ARCIL was the first ARC to be incorporated in India and has an established track record of over two decades in the asset reconstruction industry. Its AUM stood at Rs 20,149.99 crore, Rs 16,852.57 crore, and Rs 15,230.03 crore as of March 31, 2026, 2025, and 2024, respectively.
The company maintains a strong market position and financial performance among leading ARCs in India. In FY25, it was the second most profitable private ARC with a PAT of Rs 355.32 crore and had the highest PAT as a percentage of average AUM among the top seven ARCs at 2.22%. It also had the highest return on assets among the top seven ARCs at 11.73%, while its debt-to-equity ratio stood at 0.11, the lowest among the top six private ARCs as of March 31, 2025.
ARCIL claims to have developed expertise in acquiring stressed assets, supported by a structured credit assessment and risk management framework. The total outstanding amount of stressed assets acquired stood at Rs 160,371.66 crore, Rs 135,523.63 crore, and Rs 121,936.70 crore as of March 31, 2026, 2025, and 2024, respectively. The corresponding principal outstanding amount stood at Rs 89,909.34 crore, Rs 72,657.31 crore, and Rs 64,564.54 crore, respectively.
The company has a diversified portfolio across corporate, SME and other, and retail loans. AUM from corporate loans, SME and other loans, and retail loans stood at Rs 13,852.76 crore, Rs 1,552.46 crore and Rs 4,744.76 crore, respectively, as of March 31, 2026. This diversified portfolio provides the company with diverse income streams and reduces its dependence on any single loan segment.
ARCIL has access to a diversified base of sellers of stressed assets. Since inception, it has worked with 32 private sector banks, two co-operative banks, 28 public sector banks, 51 NBFCs, 18 housing finance companies, and seven other selling institutions. This provides the company with multiple sources for acquiring stressed assets and opportunities to work with sellers as co-investors.
ARCIL claims to have multiple mechanisms for resolving stressed assets. These include resolution under the IBC, negotiated settlements with borrowers, restructuring or rescheduling of debt, and sale of underlying assets pursuant to the SARFAESI Act and through the DRT. This provides ARCIL with flexibility to select an appropriate recovery mechanism based on the nature and circumstances of each stressed asset.
The company claims to have a robust collections framework supported by specialised teams and an extensive external network. As of March 31, 2026, it worked with over 218 registered valuers, 206 collection agents, and 988 empanelled lawyers. Collections stood at Rs 3,484.39 crore, Rs 3,882.65 crore, and Rs 3,678.15 crore in FY26, FY25, and FY24, respectively.
ARCIL has maintained a sizable proportion of its rated AUM in the higher recovery-rating categories. AUM rated RR1+/RR1 and RR2 together accounted for 87.58%, 79.27%, and 79.63% of rated AUM as of March 31, 2026, 2025, and 2024, respectively.
The company has demonstrated growth in its financial performance over the last three financial years. Revenue from operations increased from Rs 570.14 crore in FY24 to Rs 596.42 crore in FY25 and Rs 753.04 crore in FY26, while PAT increased from Rs 305.34 crore in FY24 to Rs 355.32 crore in FY25 and Rs 407.84 crore in FY26.
ARCIL claims to have a strong credit profile. It had credit ratings of ICRA AA- (Stable) for bonds/NCD/LTR and CRISIL AA- (Stable) for LTR.
The company has expanded its retail loan portfolio and borrower base. Retail loan AUM increased from Rs 1,942.30 crore as of March 31, 2024, to Rs 4,744.76 crore as of March 31, 2026, while the number of retail borrowers increased by 227.32%.
ARCIL claims to use technology and data analytics across acquisitions, credit assessments, and collections. Its systems include proprietary scorecards, CIC scrubs, asset-tracking and case-management platforms, geo-tracking of field agents, UPI and QR-based payments, heat maps and risk models. It also uses automated systems for sending settlement offers, restructuring proposals, and payment communications to retail borrowers.
ARCIL’s revenue is significantly dependent on its AUM. Its AUM stood at Rs 20,149.99 crore, Rs 16,852.57 crore, and Rs 15,230.03 crore as of March 31, 2026, 2025, and 2024, respectively. Any decline in AUM can reduce management/trusteeship fees and investment income, adversely affecting the company’s revenue and profitability.
ARCIL has received several observations from the RBI relating to areas including KYC, due diligence, acquisition and resolution policies, statutory returns, and internal controls. While the company has responded to these observations and no penalty was imposed in the preceding three fiscals, failure to comply with RBI directions can result in penalties and restrictions and adversely affect its business.
ARCIL acquired 27.04%, 96.24%, and 74.80% of its stressed assets through competitive bidding processes in FY26, FY25, and FY24, respectively. It won bids worth Rs 5,958.80 crore, Rs 3,975.87 crore and Rs 2,068.98 crore, respectively. Inability to win bids or acquire stressed assets at appropriate prices could hurt ARCIL’s growth and financial performance.
As of March 31, 2026, 34.94% of ARCIL’s AUM consisted of stressed assets that had exceeded eight years from the date of acquisition. Inability to recover amounts from these stressed assets in a timely manner or at all can adversely affect the company’s business, financial condition, and cash flows.
Corporate loans constituted Rs 13,852.76 crore (68.75%), Rs 12,720.00 crore (75.48%), and Rs 11,956.40 crore (78.51%) of ARCIL’s AUM as of March 31, 2026, 2025, and 2024, respectively. Any adverse factors affecting stressed assets in the corporate loan segment can negatively impact the company’s recoveries, cash flows, and financial condition.
ARCIL’s top 10 corporate portfolios stood at Rs 6,896.80 crore, Rs 5,127.45 crore, and Rs 5,138.84 crore, representing 22.09%, 30.43%, and 33.74% of AUM in FY26, FY25, and FY24, respectively. Any deterioration in these corporate borrowers can adversely affect the company’s recoveries and financial performance.
There is no readily ascertainable market price for the stressed assets acquired by ARCIL, and their valuation involves subjective judgements, assumptions, and opinions. Any inaccurate assessment of recoverability or reliance on incorrect information provided by borrowers or selling institutions can result in the company paying a higher acquisition price and adversely affect its financial performance.
ARCIL’s consolidated borrowings stood at Rs 1,205.49 crore, Rs 305.93 crore, and Rs 149.95 crore as of March 31, 2026, 2025, and 2024, respectively, while its debt-to-equity ratio stood at 0.41 times, 0.11 times, and 0.06 times, respectively. Inability to service its debt or comply with financial and other covenants under its financing arrangements can adversely affect its financial position and operations.
The offer is entirely an Offer for Sale and ARCIL will not receive any proceeds from the IPO. The proceeds will be received by the selling shareholders. Therefore, the IPO will not directly provide additional capital to the company for its business or growth plans.