Asset Reconstruction Company (India) Limited (ARCIL) announced its unaudited financial results for the half-year ended September 30, 2026. The company reported a substantial 54% year-on-year increase in Profit After Tax (PAT) to ₹290.0 crore. Total income also saw a significant rise of 48% to ₹516.4 crore, driven by healthy recovery momentum and increased asset acquisitions.
ARCIL Reports Strong H1 FY27 Financial Performance
Asset Reconstruction Company (India) Limited (ARCIL) has declared robust financial results for the first half of fiscal year 2027 (H1 FY27), ending September 30, 2026. The company has demonstrated significant growth, with Profit After Tax (PAT) soaring by 54% to ₹290.0 crore, up from ₹188.7 crore in the corresponding period last year. This impressive growth underscores the company’s effective business model and disciplined execution.
Key Financial Highlights
Total income for H1 FY27 grew substantially by 48% year-on-year, reaching ₹516.4 crore compared to ₹348.0 crore in H1 FY26. This surge in income was primarily supported by strong recovery performance. The company’s PAT margin also improved to approximately 56% from 54% in the previous year’s comparable period, reflecting enhanced profitability.
Business Performance Drivers
ARCIL’s performance was propelled by strong momentum in asset acquisition and healthy recovery rates. Total Assets Under Management (AUM) grew by 21% year-on-year to ₹20,274 crore as of September 30, 2026. Acquisitions for H1 FY27 stood at ₹1,707.0 crore, an 18% increase from the prior year. Recoveries for the period also increased by 21% to ₹2,135.1 crore, showcasing the company’s efficacy in resolving stressed assets.
Strengthening Financial Position
The company’s net worth stood at ₹3,336.8 crore, with borrowings at ₹1,224.2 crore, resulting in a healthy debt-to-equity ratio of 0.37x. Annualized Return on Equity (ROE) was reported at 18.1%, up from 14.0% for FY26, and Annualized Return on Assets (ROA) was 12.6%, an increase from 10.6% for FY26.
Management Commentary
Commenting on the results, Mr. Phanindranath Kakarla, Managing Director & Chief Executive Officer, stated, “We have delivered a strong performance in the first half of FY27, reflecting the resilience of our business model, disciplined execution and sustained focus on profitable growth.” He highlighted the acceleration in asset acquisition activity and the healthy recovery performance as key contributors to the company’s success.
Source: BSE
