{"id":292158,"date":"2026-10-07T12:39:28","date_gmt":"2026-10-07T07:09:28","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=292158"},"modified":"2026-10-07T12:39:28","modified_gmt":"2026-10-07T07:09:28","slug":"asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/","title":{"rendered":"Asset Reconstruction Company Shares Surge 10% to the Upper Circuit After Q1 Profit Doubles: What Is Behind the ARCIL Rally, the Q1 FY27 Numbers, Valuation, Levels and the Risks"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>ARCIL hit the 10% upper band (about Rs 160) from Rs 145.70. Q1 standalone profit Rs 143.14 cr (+107%), revenue Rs 274.03 cr. IPO price Rs 139. P\/E about 13x.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">Asset Reconstruction Company shares jumped 10% to the upper circuit on 7 October, near Rs 160 by my calculation from the Rs 145.70 previous close, after the company reported a Q1 FY27 standalone profit of Rs 143.14 crore, more than double the Rs 69.08 crore of a year ago, on revenue of Rs 274.03 crore, up from Rs 117.87 crore. These were the first results since the 17 September listing, and the stock was already trading about 5% above its Rs 139 issue price, so the profit doubling gave buyers a reason to push it higher. At about Rs 160 the stock is 15% above the IPO price and trades near 13 times FY26 earnings, my calculation, but consolidated profit attributable to the company rose a smaller 54% to Rs 89.15 crore, and ARC earnings are lumpy. So the rally rests on one strong quarter, and the next recoveries and the consolidated numbers will decide whether it lasts.<\/p>\n<\/p><\/div>\n<p>Asset Reconstruction Company shares, which trade as ARCIL on the NSE and BSE, opened at Rs 149 against the previous close of Rs 145.70 and climbed to the 10% upper price band by midday on Wednesday. The Q1 results were approved at a board meeting on 6 October, after market hours.<\/p>\n<p>If you hold ARCIL or follow recent listings, this article covers why the Asset Reconstruction Company shares rose, the ARCIL share price levels, the ARCIL Q1 results with standalone profit of Rs 143.14 crore on revenue of Rs 274.03 crore and the consolidated numbers, the FY26 base and AUM, the asset reconstruction company IPO at Rs 139 with Goldman Sachs in the anchor book and SBI as co-sponsor, valuation, the stressed assets cycle and the risks of buying a stock that has just hit a circuit.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&#038;utm_medium=asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\">Click Here &#8211; Get Free Investment Predictions<\/a><\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#Asset_Reconstruction_Company_Shares_The_ARCIL_Share_Price_Action\" title=\"Asset Reconstruction Company Shares: The ARCIL Share Price Action\">Asset Reconstruction Company Shares: The ARCIL Share Price Action<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#Why_Asset_Reconstruction_Company_Shares_Surged_The_ARCIL_Q1_Results\" title=\"Why Asset Reconstruction Company Shares Surged: The ARCIL Q1 Results\">Why Asset Reconstruction Company Shares Surged: The ARCIL Q1 Results<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#The_FY26_Base_Behind_the_Asset_Reconstruction_Company_Shares_Rally\" title=\"The FY26 Base Behind the Asset Reconstruction Company Shares Rally\">The FY26 Base Behind the Asset Reconstruction Company Shares Rally<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#Asset_Reconstruction_Company_IPO_and_Listing_History_of_Asset_Reconstruction_Company_Shares\" title=\"Asset Reconstruction Company IPO and Listing History of Asset Reconstruction Company Shares\">Asset Reconstruction Company IPO and Listing History of Asset Reconstruction Company Shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#Valuation_of_Asset_Reconstruction_Company_Shares_After_the_Surge\" title=\"Valuation of Asset Reconstruction Company Shares After the Surge\">Valuation of Asset Reconstruction Company Shares After the Surge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#Levels_to_Watch_for_Asset_Reconstruction_Company_Shares\" title=\"Levels to Watch for Asset Reconstruction Company Shares\">Levels to Watch for Asset Reconstruction Company Shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#Risks_Behind_the_Asset_Reconstruction_Company_Shares_Rally\" title=\"Risks Behind the Asset Reconstruction Company Shares Rally\">Risks Behind the Asset Reconstruction Company Shares Rally<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#What_to_Watch_Next_for_Asset_Reconstruction_Company_Shares\" title=\"What to Watch Next for Asset Reconstruction Company Shares\">What to Watch Next for Asset Reconstruction Company Shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#Why_did_Asset_Reconstruction_Company_shares_surge_10\" title=\"Why did Asset Reconstruction Company shares surge 10%?\">Why did Asset Reconstruction Company shares surge 10%?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#What_were_the_ARCIL_Q1_results_for_FY27\" title=\"What were the ARCIL Q1 results for FY27?\">What were the ARCIL Q1 results for FY27?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#What_was_the_Asset_Reconstruction_Company_IPO_price\" title=\"What was the Asset Reconstruction Company IPO price?\">What was the Asset Reconstruction Company IPO price?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#What_is_the_ARCIL_share_price_upper_circuit\" title=\"What is the ARCIL share price upper circuit?\">What is the ARCIL share price upper circuit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#Is_ARCIL_expensive_after_the_rally\" title=\"Is ARCIL expensive after the rally?\">Is ARCIL expensive after the rally?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#Who_owns_Asset_Reconstruction_Company\" title=\"Who owns Asset Reconstruction Company?\">Who owns Asset Reconstruction Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#What_are_the_main_risks\" title=\"What are the main risks?\">What are the main risks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/asset-reconstruction-company-shares-surge-10-percent-q1-profit-doubles-arcil\/#Should_I_buy_Asset_Reconstruction_Company_shares_now\" title=\"Should I buy Asset Reconstruction Company shares now?\">Should I buy Asset Reconstruction Company shares now?