Asset Reconstruction Company Q1 FY27 Revenue Rises 101%

Asset Reconstruction Company (India) Ltd., or ARCIL, reported total quarterly revenue of ₹235.49 crore for the quarter ended 30 June 2026, according to the financial information provided. Net profit for the quarter stood at ₹89.15 crore. The company released its Q1 FY27 investor presentation on 6 October 2026, shortly after its listing on the NSE and BSE in September 2026.

The figures offer an early public-market view of ARCIL's operating performance as a listed asset reconstruction company. ARCIL acquires stressed assets from banks and financial institutions and seeks recoveries through restructuring, settlements, collections and enforcement of security interests.

Revenue more than doubled from a year earlier

Total quarterly revenue was ₹235.49 crore in June 2026, compared with ₹117.05 crore in June 2025. This represents year-on-year growth of about 101%. Operating revenue was ₹234.74 crore, against ₹109.00 crore in the corresponding quarter of the previous year.

The reported revenue increase was accompanied by a lower other-income contribution. Other income was ₹0.75 crore in the June 2026 quarter, compared with ₹8.05 crore a year earlier. This indicates that the reported revenue performance was primarily supported by operating revenue rather than other income.

Compared with the immediately preceding March 2026 quarter, total revenue increased from ₹214.16 crore. Operating revenue also rose from ₹195.90 crore in March 2026 to ₹234.74 crore in June 2026.

Net profit reaches ₹89.15 crore

ARCIL reported quarterly net profit of ₹89.15 crore for Q1 FY27. This was higher than ₹57.83 crore in Q1 FY26 and ₹82.23 crore in Q4 FY26. Basic earnings per share were ₹2.74 for the June 2026 quarter, compared with ₹1.78 in the June 2025 quarter and ₹2.53 in the March 2026 quarter.

The company had reported standalone profit for the year of ₹355.32 crore in fiscal 2025, according to information cited from its offer-related material. That document also described ARCIL as the second most profitable private ARC in India during fiscal 2025.

Quarterly profitability in an ARC business can be influenced by recoveries, portfolio-level resolution activity, management and trusteeship fees, portfolio recovery fees, investment income and write-backs. The company has identified these as its principal revenue streams.

Operating profit and expenses

Operating expenses were ₹79.47 crore in Q1 FY27, compared with ₹34.81 crore in Q1 FY26 and ₹87.37 crore in Q4 FY26. Operating profit was reported at ₹133.43 crore, up from ₹71.74 crore a year earlier.

EBITDA stood at ₹134.18 crore in the June 2026 quarter, compared with ₹79.79 crore in the comparable prior-year quarter. Depreciation was ₹0.81 crore, against ₹0.69 crore a year earlier.

The financial data show that revenue and operating profit expanded year on year. However, the provided material does not give a detailed quarter-on-quarter explanation for changes in recoveries, portfolio mix or individual resolutions.

Key Q1 FY27 financial figures

ARCIL's stressed-asset business

ARCIL is an asset reconstruction company operating across India. It acquires stressed financial assets from banks and financial institutions, including non-performing assets, special mention accounts and written-off accounts. It then implements resolution strategies intended to maximise recovery and optimise the value of those assets.

Its operating verticals include corporate loans, SME and other loans, and retail loans. The company uses several acquisition structures, including cash acquisitions, co-investor acquisitions, ordinary security receipt acquisitions and structured acquisitions.

The business model is tied to the health of the banking system's stressed-asset market and the pace of resolution activity. ARCIL's role is to enable banks and financial institutions to transfer stressed exposures while pursuing recoveries through specialised resolution processes.

First-mover position in the sector

ARCIL was incorporated in February 2002 and received its RBI certificate of registration on 29 August 2003 under the SARFAESI framework. The company states that it was the first ARC incorporated in India and completed its first acquisition in December 2003.

As of 31 March 2025, ARCIL reported assets under management of ₹16,852.57 crore. The company was described in the provided material as the second-largest ARC in India by AUM at that date. Its investor presentation describes the company as a two-decade-old stressed-asset resolution platform.

The sector operates within a regulated framework and is closely connected to banking-sector asset quality, recovery mechanisms and insolvency processes. ARCIL's stated resolution tools include restructuring, settlement, collections and enforcement of rights on underlying securities.

Listing and ownership context

ARCIL successfully listed on the NSE and BSE in September 2026. Its IPO issue size was stated as ₹732.97 crore. The company's promoters named in the supplied material are Avenue India Resurgence Pte. Ltd. and State Bank of India.

The investor presentation dated 6 October 2026 included performance highlights for the quarter ended 30 June 2026. It also carried a standard safe-harbour statement saying that the presentation was prepared for information purposes and did not constitute an offer or recommendation to purchase securities.

The listing gives investors a publicly traded route to track an Indian ARC's recovery-led business model. Quarterly revenue and profit trends will remain relevant because they provide measurable indicators of operating performance.

Reported Q2 figures need context

The supplied data also references a Q2 FY26-27 entry dated 29 October 2026, stating gross profit of ₹274 and net profit of ₹143. The same extract refers to revenue earned of ₹274, but it does not specify the unit or provide a detailed financial statement.

Because the available Q2 extract does not identify a unit, it cannot be directly compared with the crore-denominated quarterly financial table. The figures should therefore be read separately from the detailed Q1 FY27 financial data.

A full quarterly filing or investor presentation would be required to establish the precise accounting line items, units and period comparison for the referenced Q2 numbers.

Market relevance for investors

For investors, ARCIL's June-quarter results show higher revenue and net profit than in the year-earlier period. The improvement in operating revenue is notable because it formed nearly all of total quarterly revenue in the supplied data.

At the same time, ARCIL operates in a business where financial outcomes depend on resolution and recovery activity across acquired portfolios. The available information does not provide a forecast or guidance for future quarters, and no conclusion should be drawn beyond the reported figures.

ARCIL's next disclosures, including quarterly results, regulatory filings and investor communications, will provide further information on its financial performance after listing.

Conclusion

ARCIL reported Q1 FY27 total revenue of ₹235.49 crore and net profit of ₹89.15 crore, both above the corresponding figures in Q1 FY26. The company entered the listed market in September 2026 with operations centred on acquiring and resolving stressed assets. Investors will look to subsequent official filings for detailed updates on recovery activity, portfolio performance and reported quarterly financial metrics.