Retail segment drives 21% sequential rise in ARC acquisitions in Q3FY26
Overall ARC acquisitions rose 19% to Rs 7,995 crore in Q3 FY26, while recoveries grew 45%, led by steady and front-ended retail segment performance
 "Retail segment drives 21% sequential rise in ARC acquisitions in Q3FY26")
The retail segment drove growth of Asset Reconstruction Companies (ARCs) in the September–December quarter of FY26 (Q3 FY26), with 21 per cent sequential growth in acquisitions and 45 per cent growth in recoveries.
In the quarter, overall acquisitions rose 19 per cent to Rs 7,995 crore, compared with Rs 6,720 crore in the previous quarter (Q2 FY26). Of this, retail acquisitions stood at Rs 3,774 crore, while corporate acquisitions (through issuance of Security Receipts) rose 17 per cent quarter-on-quarter (QoQ) to Rs 4,220 crore.
Redemption of Security Receipts increased 13 per cent to Rs 6,595 crore in the December 2025 quarter from Rs 5,827 crore in the September 2025 quarter. Growth in assets under management (AUM) for ARCs, measured by outstanding Security Receipts, rose by Rs 1,400 crore from Rs 893 crore in the previous quarter.
In the same period last year, AUM had recorded negative growth, as Security Receipts redemptions outpaced issuances.
In terms of recovery from AUM, retail recoveries stood at Rs 1,932 crore, compared with Rs 1,335 crore in Q2 FY26. However, recovery in corporate accounts decelerated to Rs 7,273 crore from Rs 8,634 crore.
“What is important in retail recovery, it is much more stable and front ended, contrast to corporate which could be bumpy and uneven. ARCs will have more predictable cash flows, and time to realisation could be shorter,” Hari Hara Mishra, chief executive officer, Association of ARCs, said.
Going forward, retail is expected to continue playing a significant role in the ARC business mix.