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Asset_Reconstruction_Company_Shares_The_ARCIL_Share_Price_Action\"><\/span><strong>Asset Reconstruction Company Shares: The ARCIL Share Price Action<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Measure<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Level<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Note<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Previous close, 6 October<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 145.70<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Before the Q1 results were announced<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Open on 7 October<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 149<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up about 2.3% at the open<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Upper circuit<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 160<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">10% band, my calculation from Rs 145.70<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">IPO and listing price<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 139<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">The stock listed flat on 17 September<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Gain over the IPO price<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 15%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">At about Rs 160, my calculation<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Earlier circuit<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 152.90 on 23 September<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A 10% circuit with heavy volume after listing<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Market capitalisation<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 5,200 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 32.5 crore shares at about Rs 160, my calculation<\/td>\n<\/tr>\n<\/table>\n<p>Asset Reconstruction Company shares move in a 10% price band, so a single session can move them far more than a large-cap, and the latest circuit is the second such move in three weeks.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/screeners\">Check the Univest Screener for live data on newly listed stocks<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Asset_Reconstruction_Company_Shares_Surged_The_ARCIL_Q1_Results\"><\/span><strong>Why Asset Reconstruction Company Shares Surged: The ARCIL Q1 Results<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Metric<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Q1 FY27<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Q1 FY26<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Change<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Standalone revenue from operations<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 274.03 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 117.87 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">More than doubled<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Standalone profit before tax<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 192.4 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 93.5 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up about 106%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Standalone net profit<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 143.14 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 69.08 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up about 107%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Standalone EPS<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 4.41<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not stated<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About one third of FY26 EPS in one quarter<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Consolidated total income<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 214.16 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 117.05 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up about 83%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Consolidated profit before tax<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 104.36 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 75.93 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up about 37%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Consolidated profit attributable to the company<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 89.15 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 57.83 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up about 54%<\/td>\n<\/tr>\n<\/table>\n<p>The gap between standalone and consolidated growth arises because consolidation includes the trusts that hold the stressed assets and the share of security receipt holders, so the headline standalone doubling for Asset Reconstruction Company shares overstates the group&#8217;s growth. Figures are from news reports of the filing, and one report shows a different standalone profit, so check the exchange filing.<\/p>\n<p style=\"margin-top:24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&#038;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track newly listed stocks and Asset Reconstruction Company shares live.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_FY26_Base_Behind_the_Asset_Reconstruction_Company_Shares_Rally\"><\/span><strong>The FY26 Base Behind the Asset Reconstruction Company Shares Rally<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">FY26 metric<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Figure<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Comparison<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Standalone revenue<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 753.04 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up from Rs 596.42 crore<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Standalone profit after tax<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 407.84 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up about 15% from Rs 355.32 crore<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Earnings per share<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 12.55<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Basis for the IPO valuation<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Assets under management<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 20,150 crore at 31 March 2026<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Second-largest ARC by AUM<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">AUM mix<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Corporate 68.75%, retail 23.35%, SME and other 7.70%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Retail is the growth area<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Acquisitions