Asset Reconstruction Company (India) Ltd (ARCIL) delivered robust financial results for Q2 FY27, with net profit increasing 23% year-on-year to ₹147 crore compared to ₹120 crore in the corresponding quarter last year. According to reports from The Hindu BusinessLine, this growth was driven by strong performance across multiple revenue streams and effective cost management.
The company's fees and other income surged 64% year-on-year to ₹110 crore (₹67 crore in Q2 FY26), while investment income jumped 57% year-on-year to ₹112 crore (₹71 crore in the previous year). As reported by The Hindu BusinessLine, total expenses declined significantly by 31% year-on-year to ₹42 crore, contributing to the overall profitability improvement.
ARCIL's total assets under management rose 21% year-on-year to ₹20,274 crore as of September-end, demonstrating strong business expansion. According to the company's management, this growth was supported by significant acceleration in asset acquisition activity during the first half of the fiscal year.
The company maintained strong recovery momentum with Q2 recoveries of ₹1,069 crore, marking the second consecutive quarter of recoveries exceeding ₹1,000 crore. As reported by The Hindu BusinessLine, total recoveries for H1 increased by 21% year-on-year to ₹2,135.1 crore, with corporate recoveries contributing ₹1,226.5 crore, retail recoveries ₹764.4 crore, and SME and other recoveries ₹144.2 crore during the first half.
Phanindranath Kakarla, Managing Director and Chief Executive Officer of ARCIL, highlighted the significant acceleration in asset acquisition activity during H1, with total acquisitions reaching ₹1,707 crore, an increase of 18% year-on-year. The company's cumulative Security Receipt redemption ratio remained at 52% as of September, reflecting its continued focus on resolution and value realisation. During H1, ARCIL's own investment in acquisitions stood at ₹717.8 crore, demonstrating the company's active participation in the market.
