Northern Arc Capital Completes Financial Year 2025-26, Highlights Commitment to Responsible Lending and ESG Goals

Northern Arc Capital Completes Financial Year 2025-26, Highlights Commitment to Responsible Lending and ESG Goals​

Northern Arc Capital Limited, a Non-Banking Financial Company (NBFC), has released its Business Responsibility Sustainability Report for the financial year 2025-26. The report outlines the company's operational footprint, workforce composition, and commitments toward sustainable business practices across its various functions.

The NBFC operates primarily in the financial services sector, with all business activities focused on Non-Banking Financial services, representing 100% of the entity's turnover. Northern Arc maintains a network of 91 offices nationwide, serving diverse customer segments including rural and retail customers, Micro, Small, and Medium Enterprises (MSMEs), Originator Partners, Emerging Corporates, and Institutional Investors.

Workforce and Governance Snapshot​

As of March 31, 2026, the company reported a total workforce of 1,524 employees and workers. Among these, 1,126 were permanent employees, with 83.33% being male and 16.67% female. The company has dedicated systems in place to ensure compliance with human rights requirements.

The board structure includes an ESG Committee responsible for the oversight and review of the Business Responsibility policies. Northern Arc reported that it provides a structured Grievance Redressal Mechanism for all its permanent employees, including those related to discrimination or accessibility.

Focus on Responsible Finance and Inclusion​

The company has identified several material aspects concerning its operations, particularly regarding "Responsible Lending & Client Engagement." To mitigate risks of over-indebtedness and maintain prudent underwriting standards, Northern Arc utilizes a cash flow based underwriting approach, supplemented by alternative data, and designs flexible repayment structures.

Key areas of focus include promoting financial inclusion and ethical governance. The organization actively works to address the needs of underserved communities, supported by its commitment to CSR projects designed for this purpose.

The company has established specific long-term goals in line with sustainability:

• Climate Finance: Achieve a climate finance target of INR 1,000 crore by the year 2030.
• Women's Entrepreneurship: Commit to financing INR 4000 crore by FY28-29 to women-owned and women-led businesses.
• Financial Inclusion Growth: Aim for a minimum of 15% year-on-year growth in outreach from the financial inclusion segment between FY26-27 and FY28-29, driven by lending operations and financing Originator Partners.

Environmental and Social Indicators​

The report details various operational inputs and environmental performance metrics. Key areas reviewed include energy consumption and water usage. For instance, total water consumption for the entity in FY 2025-26 was 12782.26 kilolitres, resulting in a water intensity of 0.048522 per rupee of turnover.

Regarding waste management, Northern Arc noted that electronic waste (e-waste) is the primary form of solid waste generated through its operations, and all discarded electronic assets are managed through authorized recyclers approved by the Pollution Control Board. Total e-waste generated in FY 2025-26 was 0.313 metric tonnes.

CSR Commitment​

The company confirmed that Corporate Social Responsibility (CSR) is applicable, with a total expenditure of INR 7,52,66,825/- recorded for the financial year. The initiatives conducted by the Northern Arc Foundation include:

• Supporting differently abled children with residential education and providing medical aid.
• Providing palliative care services to individuals facing serious health-related suffering.
• Offering healthcare education opportunities to students from economically disadvantaged backgrounds, which benefited 624 students.
• Running the FoodHeals Program, reaching 3619 cumulative beneficiaries.

The company also maintains that its products and services are accessible and information is available on their website for consumers, underscoring a commitment to transparency in financial product offerings.

NORTHARC Stock Price Movement​

Northern Arc Capital Limited shares gained on Friday, closing at ₹299.40 after climbing 0.91% in session. The stock finished the trading day amid a volume of 430,335 shares, having traded within the intraday range of ₹291.60 to ₹301.10.