Q1FY27 results: PAT doubles to Rs. 143.1 crore, recoveries up 151%

Press release on audited Q1 FY27 results (quarter ended June 30, 2026).

Wed 7 Oct 2026

Profit after tax

Rs. 143.1 crore, up 107%

Total income

Rs. 276.1 crore, up 115%

Recovery

Rs. 1,066.0 crore, up 151%

Q1 FY27 at a glance

The press release covers ARCIL's audited standalone and consolidated financial results for the quarter ended June 30, 2026. The figures below are from the standalone business performance table.

• Assets under management: Rs. 19,574 crore as of June 30, 2026, up 16% from Rs. 16,809 crore a year earlier.
• Acquisition: Rs. 352.7 crore, against Rs. 502.2 crore in Q1 FY26, a fall of 30%.
• Recovery: Rs. 1,066.0 crore, up 151% from Rs. 425.0 crore.
• Total income: Rs. 276.1 crore, up 115% from Rs. 128.5 crore.
• Profit after tax: Rs. 143.1 crore, up 107% from Rs. 69.1 crore, a PAT margin of about 52% of total income.
• Profit before tax: Rs. 192.4 crore, up 106%.

What supported the numbers

The company says recoveries rose 151% to Rs. 1,066.0 crore, and the cumulative SR (security receipts) redemption ratio improved to 52.5% as of June 2026 from 50.8% as of March 2026. 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 and was described as a key contributor to the year-on-year performance.

ARCIL's investment in AUM increased 25% year-on-year to Rs. 4,207 crore, while own funds stood at Rs. 2,792 crore.

On acquisitions, the company said the business is linked to the lending cycle and the timing of stressed asset sales by lenders, with a significant portion of acquisitions and related investments typically occurring in the second half or Q4 of the financial year. ARCIL's investments were Rs. 142.9 crore against Rs. 242.7 crore in Q1 FY26.

Where the recoveries came from

• Corporate book: Rs. 671.0 crore, more than three times the level recorded last year.
• Retail: Rs. 351.0 crore, up 88%.
• SME and other segments: Rs. 44.0 crore, up 47%.

Balance sheet

• Net worth: Rs. 3,222.3 crore.
• Borrowings: Rs. 1,100.3 crore, against Rs. 1,205.5 crore as of March 2026.
• Debt-to-equity: 0.34x.
• Annualised ROE and ROA: 18.2% and 12.8% respectively.

Management commentary

Managing Director & Chief Executive Officer Mr. Phanindranath Kakarla said Q1 FY27 has been an outstanding start to the year and sets a strong foundation for the company's journey as a listed company. He said the company will continue to grow its corporate book by focusing on creditworthy, mid-sized assets, increase the share of retail and SME assets, expand its collection-as-a-service offering for banks, and explore opportunities in stressed assets from microfinance institutions. He also said the company will continue to invest in technology and data analytics to improve recovery efficiency, and referred to its listing on the NSE and BSE in September 2026, with the continued backing of State Bank of India and Avenue Capital.

On the operating environment, the release says India's retail credit market continues to deepen, stress across lending segments is expected to rise, recovery rates for ARCs have improved, and regulatory initiatives such as SEBI's Special Situation Funds and the proposed RBI framework for the securitisation of stressed assets are expected to broaden the toolkit available for stress resolution.

Point to note

The release carries a safe harbour statement that it includes forward-looking statements based on estimates and the anticipated effects of future events, that these are subject to risks and uncertainties and are not necessarily predictive of future results, and that the company assumes no obligation to update them.

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