ARCIL Q1 FY27 PAT Doubles on 151% Recovery Surge

Date: October 13, 2026

Financial Results (Standalone)

Revenue from operations was ₹274 crores for Q1 FY27, up 128% year-on-year.
Total income was ₹276 crores, up 115% year-on-year.
Fee and other income more than doubled to ₹118 crores.
Recovery of security receipts, fee, and expenses written off in earlier years contributed ₹120 crores. This is a recurring part of the business, with previous contributions of ~₹288 crores in FY24, ₹100 crores in FY25, and ₹66 crores in FY26.
Net unrealized mark-to-market gains were ₹23.6 crores.
Finance costs rose to ₹25 crores from ₹3.2 crores in Q1 FY26 due to moderate borrowings to fund acquisitions.
An Expected Credit Loss (ECL) provision of ₹22 crores was made against certain receivables expected to be realized in the near term.
Employee expenses were ₹21 crores, impacted by a new wage code and normal increments.
Other expenses were ₹11 crores.
Profit before tax was ₹192 crores, up 106% year-on-year.
Profit after tax was ₹143 crores, up 107% year-on-year, yielding a PAT margin of ~52% of total income.
Diluted EPS for the quarter (not annualized) was ₹4.41.

Business Update & Operational Highlights

Assets Under Management (AUM) stood at ₹19,574 crores as of June 30, 2026, up 16% year-on-year.
Total dues outstanding under management rose 20% to ₹1.40 lakh crores.
The AUM mix was 68% corporate, 24% retail, and 8% SME.
The company acquired ₹353 crores of stressed assets in Q1 FY27, with ARCIL investing ₹143 crores of its own capital (~40% of the acquisition value).
Total recoveries were ₹1,066 crores, a 151% increase from ₹425 crores in Q1 FY26.
The cumulative Security Receipt (SR) redemption ratio improved to 52.5% from 50.8% in March 2026.
The company's own investment in its AUM is ~₹4,200 crores, representing roughly 22% of total AUM.
Acquisitions are highly seasonal, with Q4 typically accounting for nearly half of annual acquisitions. In FY26, Q1 acquisitions were just 8% of the annual total.
The company has gained market share, with its share of industry AUM rising from 11% to 15% over two years, and its share of new acquisitions growing from 6% in FY24 to 17% in FY26.
Assets are acquired at a disciplined average of ~26% of their outstanding dues.
The company manages over 3.29 million retail borrowers on its proprietary technology platform.

Balance Sheet

Management Outlook & Market Context

The total stressed assets market in India (across banks and NBFCs, including NPAs and written-off loans) is estimated at ~₹24 lakh crores.
The composition of stress is broadening: retail stress has roughly doubled from ~₹3.5 lakh crores in FY20 to ~₹7 lakh crores in FY26; MSME stress is ~₹9.2 lakh crores; corporate stress remains large at ~₹7.6 lakh crores.
ARCs are engaging earlier in the cycle, with acquisitions of Special Mention Accounts (SMAs) rising to ~30% of new acquisitions in FY25 from ~14% in FY24.
The company is developing a "Collection-as-a-Service" business, currently in the Proof-of-Concept (POC) stage with its own assets and a few NBFCs.
The management encourages assessing performance over longer periods due to the seasonality of acquisitions and the "chunky," event-driven nature of corporate recoveries.
The company emphasizes that standalone financials are the right lens for shareholders, as consolidated results include ~220 trusts deemed controlled under Ind AS, which distorts the true picture of earnings accruing to ARCIL shareholders.

KMP / Board / Auditor Changes

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Dividend Declaration or Non-Declaration

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Board Meeting Outcomes

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Auditor’s Report

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Disinvestment / Strategic Actions

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Media Release / Investor Communication

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Other Operational / Legal / Strategic Disclosures

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