Press Release

Premier ARC October 07, 2026 To, To, National Stock Exchange of India Limited BSE Limited Corporate Action Department Corporate Relationship Department Exchange Plaza, C-1 Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Fort, Mumbai – 400051 Mumbai - 400 001 Symbol: ARCIL Scrip Code: 544921 Dear Sir/ Madam, Sub: Press Release with respect to Financial Results for the quarter (Q1) ended June 30, 2026 Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith the press release being issued by the Company with regard to the Audited Standalone & Consolidated Financial Results of the Company for the quarter (Q1) ended June 30, 2026. We request you to take the above on record. Thanking you, For Asset Reconstruction Company (India) Limited Ameet Ashok Kela Company Secretary and Compliance Officer Membership No.: F7934 Asset Reconstruction Company (India) Limited The Ruby, 10th Floor, 29, Senapati Bapat Marg, Dadar (West), Mumbai 400 028. India Tel: (+91 - 22) 6658 1300 | Fax: (+91 22) 6658 1313/14 |E-mail: investor.relations@arcil.co.in |Website: www.arcil.co.in Corporate Identification Number: U65999MH2002PLC134884 Asset Reconstruction Company (India) Limited Asset Reconstruction Company (India) Limited ARCIL reports Q1FY27 results, PAT doubles to Rs. 143 crore as recoveries up 151%. Recovery led quarter in a seasonally light acquisition period Mumbai, Maharashtra, October 07, 2026: Asset ReconstructionCompany(India) Limited (NSE: ARCIL, BSE: 544921), India’sfirstandlargestprivate asset reconstruction company in India by AUM, Profitability andMarket Share,focusedon acquiring and resolving non-performing assets (NPAs) and stressed loans from banks and financial institutions announced its audited financial results for the quarter ended 30thJune 2026. The financial numbers are basedonInd-AS. Standalone Business Performance: Particulars (INR Crore) Q1FY27 Q1FY26 YoY FY26 FY25 YoY Total Assets Under Management 19,574 16,809 16% 20,150 16,853 20% Acquisition 352.7 502.2 (30%) 5,958.8 3,975.9 50% Recovery 1,066.0 425.0 151% 3,484.0 3,882.0 (10%) Total Income 276.1 128.5 115% 749.5 617.8 21% Profit After Tax 143.1 69.1 107% 407.8 355.3 15% Commentary: • AUMgrew16%YoYtoRs.19,574croreasof30thJune2026vsRs.16,809croreayearago. • ARCIL’sinvestmentinAUMincreased25%YoYtoRs.4,207crore.NetownedfundsstoodatRs.2,792 croreagainstRs.2,598croreayearago. • Acquisitions were Rs. 352.7 crore vs Rs. 502.2 crore in Q1 FY26 and ARCIL’s investments were Rs. 142.9crorevsRs.242.7croreinQ1FY26.Thebusinessislinkedtothelendingcycleandthetimingof stressed asset sales by lenders, with a significant portion of acquisitions and related investments typicallyoccurringinsecondhalf/Q4ofthefinancialyear. • Recoveries rose 151% YoY to Rs. 1,066.0 crore. The cumulative SR redemption ratio improved to 52.5%asofJune2026from50.8%asofMarch2026. • Totalincomeincreased115%YoYtoRs.276.1crore.FeesandotherincomemorethandoubledtoRs. 118.0crorefromRs.57.9crore.Recoveryofpreviouslywritten-offSRs,unrealisedfeesandexpenses contributedRs.120.1croreandwasakeycontributortotheYoYperformance. • Profitbeforetaxrose106%YoYtoRs.192.4crore. • Profitaftertaxrose107%toRs.143.1crore,deliveringaPATmarginofabout52%oftotalincome. • Net worth stood at Rs. 3,222.3 crore and borrowings were Rs. 1,100.3 crore vs Rs. 1,205.5 crore in March26,takingdebt-to-equityto0.34x. • AnnualisedROEandROAwere18.2%and12.8%,respectively. Management Commentary: Commenting on the Company’s Performance, Mr. Phanindranath Kakarla, Managing Director&ChiefExecutiveOfficeroftheCompanysaid, “Q1FY27hasbeenanoutstandingstarttotheyear,settingastrongfoundationforourjourneyasalisted company.Totalincomegrew115%year-on-yeartoRs.276.1crore.Profitbeforetaxmorethandoubledto Rs.192.4crore,whileprofitaftertaxrose107%toRs.143.1crore,translatingintoaPATmarginofabout 52%oftotalincome. This performance was driven by a sharp pick-up in recoveries, which rose 151% to Rs. 