Date: November 06, 2026

Financial Results (Standalone & Consolidated)

Standalone Performance for H1 FY27 (Half Year Ended September 30, 2026):

  • Total Income: ₹516 crores, up 48% YoY from H1 FY26
  • Revenue from Operations: ₹512 crores, up from ₹337 crores YoY
  • Profit Before Tax (PBT): ₹390 crores, up 54% YoY
  • Profit After Tax (PAT): ₹290 crores, up 54% YoY
  • PAT Margin: 56% vs. 54% in H1 FY26
  • Diluted Annualized EPS: Approximately ₹18.50
  • Annualized Return on Equity (ROE): 18%
  • Annualized Return on Assets (ROA): 12.6%

Revenue Breakdown (H1 FY27):

  • Fee and Other Income: ₹227 crores, up 82% YoY
  • Other Operating Income (Investment Upsides): ₹122 crores vs. ₹87 crores YoY
  • Writebacks (recovery of security receipts, fees, and expenses written off in earlier years): ₹129 crores vs. ₹37 crores YoY
  • Net Unrealized Mark-to-Market Gain: ₹26 crores vs. ₹72 crores YoY

Expenses (H1 FY27):

  • Expenses and Finance Costs: ₹43 crores vs. ₹7.5 crores YoY (reflecting borrowings for acquisitions)
  • Impairment, Depreciation, and Amortization: ₹13 crores vs. ₹4 crores YoY (ECL provision made in Q1, partially reversed in Q2)
  • Employee Expenses: ₹39.2 crores vs. ₹30.8 crores YoY (net of ₹3.5 crores reversal of an excess provision)
  • Other Expenses: ₹25 crores vs. ₹18.3 crores YoY

Q2 FY27 Standalone Performance:

  • Total Income: ₹240 crores, up 8% YoY
  • Profit After Tax: ₹146 crores, up 23% YoY
  • Recoveries: ₹1,069 crores vs. ₹1,339 crores in Q2 FY26 (which included large corporate resolutions)

Consolidated Results for H1 FY27:

  • Consolidated Profit: ₹219 crores vs. Standalone profit of ₹290 crores
  • Consolidated Income: ₹496 crores vs. Standalone income of ₹516 crores

Management clarified that standalone financials are the primary reflection of performance for shareholders and the basis for regulatory ratios (CAR and net owned funds).

Assets Under Management (AUM) & Operational Metrics:

  • AUM as of September 30, 2026: ₹20,274 crores, up 21% YoY (from ₹16,784 crores)
  • AUM Composition: Corporate (~66%), Retail (~25%), SME (~9%)
  • Dues Under Management: ~₹1.4 lakh crores, up 20% YoY
  • Retail AUM: Crossed ₹5,000 crores for the first time
  • Acquisitions (H1 FY27): ₹1,707 crores, up 18% YoY
  • Q1 FY27: ₹353 crores
  • Q2 FY27: ₹1,354 crores (4x Q1, and 43% higher than Q2 FY26)
  • Acquisition Mix (H1 FY27): Corporate (~₹700 crores), SME and Retail (~₹1,000 crores)
  • Investment Ratio: 42% (ARCIL invested ₹718 crores of its own capital in H1 acquisitions)
  • Recoveries (H1 FY27): ₹2,135 crores, up 21% YoY
  • Security Receipt (SR) Redemptions (H1 FY27): ₹1,583 crores vs. ₹1,500 crores YoY
  • Cumulative SR Redemption Ratio: ~52% (up from 50.8% as of March 31, 2026)

Balance Sheet & Capital Structure (as of September 30, 2026):

  • Net Worth: ₹3,337 crores (vs. ₹3,079 crores in March '26)
  • Net Owned Funds: ₹2,882 crores (vs. ₹2,540 crores a year earlier)
  • Borrowings: ₹1,224 crores (up from ₹1,100 crores as of June 30, 2026)
  • Debt-to-Equity: 0.37 times
  • Capital Adequacy Ratio (CAR): 70.5%

Management Commentary & Strategic Updates:

  • Industry Context: Cited a CRISIL estimate of total stress across banks and NBFCs at ~₹23.7 lakh crores in FY26, with ~₹15.9 lakh crores in NPAs and written-off loans. ARCs buy below 10% of this pool annually.
  • Market Position: ARCIL's share of industry AUM rose from 11% in FY24 to 15% in FY26; share of industry acquisitions rose from 6% to 17% in the same period.
  • Strategy: Described as "Buy with discipline, resolve with urgency, and deploy capital with a clear focus on returns."
  • Priorities for H2 FY27: Grow corporate book (mid-sized assets), increase share of retail and SME, scale "collection as a service" for banks, evaluate stressed microfinance portfolios selectively, and invest in technology and analytics.
  • Seasonality: Acquisitions are historically concentrated in the second half (H2) as lenders review asset quality ahead of their year-end.
  • Collection as a Service (CAS): Pilots started with a couple of lenders; expected to scale through H2 FY27.
  • Portfolio Quality: Management stated they do not foresee major write-offs, as the recovery cycle has moved to 3-4 years, allowing for entire capital recovery.
  • Revenue Mix Outlook: Fee and upside investment income expected to constitute 70-80% of overall revenue going forward.

Q&A Highlights:

  • Addressed questions on lumpy revenue streams (corporate recoveries), the strategy for microfinance, competitive intensity, and the impact of a potential asset quality cycle.
  • Clarified that writebacks are a regular part of revenue but vary in timing.
  • Stated that the company does not provide specific numerical guidance but focuses on historical performance and growth trajectory.

Not Specified:

  • Dividend Declaration or Non-Declaration
  • KMP / Board / Auditor Changes
  • Board Meeting Outcomes (beyond results)
  • Auditor’s Report
  • Disinvestment / Strategic Actions