to know more about the About Northern Arc Capital Limited 16 ESG focus: Sustainable pathways to financial access 48 company An efficient and scalable business model 18 An efficient and diversified Board 56 Credit Solutions 20 Key management and leadership team 58 Direct-to-Customer lending 28 Awards & recognitions 60 Enhancing efficiency across the value chain 38 Corporate information 61 Numbers that define Northern Arc Capital Limited 16+ ~140 Years Million POWERING of enabling credit access Lives impacted and building an entire (Directly and through Originator INDIA’S CREDIT credit ecosystem Partners) ECOSYSTEM INR 2.5 Lakh Crore 432 India’s credit opportunity extends far beyond lending, Credit enabled till date Branches it lies in building an ecosystem where capital flows efficiently to every deserving individual, household, and business. At Northern Arc, we have spent over sixteen 57 1,500+ years building exactly that. Digital Partners Investors Northern Arc is a diversified, technology-led financial services platform that powers India’s credit ecosystem by connecting borrowers, originator partners, lenders and INR 16,594 investors through an integrated, efficient and scalable 368 Crore platform. Our unique ecosystem-led model enables us to originate, underwrite, distribute and manage credit Originator Partners AUM across multiple channels, ensuring that capital reaches underserved segments of the economy while creating value for every participant in the ecosystem. 29.55 Lakh AA- By combining deep domain expertise, proprietary Direct Customers Credit Rating technology, disciplined risk management and diversified funding relationships, we have built a resilient institution that bridges the gap between capital and opportunity. 680+ Outstanding Whether through our Credit Solutions platform, our rapidly growing Direct-to-Customer lending franchise (Score 81) Districts or our retail bonds platform, Altifi, our purpose remains unchanged, to enable the seamless flow of credit and ICRA ESG Impact Rating contribute meaningfully to India’s journey of inclusive and sustainable economic growth. Northern Arc Capital Limited 03 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS Northern Arc evolution into diversified credit enabler Growing AUM and Profitability across Market Cycles Northern Arc’s evolution has been driven by the strategic addition of complementary business lines. We have consistently demonstrated our resilience by successfully navigating periods of economic uncertainty Beginning with enabling financial institutions to raise capital through balance sheet lending, placements, and market volatility. Through prudent risk management and a diversified business model, the Company and credit funds, the Company expanded to provide comprehensive credit solutions for Originator Partners. emerged strong, delivering sustained growth in AUM, alongside improved profitability. Leveraging the insights, data, and underwriting expertise gained through these partnerships, Northern Arc successfully built its Direct-to-Customer lending franchise, focussed on the high-growth MSME, Consumer, and Rural Finance segments. This journey has transformed the Company into a diversified financial services company with multiple growth engines. Assets Under Management (AUM) (INR [Showing first 8,000 characters — download PDF for full document]