ARCIL's 56.84% operating margin trails the peer median
The consolidated quarter had no boost from other income, while a 47.32% tax rate weighed on profit conversion.
Filed 06 Oct 2026, 21:08 IST · after market close · Asset Reconstruction Company (India) Ltd (ARCIL)
Key takeaways
- ARCIL's consolidated operating margin of 56.84% was 0.66 percentage points below the 57.5% median for 128 reported Financial Services peers.
- A 47.32% tax rate reduced the conversion of consolidated profit before tax into net profit, while other income was negative at -3.42.
- Consolidated EPS was Rs 2.74, with interest of 24.99 representing a material charge below operating profit.
Price around the results
Tax and below-operating-profit charges shaped earnings
ARCIL reported consolidated operating profit of 133.43, but interest of 24.99 and depreciation of 0.81 reduced profit before tax to 104.21. Other income was negative at -3.42, so it did not supplement operating earnings. The 47.32% tax rate further limited the conversion of profit before tax into net profit of 54.9.
Operating margin was just below the peer midpoint
ARCIL's consolidated operating margin of 56.84% was 0.66 percentage points below the 57.5% median for 128 Financial Services peers that had reported the same quarter. This places the company below the sector midpoint despite its high operating margin.
Results were filed after market close
The consolidated Q1FY27 results were filed after market close on 06 Oct 2026. The results are therefore too fresh for a post-results share-price reaction to assess.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹235 cr |
| Other income | ₹-3 cr |
| Expenses | ₹101 cr |
| Operating profit | ₹133 cr |
| Operating margin (%) | 56.84% |
| Interest | ₹25 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹104 cr |
| Tax | ₹49 cr |
| Net profit | ₹55 cr |
| EPS (₹) | ₹2.74 |
Operating margin of 56.84% compares with a Financial Services sector median of 57.50% across 128 peers that have reported Q1FY27.
What to watch
- Whether operating margin moves from 56.84% in the next reported quarter.
- Whether the 47.32% tax rate changes materially.
- Whether other income recovers from -3.42.