Asset Reconstruction Company (India) LimitedFinancial ServicesARCIL
Q1 FY27 concall · earnings callAsset Reconstruction Company (India) Limited
Q1 FY27 was a recovery-led quarter in a seasonally light acquisition period, with total recoveries up 151% to INR1,066 crores and standalone PAT more than doubling to INR143 crores on strong corporate resolutions.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| AUM | ₹19,574 Cr | up 16% on a year | |
| Total recoveries | ₹1,066 Cr | up 151% vs ₹425 Cr in Q1 FY26 | |
| Revenue from operations (standalone) | ₹274 Cr | up 128% on-year | |
| Profit after tax (standalone) | ₹143 Cr | up 107% | |
| Cumulative SR redemption ratio | 52.5% | up from 50.8% in March '26 |
TL;DR
- AUM at INR19,574 crores up 16% YoY with dues at INR1.40 lakh crores; acquired INR353 crores with INR143 crores own investment in seasonally light Q1
- Total recoveries INR1,066 crores vs INR425 crores in Q1 FY26; cumulative SR redemption ratio at 52.5% vs 50.8% in March
- Standalone revenue INR274 crores up 128% and PAT INR143 crores up 107%, including INR120 crores write-back and INR23.6 crores MTM gains; consolidated PAT was INR59 crores
- Balance sheet conservative with net worth INR3,222 crores, CRAR 72.5%, borrowings INR1,100 crores and debt-equity 0.34x
Said on the call
“Our approach to the stressed assets business can be summarized in one line: buy with discipline, resolve with urgency, and deploy capital with a clear focus on returns.”
From the Q&A
| Topic | What management said |
|---|---|
| Industry recovery rates | Management said industry recoveries improved as economy and real estate collateral values recovered, allowing assets bought cheap in stress to resolve higher. |
| Borrowings and seasonality | Management said borrowings fell sequentially due to seasonal light Q1 acquisitions after year-end peak drawdowns and expects to draw down and marginally increase leverage as pipeline builds. |
| AUM target and retail mix | Management declined AUM or acquisition guidance, saying AUM growth is net of 20-25% annual resolution of opening AUM and mix reflects availability with more retail supply recently. |
| Write-back of security receipts written off earlier | Management said INR120 crores write-back in Q1 is recurring but event-based and lumpy, should not be trended, and should decline over years as system write-offs have reduced. |
| Collection-as-a-Service | Management said collection-as-a-service is at infrastructure-building and POC stage with own assets and a few NBFCs, with no scale or revenue targets yet. |
| IRRs, vintage and write-offs | Management said historical IRRs are in higher 20s around 20%-22%, varying by corporate, SME and retail, and that over-8-year AUM is 34% but next 3-year cumulative write-offs would be less than INR100 crores. |
Guidance
- No formal numeric guidance given for AUM or acquisitions; acquisitions to be driven by availability and price discipline
- Management said current activity and pipelines give confidence acquisitions through the year will be strong with pick-up in Q2-Q4 per normal seasonality
- Management expects to resolve about 20% to 25% of opening-year AUM annually and to assess performance over full year on standalone basis
Source
Summary written from the transcript filed by Asset Reconstruction Company (India) Limited for the call held on 7 Oct 2026; published 13 Oct 2026, 17:39 IST.
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