in FY26<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 5,959 crore of stressed assets<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Deal sourcing remains active<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Return on net worth<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 13.95%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Improved from 12.99% in FY24<\/td>\n<\/tr>\n<\/table>\n<p>Q1 profit of Rs 143.14 crore is about 35% of the full-year FY26 profit, which shows how lumpy ARC earnings behind Asset Reconstruction Company shares can be, because recoveries and resolutions arrive in large chunks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Asset_Reconstruction_Company_IPO_and_Listing_History_of_Asset_Reconstruction_Company_Shares\"><\/span><strong>Asset Reconstruction Company IPO and Listing History of Asset Reconstruction Company Shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>ARCIL, the first asset reconstruction company in India, opened its IPO on 9 September 2026 at a price of Rs 139 and was subscribed 20.1 times.<\/li>\n<li>Goldman Sachs took about 41% of the anchor book, according to one analysis, alongside large domestic mutual funds.<\/li>\n<li>The shares listed flat at Rs 139 on 17 September, so listing-day buyers made no gain.<\/li>\n<li>The stock then recovered about 23% from its listing low and hit a 10% circuit at Rs 152.90 on 23 September.<\/li>\n<li>Promoter holding fell from 89.68% to 77.45% after the offer for sale, which widened the free float.<\/li>\n<\/ol>\n<p>The IPO valued Asset Reconstruction Company shares at about 11 times FY26 earnings, which many analysts called a low multiple for a business with profit margins above 50%.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Valuation_of_Asset_Reconstruction_Company_Shares_After_the_Surge\"><\/span><strong>Valuation of Asset Reconstruction Company Shares After the Surge<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Valuation view<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Figure<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Basis<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price to FY26 earnings<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 12.8 times<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 160 on EPS of Rs 12.55, my calculation<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price to annualised Q1 earnings<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 9 times<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 4.41 times four; lumpy, so treat with caution<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price to net worth<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 1.7 times<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Market cap near Rs 5,200 crore on standalone net worth of about Rs 3,079 crore, my calculation<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">IPO valuation<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 11.1 times earnings<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">At Rs 139<\/td>\n<\/tr>\n<\/table>\n<p>Asset Reconstruction Company shares still trade at a single-digit to low-teens P\/E, but ARC earnings depend on recoveries, so a low multiple can reflect lumpy profit and not a bargain.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Levels_to_Watch_for_Asset_Reconstruction_Company_Shares\"><\/span><strong>Levels to Watch for Asset Reconstruction Company Shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Level<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Type<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Why it matters<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 160<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">10% upper circuit<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Locked here, a next-day gap-up is possible; a lift of the circuit would show strong demand<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 152.90<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">23 September circuit price<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">First support after the surge<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 145.70<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Previous close<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A fall back here would erase the gain<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 139<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">IPO and listing price<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Key psychological support<\/td>\n<\/tr>\n<\/table>\n<p>These are reference levels for Asset Reconstruction Company shares from reported prices and not recommendations.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Risks_Behind_the_Asset_Reconstruction_Company_Shares_Rally\"><\/span><strong>Risks Behind the Asset Reconstruction Company Shares Rally<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Lumpy earnings:<\/strong> A strong quarter does not guarantee the next one for Asset Reconstruction Company shares, because recoveries depend on resolutions and court timelines.<\/p>\n<p><strong>Standalone versus consolidated:<\/strong> Consolidated profit grew about 54%, far below the standalone doubling.<\/p>\n<p><strong>Circuit volatility:<\/strong> A 10% band means Asset Reconstruction Company shares can fall as fast as they rose.<\/p>\n<p><strong>Regulation:<\/strong> RBI rules on ARCs, including capital norms, can change returns.<\/p>\n<p><strong>Supply:<\/strong> Further selling by pre-IPO holders could cap the stock.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_to_Watch_Next_for_Asset_Reconstruction_Company_Shares\"><\/span><strong>What to Watch Next for Asset Reconstruction Company Shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>The exchange filing for the exact standalone and consolidated Q1 numbers.<\/li>\n<li>Q2 FY27 results, which will show whether recoveries stay strong.<\/li>\n<li>AUM growth, especially in retail and SME assets.<\/li>\n<li>Whether the stock holds above Rs 152.90 after the circuit.<\/li>\n<li>Any change in promoter holding or institutional stakes.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Asset Reconstruction Company shares hit the 10% upper circuit near Rs 160 on 7 October after Q1 standalone profit doubled to Rs 143.14 crore, taking the stock about 15% above its Rs 139 IPO price. Lumpy ARC earnings and a smaller 54% rise in consolidated profit mean the rally needs follow-through. Consult a SEBI-registered advisor before making any decision.