1,066.0 crore from Rs. 425.0 crore in Q1 FY26. Fees and other income doubled to Rs. 118.0 crore. We also strengthened our balance sheet, with net worth rising to Rs. 3,222.3 crore and borrowings declining to Rs. 1,100.3 crore fromRs.1,205.5croreasofMarch2026. Our corporate book led the performance, with recoveries of Rs. 671.0 crore, more than three times the levelrecordedlast year. Retailrecoveries grew 88% toRs. 351.0 crore, demonstratingthe strength ofthe collectionsframeworkwehavebuiltforthissegment.RecoveriesfromSMEandothersegmentsgrew47% toRs.44.0crore.OurcumulativeSRredemptionratioimprovedto52.5%asofJune2026. The operatingenvironment for our industryremains constructive. India's retail credit market continues to deepen, while stress across lending segments is expected to rise. Recovery rates for ARCs have improved steadily,andregulatory initiativessuchas SEBI'sSpecial SituationFunds andtheproposed RBIframework for thesecuritisationofstressed assets are expectedtobroadenthetoolkit available for stressresolution. We believe ARCs are well positionedtoremain oneofthe most effective channels for banks and financial institutionstoresolvestressedassets. As thelargest private ARC inIndiabyAUM andprofitability, wewillcontinue togrow our corporate book by focusing on creditworthy, mid-sized assets. We also intend to increase the share of retail and SME assets, expand our collection-as-a-service offering for banks, and explore opportunities in stressed assets frommicrofinanceinstitutions. We will continue to invest in technology and data analytics to improve recovery efficiency. With a robust acquisition pipeline and a growing capital base, we are confident in our ability to deliver sustained and profitablegrowthinthecomingyears. Our listingonthe NSE andBSE inSeptember 2026 marks adefiningmilestone inourtwo-decade journey. Itbringsgreatervisibility,accesstothecapitalmarketsandawidershareholderbase,whilethecontinued backingofStateBankofIndiaandAvenueCapitalreinforcesconfidenceinourfranchise.Onbehalfofthe Board and management team, I thank our lenders, investors, employees and new shareholders for their trustandsupport.Weremaincommittedtodisciplinedgrowthandlong-termvaluecreation.” About Asset Reconstruction Company (India) Limited -ARCIL Asset Reconstruction Company (India) Limited (“ARCIL”) is anasset reconstructioncompanyoperating across India, engaged inacquiringstressedassets from banks andfinancialinstitutionsand implementingresolution strategiestomaximizerecoveryandoptimizethevalueofthoseassets. ARCIL was incorporated in 2002 and received RBI registration to commence securitisation and asset reconstruction business on 29 August 2003 under the SARFAESI Act. It completed its first stressed-asset acquisitioninDecember2003andhasthereforeoperatedformorethantwodecades.TheCompanyoperate across three business verticals - Corporate loans, SME and Other loans and Retail loans and classify the stressed assets that they acquire basedon the resolution mechanism they employ whichare subject to their internal assessments. They bid for stressed assets and deploy a mix of resolution and collection strategies, basedonthenatureoftheunderlyingloanportfolioorthesinglecreditstressedasset. Safe Harbor Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives are forward-looking statements based on estimates and the anticipatedeffectsoffuture eventsoncurrentanddevelopingcircumstances.Suchstatementsaresubjectto numerousrisksanduncertaintiesandarenotnecessarilypredictiveoffutureresults.Actualresultsmaydiffer materially from those anticipated in the forward-looking statements. The company assumes no obligation to updateforward-lookingstatementstoreflectactualresultschangedassumptionsorotherfactors For further information, please contact Company: Investor Relations Advisors: Asset Reconstruction Company (India) Ltd. Strategic Growth [Showing first 8,000 characters — download PDF for full document]