Upper Circuit Stocks: New listing jumps 10% after Q1 revenue doubles led by recoveries


Shares of the recently-listed Asset Reconstruction Company of India (ARCIL) extended its gains for the third consecutive day to hit a 10% upper circuit on Wednesday, October 7, after the company reported strong earnings in the first quarter of the financial year 2027.

This is the first earnings report from the company after its listing last month.

For the June quarter, ARCIL’s revenue from operations increased by 128% to ₹274 crore from ₹120.2 crore last year, while its total income was up 115% at ₹276.1 crore from ₹128.5 crore. in the same period.

The company’s profit after tax (PAT) in the first quarter came in at ₹143.1 crore, up 107% from last year’s ₹69.1 crore.

The company’s profitability and revenue both received a boost this quarter due to a strong recovery and write-back income of ₹120.1 crore. The figure during the same quarter last year was just ₹3.2 crore.

Its assets under management (AUM) increased 16% to ₹19,574 crore from the previous year’s ₹16,809 crore. However, it was down 2.9% sequentially from ₹20,150 crore.

Its annualised return on equity was at 18.2% in the first quarter compared to 10% in the previous fiscal and its annualized return on assets was at 12.8% from 8.4% in the year-ago period.

ARCIL shares listed on the stock exchanges last month in-line with its issue price of ₹139. The stock hit 10% upper circuit on Wednesday to hit an intraday and fresh post-listing high of ₹160.31. The stock is now up up 15.3% from its issue price.

With this three-day gaining streak, shares of ARCIL have gained nearly 15% during this period.

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