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Why_did_Asset_Reconstruction_Company_shares_surge_10\"><\/span><strong>Why did Asset Reconstruction Company shares surge 10%?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Asset Reconstruction Company shares hit the upper circuit after the company reported a Q1 FY27 standalone profit of Rs 143.14 crore, more than double the year-ago figure.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_were_the_ARCIL_Q1_results_for_FY27\"><\/span><strong>What were the ARCIL Q1 results for FY27?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> For Asset Reconstruction Company shares, standalone revenue was Rs 274.03 crore and net profit Rs 143.14 crore, while consolidated profit attributable to the company was Rs 89.15 crore, up about 54%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_was_the_Asset_Reconstruction_Company_IPO_price\"><\/span><strong>What was the Asset Reconstruction Company IPO price?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Rs 139. The stock listed flat at Rs 139 on 17 September 2026 after the IPO was subscribed 20.1 times.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_ARCIL_share_price_upper_circuit\"><\/span><strong>What is the ARCIL share price upper circuit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> About Rs 160, a 10% band on the Rs 145.70 previous close, my calculation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_ARCIL_expensive_after_the_rally\"><\/span><strong>Is ARCIL expensive after the rally?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> At about 12.8 times FY26 earnings and 1.7 times net worth, my calculations, Asset Reconstruction Company shares are not highly valued, but ARC earnings are lumpy.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Who_owns_Asset_Reconstruction_Company\"><\/span><strong>Who owns Asset Reconstruction Company?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> SBI is a co-sponsor and promoters held 77.45% after the IPO, down from 89.68%, with Goldman Sachs taking about 41% of the anchor book.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_main_risks\"><\/span><strong>What are the main risks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Lumpy earnings, a gap between standalone and consolidated profit, circuit volatility, regulation and share supply.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Should_I_buy_Asset_Reconstruction_Company_shares_now\"><\/span><strong>Should I buy Asset Reconstruction Company shares now?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> This article does not constitute investment advice. The stock has just hit a circuit. Consult a SEBI-registered financial advisor.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Why did Asset Reconstruction Company shares surge 10%?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Asset Reconstruction Company shares hit the upper circuit after the company reported a Q1 FY27 standalone profit of Rs 143.14 crore, more than double the year-ago figure.\"}},{\"@type\":\"Question\",\"name\":\"What were the ARCIL Q1 results for FY27?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"For Asset Reconstruction Company shares, standalone revenue was Rs 274.03 crore and net profit Rs 143.14 crore, while consolidated profit attributable to the company was Rs 89.15 crore, up about 54%.\"}},{\"@type\":\"Question\",\"name\":\"What was the Asset Reconstruction Company IPO price?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Rs 139. The stock listed flat at Rs 139 on 17 September 2026 after the IPO was subscribed 20.1 times.\"}},{\"@type\":\"Question\",\"name\":\"What is the ARCIL share price upper circuit?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"About Rs 160, a 10% band on the Rs 145.70 previous close, my calculation.\"}},{\"@type\":\"Question\",\"name\":\"Is ARCIL expensive after the rally?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"At about 12.8 times FY26 earnings and 1.7 times net worth, my calculations, Asset Reconstruction Company shares are not highly valued, but ARC earnings are lumpy.\"}},{\"@type\":\"Question\",\"name\":\"Who owns Asset Reconstruction Company?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"SBI is a co-sponsor and promoters held 77.45% after the IPO, down from 89.68%, with Goldman Sachs taking about 41% of the anchor book.\"}},{\"@type\":\"Question\",\"name\":\"What are the main risks?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Lumpy earnings, a gap between standalone and consolidated profit, circuit volatility, regulation and share supply.\"}},{\"@type\":\"Question\",\"name\":\"Should I buy Asset Reconstruction Company shares now?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"This article does not constitute investment advice. The stock has just hit a circuit. Consult a SEBI-registered financial advisor.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Asset Reconstruction Company shares hit the 10% upper circuit after Q1 profit doubled. See the results, valuation, levels and risks.<\/p>\n","protected":false},"author":35,"featured_media":292157,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[9452,9453,9451,9454,9455,4633],"class_list":["post-292158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-arcil","tag-arcil-q1-results","tag-asset-reconstruction-company","tag-recent-ipo","tag-stressed-assets","tag-upper-circuit"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["292157"],"rank_math_title":["Asset Reconstruction Company Shares Surge 10%: Q1 Profit Doubles"],"rank_math_description":["Asset Reconstruction Company shares jumped 10% to the upper circuit after Q1 profit doubled to Rs 143 crore. See the results, valuation, levels and risks for ARCIL."],"rank_math_focus_keyword":["Asset Reconstruction Company shares"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2026\/10\/asset-reconstruction-company-shares-surge-10-to-the-upper-circuit-after-q1.webp","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/292158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=292158"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/292158\/revisions"}],"predecessor-version":[{"id":292159,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/292158\/revisions\/292159"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/292157"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=292158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=292158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=292158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}