ARCIL Q2/H1FY27 Results: PAT Surges 54% to ₹290 Crore on 48% Income Growth
ARCIL reported H1FY27 results with PAT up 54% to ₹290 crore and income up 48% to ₹516.4 crore. AUM grew 21% to ₹20,274 crore. Acquisitions rose 18% to ₹1,707 crore, and recoveries increased 21% to ₹2,135.1 crore. The company's ROE improved to 18.1%.
The substantial increase in profitability and assets under management, coupled with positive management commentary and strategic focus, indicates a significant positive impact on the company's outlook and stakeholder value.
The company has reported significant year-on-year growth in key financial metrics such as PAT, total income, AUM, acquisitions, and recoveries, indicating a strong operational and financial performance.
Asset Reconstruction Company (India) Limited (ARCIL) announced its unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. The company reported a significant increase in its financial performance, with total income growing by 48% year-on-year to ₹516.4 crore in H1FY27 from ₹348.0 crore in H1FY26. Profit After Tax (PAT) surged by 54% to ₹290.0 crore compared to ₹188.7 crore in the same period last year. The PAT margin improved to approximately 56% from 54% in H1FY26.
The Assets Under Management (AUM) grew by 21% year-on-year to ₹20,274 crore as of September 30, 2026, compared to ₹16,784 crore a year ago. ARCIL's investment in AUM increased by 26% year-on-year to ₹4,442 crore. Acquisitions for H1FY27 stood at ₹1,707.0 crore, an increase of 18% year-on-year from ₹1,445.0 crore. Recoveries for H1FY27 increased by 21% year-on-year to ₹2,135.1 crore from ₹1,765.0 crore.
ARCIL's net worth stood at ₹3,336.8 crore, with borrowings at ₹1,224.2 crore, resulting in a debt-to-equity ratio of 0.37x. The annualized Return on Equity (ROE) was 18.1%, up from 14.0% in FY26, and the annualized Return on Assets (ROA) was 12.6%, compared to 10.6% for FY26.
Mr. Phanindranath Kakarla, Managing Director & Chief Executive Officer, commented on the performance, highlighting the resilience of the business model and disciplined execution. He noted the acceleration in asset acquisition activity and strong recovery momentum, with Q2 recoveries exceeding ₹1,000 crore for the second consecutive quarter. Looking ahead, ARCIL plans to focus on expanding its corporate portfolio, strengthening its presence in retail and SME segments, scaling its CaaS offering, and evaluating opportunities in stressed microfinance portfolios. The company also aims to enhance its technology and data analytics capabilities.
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