Asset Reconstruction Company Q2 FY27 results: net profit ₹157.82 crore

How did Asset Reconstruction Company perform in Q2 FY27?

Consolidated revenue from operations was ₹276.50 crore in Q2 FY27, up 17.8% from ₹234.74 crore in Q1 FY27. Other income was ₹2.04 crore and total expenses were ₹67.19 crore. EBITDA was ₹227.88 crore, up 70.8% from ₹133.43 crore, while the EBITDA margin increased to 82.4% from 56.8%. No year-ago consolidated quarterly figures were available for comparison.

Profit before tax was ₹211.35 crore in Q2 FY27, up 95.0% from ₹108.38 crore in Q1 FY27. After tax of ₹51.12 crore, the company reported a net profit of ₹157.82 crore, compared with ₹54.90 crore in the previous quarter. Profit attributable to owners was ₹153.89 crore, and basic EPS was ₹4.74, compared with ₹2.74 in Q1 FY27.

On a standalone basis, Q2 FY27 revenue was ₹237.46 crore and profit after tax was ₹146.82 crore. Management said standalone financial results provide the truer view of the company’s state of affairs for shareholders, while the consolidated results include the impact of trust consolidations.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹6,354.26 crore and total equity was ₹3,143.25 crore. Borrowings stood at ₹1,224.23 crore and cash was ₹163.96 crore. Trade receivables were ₹43.91 crore and trade payables were ₹0.23 crore. A comparable previous balance-sheet date was not provided, so the direction of change in these balances could not be stated.

For the first half of FY27, operating cash flow was negative ₹10.80 crore, investing cash flow was ₹73.05 crore and financing cash flow was negative ₹56.45 crore. No prior-year first-half cash-flow figures were provided for comparison.

What else did the company announce?

Alongside the results, the board re-appointed Balachander Rajaraman as a non-executive independent director for a second term of three years, effective 1 November 2026. It appointed Sanjay Gulab Vasarkar, Head-Operations, as senior management personnel with immediate effect and re-appointed Deloitte Touche Tohmatsu India LLP as internal auditor for 1 October 2026 to 30 September 2027.

An earlier same-day filing stated that the board approved the appointment of Rathi & Associates as secretarial auditor for five consecutive financial years, from FY27 to FY30-31, subject to shareholder approval. No dividend or fund-raising decision was included in the supplied same-day filing excerpts.

What did Asset Reconstruction Company's management say?

Management declined to provide AUM or acquisition guidance, citing seasonal acquisition volumes, event-driven recoveries and dependence on price discovery. It said the company’s approach was to “buy with discipline, resolve with urgency, and deploy capital with a clear focus on returns.” The company’s share of industry AUM rose from 11% to 15%, while its share of new acquisitions rose from 6% in FY24 to 10% in FY25 and 17% in FY26.

Management said acquisitions were seasonal, with Q1 accounting for 8% of FY26 acquisitions and Q4 nearly 50%, making quarterly results less informative. It also said corporate recoveries are event-based and lumpy, and that recovery of written-off assets will eventually dry down. The Collection-as-a-Service vertical was in the proof-of-concept stage with select non-bank financial companies, with no financial contribution yet specified.

Management said the company would continue acquiring at about 26% of dues and cited a general IRR target of high 20s, or about 20–22%, across the portfolio. It also said the average cash investment ratio was 33% in FY26 deals and was trending to 40% in FY27 acquisitions so far. No analyst questions were recorded in the supplied call summary.

How did Asset Reconstruction Company shares react?

ARCIL rose 1.3% within five minutes of the filing appearing, 5.6% after 15 minutes and 5.6% after 30 minutes. From the pre-results close of ₹145.27, the stock was up 10.4% by the close of the first trading session on the news.

By the next day’s close, the stock was up 6.7% from its pre-results close. By the fifth session, it was down 2.5% from the same close. The Nifty Microcap 250 was down 0.2% on the reaction day, down 3.0% by the next day and down 1.0% by the fifth session; no industry median or earlier results-day moves were provided.