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Asset Reconstruction Company (India) Ltd

Q2 FY27

Asset Reconstruction Company (India) Q2 FY27 earnings call: Revenue & Margins

Q2 FY27 earnings call: what management guided on revenue, margins and order book.

Price₹142

Market cap₹4.5K Cr

P/E12.9

Updated13 Oct 2026

Read4 min read

What the Q2 FY27 call signalled

2 of 4 strong

RevenueModerate growth

MarginMargins steady

CapexCapex planned

Order bookOrder book rising

The short version

The company expects steady, calibrated, and risk-managed growth, driven by acquisitions and recoveries, with a seasonally light Q1 but stronger activity anticipated later in the year. Profit after tax has grown steadily at about 20% annually over the last three years, from INR239 crores in FY23 to INR408 crores in FY26.

From Asset Reconstruction Company (India) Ltd's Q2 FY27 earnings-call transcript · updated 13 Oct 2026.

Revenue & Sales Performance

Moderate growth

The company expects steady, calibrated, and risk-managed growth, driven by acquisitions and recoveries, with a seasonally light Q1 but stronger activity anticipated later in the year.
Over the last three years, profit after tax grew approximately 20% annually, from INR239 crores in FY23 to INR408 crores in FY26, indicating positive long-term momentum.
Fee income has increased significantly due to growing AUM and enhanced resolution capabilities, with management fees now comprising nearly half of total fees, a trend expected to continue.
Acquisition activity is expected to be robust throughout the year, supported by ample leverage capacity and strong deal pipelines, with a gradual increase in cash acquisitions.

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Profitability & Margins

Profit after tax has grown steadily at about 20% annually over the last three years, from INR239 crores in FY23 to INR408 crores in FY26.
Q1 FY27 showed strong recovery-led profit growth, with PAT more than doubling year-on-year.
Earnings are expected to trend upwards over longer periods due to steady resolution of assets rather than quarter-to-quarter fluctuations.
Operating earnings are supported by a diversified and growing AUM (up 16% YoY) with increasing retail and SME share.
The company maintains a disciplined acquisition strategy focused on buying below intrinsic value and resolving with urgency to generate returns.
Write-backs from recoveries on previously written-off assets add to profit but are event-based/lumpy.

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Capital Expenditure Plans

Capex planned

The company is currently focused on building infrastructure and conducting pilots (POCs) for its Collection-as-a-Service business.
It is collaborating with its own assets and several NBFCs to test and develop this business line.
No specific numeric guidance or committed capital investment figures were provided at this stage.

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Fundraising & Capital Structure

Borrowings saw a sequential decline recently due to seasonality, with peak acquisitions and corresponding debt drawdowns typically occurring at the financial year-end.
Management expects to increase borrowings marginally as acquisition pipelines are strong, especially in the second half of the year.
The company is open to leveraging more for cash acquisitions, with investment share rising from 33% last year to 40% this year.
No explicit guidance on new equity fundraising is provided.

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Order Book & Pipeline

Order book rising

The document does not provide specific details on the current or expected orderbook or pending orders for Asset Reconstruction Company (India) Limited (Arcil). However, insights related to acquisitions and asset management indicate: - Q1 FY27 acquisitions were INR 353 crores, following seasonal patterns, with a strong pipeline of acquisition opportunities expected through the year. - Acquisitions in FY26 show clear seasonality: Q1 at 8% of acquisitions, Q4 almost half. - No explicit numeric guidance on future orderbook or pending orders is given. - Confidence expressed in a strong acquisition pipeline and continued active participation in acquiring stressed assets.

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Frequently Asked Questions

What were Asset Reconstruction Company (India) Ltd Q2 FY27 results?

The company expects steady, calibrated, and risk-managed growth, driven by acquisitions and recoveries, with a seasonally light Q1 but stronger activity anticipated later in the year. Profit after tax has grown steadily at about 20% annually over the last three years, from INR239 crores in FY23 to INR408 crores in FY26.

What is Asset Reconstruction Company (India) Ltd share price analysis?

Asset Reconstruction Company (India) Ltd currently shows a below-average growth signal. The stock trades at a P/E of 12.9 with a market cap of ₹4,546 Cr. Investors should review the full earnings analysis for detailed insights.

Is Asset Reconstruction Company (India) Ltd planning capital expenditure?

The company is currently focused on building infrastructure and conducting pilots (POCs) for its Collection-as-a-Service business.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.