Standalone Business Performance

ARCIL reported audited financial results for Q1 FY27 (quarter ended June 30, 2026) based on Ind-AS standards.

Key Financial Metrics (INR Crore):

| Particulars | Q1FY27 | Q1FY26 | YoY Change | FY26 | FY25 | YoY Change |

| Total Assets Under Management | 19,574 | 16,809 | 16% | 20,150 | 16,853 | 20% |

| Acquisition | 352.7 | 502.2 | (30%) | 5,958.8 | 3,975.9 | 50% |

| Recovery | 1,066.0 | 425.0 | 151% | 3,484.0 | 3,882.0 | (10%) |

| Total Income | 276.1 | 128.5 | 115% | 749.5 | 617.8 | 21% |

| Profit After Tax | 143.1 | 69.1 | 107% | 407.8 | 355.3 | 15% |

Performance Highlights:

  • AUM grew 16% YoY to Rs. 19,574 crore as of June 30, 2026 vs Rs. 16,809 crore a year ago
  • ARCIL's investment in AUM increased 25% YoY to Rs. 4,207 crore
  • Net owned funds stood at Rs. 2,792 crore against Rs. 2,598 crore a year ago
  • Acquisitions were Rs. 352.7 crore vs Rs. 502.2 crore in Q1 FY26
  • ARCIL's investments were Rs. 142.9 crore vs Rs. 242.7 crore in Q1FY26
  • Recoveries rose 151% YoY to Rs. 1,066.0 crore
  • Cumulative SR redemption ratio improved to 52.5% as of June 2026 from 50.8% as of March 2026
  • Total income increased 115% YoY to Rs. 276.1 crore
  • Fees and other income more than doubled to Rs. 118.0 crore from Rs. 57.9 crore
  • Recovery of previously written-off SRs, unrealised fees and expenses contributed Rs. 120.1 crore
  • Profit before tax rose 106% YoY to Rs. 192.4 crore
  • PAT margin was about 52% of total income
  • Net worth stood at Rs. 3,222.3 crore
  • Borrowings were Rs. 1,100.3 crore vs Rs. 1,205.5 crore in March 26
  • Debt-to-equity ratio improved to 0.34x
  • Annualised ROE was 18.2% and ROA was 12.8%

Segment-wise Recovery Performance:

  • Corporate book recoveries: Rs. 671.0 crore (more than three times Q1 FY26 level)
  • Retail recoveries: Rs. 351.0 crore (88% growth YoY)
  • SME and other segments recoveries: Rs. 44.0 crore (47% growth YoY)

Management Commentary

Mr. Phanindranath Kakarla, Managing Director & Chief Executive Officer, commented on the company's performance:

  • Q1 FY27 was an outstanding start to the year, setting a strong foundation for the journey as a listed company
  • Performance was driven by a sharp pick-up in recoveries, which rose 151% to Rs. 1,066.0 crore
  • Fees and other income doubled to Rs. 118.0 crore
  • Balance sheet strengthened with net worth rising to Rs. 3,222.3 crore and borrowings declining to Rs. 1,100.3 crore
  • Corporate book led the performance with recoveries of Rs. 671.0 crore
  • Retail recoveries grew 88% demonstrating strength of collections framework
  • Operating environment remains constructive with India's retail credit market continuing to deepen
  • Stress across lending segments is expected to rise
  • Recovery rates for ARCs have improved steadily
  • Regulatory initiatives such as SEBI's Special Situation Funds and proposed RBI framework for securitisation of stressed assets are expected to broaden the toolkit for stress resolution
  • Company will continue to grow corporate book by focusing on creditworthy, mid-sized assets
  • Intent to increase share of retail and SME assets
  • Plan to expand collection-as-a-service offering for banks
  • Explore opportunities in stressed assets from microfinance institutions
  • Continue to invest in technology and data analytics to improve recovery efficiency
  • Listing on NSE and BSE in September 2026 marks a defining milestone
  • Continued backing of State Bank of India and Avenue Capital reinforces confidence in franchise

Business Overview

ARCIL is India's first and largest private asset reconstruction company by AUM, Profitability and Market Share, focused on acquiring and resolving non-performing assets (NPAs) and stressed loans from banks and financial institutions.

Company Details:

  • Incorporated in 2002
  • Received RBI registration to commence securitisation and asset reconstruction business on August 29, 2003 under the SARFAESI Act
  • First stressed-asset acquisition completed in December 2003
  • Operates across three business verticals: Corporate loans, SME and Other loans, and Retail loans

Contact Information:

  • Investor Relations: Ms. Anuradha Singh, VP, Finance (IR@arcil.co.in)
  • Investor Relations Advisors: Strategic Growth Advisors Pvt. Ltd. (CIN: U74140MH2010PTC204285)
  • Contacts: Mr. Abhishek Shah / Mr. Dhruvil Jani (abhishek.shah@sgapl.net / dhruvil.jani@sgapl.net, +91 9930651660 / +91 9702554569)