Mumbai: Asset Reconstruction Company (India) Ltd (ARCIL) on Friday reported a 54 per cent rise in profit after tax (PAT) to ₹290 crore for the half year ended 30 September 2026. Total income for the period grew 48 per cent to ₹516.4 crore.
Financial Performance
The company's total assets under management (AUM) reached ₹20,274 crore as of 30 September 2026, marking a 21 per cent year-on-year increase. Acquisitions for H1 FY27 stood at ₹1,707.0 crore, an 18 per cent increase from the previous year.
Recovery and Income Growth
Recoveries for H1 FY27 rose 21 per cent year-on-year to ₹2,135.1 crore. This performance was supported by strong recovery across corporate, retail, and SME segments.
Operational Highlights
ARCIL's investment in AUM increased 26 per cent year-on-year to ₹4,442 crore. The company's PAT margin improved to approximately 56 per cent from 54 per cent in H1 FY26.
Balance Sheet and Ratios
Net worth was ₹3,336.8 crore, with borrowings at ₹1,224.2 crore, resulting in a debt-to-equity ratio of 0.37x. Annualised return on equity (ROE) was 18.1 per cent, up from 14.0 per cent in FY26, and annualised return on assets (ROA) was 12.6 per cent, compared to 10.6 per cent in FY26.
Management Outlook
Phanindranath Kakarla, Managing Director and Chief Executive Officer, said the company delivered a strong performance due to disciplined execution and a focus on profitable growth. Kakarla noted that the company's strong balance sheet and diversified business platform position it well for opportunities in the stressed asset market.
Acquisition Activity
ARCIL's own investment in H1 FY27 acquisitions was ₹717.8 crore. Quarterly recoveries in Q2 2026 exceeded ₹1,000 crore, with corporate recoveries at ₹1,226.5 crore, retail recoveries at ₹764.4 crore, and SME and other recoveries at ₹144.2 crore.
Industry Context
Banks and financial institutions continue to acknowledge the role of Asset Reconstruction Companies in resolving stressed assets. The expansion of India's credit market, particularly in retail lending, is creating more diversified opportunities for the ARC industry, according to the company.
Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.
