Asset Reconstruction Company (india) Limited Q1fy27: PAT Doubles to Rs. 143 Crore as Recoveries Up 151%

Asset Reconstruction Company (India) Limited (ARCIL) announced its audited financial results for the quarter ended 30th June 2026. The company’s profit after tax (PAT) doubled to Rs. 143 crore, driven by a sharp increase in recoveries, which rose 151% to Rs. 1,066 crore. This impressive performance resulted in a PAT margin of about 52% of total income. Total income increased 115% year-on-year to Rs. 276.1 crore, while fees and other income more than doubled to Rs. 118 crore.

Strong Recovery Performance

The company’s recovery performance was particularly notable, with recoveries from the corporate book leading the growth. Retail recoveries grew 88% to Rs. 351 crore, demonstrating the strength of the collections framework built for this segment. SME and other segment recoveries grew 47% to Rs. 44 crore. The cumulative SR redemption ratio improved to 52.5% as of June 2026.

Balance Sheet Strengthening

ARCIL also strengthened its balance sheet, with net worth rising to Rs. 3,222.3 crore and borrowings declining to Rs. 1,100.3 crore from Rs. 1,205.5 crore as of March 2026. This resulted in a debt-to-equity ratio of 0.34x. The company’s annualized return on equity (ROE) and return on assets (ROA) were 18.2% and 12.8%, respectively.

Mr. Phanindranath Kakarla, Managing Director & Chief Executive Officer of ARCIL, commented on the company’s performance, stating, “Q1FY27 has been an outstanding start to the year, setting a strong foundation for our journey as a listed company. With a robust acquisition pipeline and a growing capital base, we are confident in our ability to deliver sustained and profitable growth in the coming years.”

Source: NSE Corporate Announcement

Fundamental & Technical Analysis of Asset Reconstruction Company (India) Limited

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