Date: October 29, 2026

Financial Performance Overview

ARCIL reported unaudited standalone financial results for Q2 and half year ended September 30, 2026 (H1 FY27). The company advises evaluating performance over longer-term horizons due to the nature of the asset reconstruction business with long-tenure resolution cycles and lumpy recoveries.

Key Financial Metrics (H1 FY27 vs H1 FY26)

| Metric (₹ Crore) | H1FY27 | H1FY26 | YoY Growth |

| Total Assets Under Management | 20,274 | 16,784 | 21% |

| Acquisition | 1,707.0 | 1,445.0 | 18% |

| Recovery | 2,135.1 | 1,765.0 | 21% |

| Total Income | 516.4 | 348.0 | 48% |

| Profit After Tax | 290.0 | 188.7 | 54% |

Detailed Financial Analysis

Assets Under Management (AUM):

  • AUM grew 21% YoY to ₹20,274 crore as of September 30, 2026, compared to ₹16,784 crore a year ago
  • ARCIL's investment in AUM increased 26% YoY to ₹4,442 crore

Acquisition Activity:

  • Total acquisitions stood at ₹1,707.0 crore, an increase of 18% YoY from ₹1,445.0 crore
  • ARCIL's own investment in H1 FY27 acquisitions stood at ₹717.8 crore

Recovery Performance:

  • Total recoveries for H1 FY27 increased 21% YoY to ₹2,135.1 crore from ₹1,765.0 crore
  • Q2 FY27 recoveries were ₹1,069.0 crore, marking the second consecutive quarter of recoveries exceeding ₹1,000 crore
  • Recovery breakdown: Corporate recoveries ₹1,226.5 crore, Retail recoveries ₹764.4 crore, SME and other recoveries ₹144.2 crore
  • Cumulative Security Receipt (SR) redemption ratio remained at 52% as of September 2026

Profitability and Margins:

  • PAT increased 54% YoY to ₹290.0 crore compared to ₹188.7 crore in H1 FY26
  • PAT margin improved to approximately 56% from 54% in the corresponding period last year

Balance Sheet and Returns:

  • Net worth stood at ₹3,336.8 crore
  • Borrowings were at ₹1,224.2 crore
  • Debt-to-equity ratio: 0.37x
  • Annualized ROE: 18.1% (compared to 14.0% for FY26)
  • Annualized ROA: 12.6% (compared to 10.6% for FY26)

Management Commentary

Mr. Phanindranath Kakarla, Managing Director & Chief Executive Officer, commented on the strong H1 FY27 performance highlighting:

  • Resilience of business model, disciplined execution, and sustained focus on profitable growth
  • Significant acceleration in asset acquisition activity with healthy pipeline for H2 FY27
  • Historical trend of higher business activity in second half of financial year
  • Continued recognition by banks and financial institutions of ARCs' role in efficient resolution
  • Expansion of India's credit market creating broader, more diversified opportunities

Strategic Priorities

  • Expanding corporate portfolio, particularly in mid-sized assets with sound underlying value
  • Strengthening presence in retail and SME segments
  • Scaling CaaS (collection-as-a-service) offering for banks
  • Selectively evaluating opportunities in stressed microfinance portfolios
  • Strengthening technology and data analytics capabilities for operational efficiency and improved recovery outcomes

Company Background

ARCIL is India's first and largest private asset reconstruction company by AUM, profitability, and market share. Incorporated in 2002, it received RBI registration to commence securitization and asset reconstruction business on August 29, 2003 under the SARFAESI Act. The company operates across three business verticals: Corporate loans, SME and Other loans, and Retail loans.