Press Release
oi-Oneindia Staff
Mumbai: Credit rating agency Infomerics Ratings has upgraded the long-term and short-term ratings on the bank facilities of CFM Asset Reconstruction Private Limited (CFM ARC), citing strong recovery performance, growth in assets under management (AUM), comfortable capitalisation and the extensive experience of its management.
Infomerics has upgraded CFM ARC’s long-term rating to ‘IVR A+/Stable’ from ‘IVR A-/Positive’, while the short-term rating has been upgraded to ‘IVR A1+’ from ‘IVR A2+’. The total bank loan facilities rated stand at Rs. 275 crore.
Infomerics Ratings upgraded CFM ARC’s long-term rating to ‘IVR A+/Stable’ and short-term rating to ‘IVR A1+’ citing strong recovery performance, AUM growth to Rs 8,295 crore as of June 2026, comfortable capitalisation, and experienced management.
The rating upgrade has been primarily driven by CFM ARC’s healthy recovery performance, with recoveries of Rs. 1,068 crore during Q1FY27 and Rs. 5,399 crore during FY26. The company’s AUM also increased to Rs. 8,295 crore as of June 2026, compared with Rs. 7,844 crore as of March 2026 and Rs. 7,495 crore as of March 2025. The strong recovery momentum was supported by successful resolution of key corporate accounts.
CFM ARC has also demonstrated sustained growth in its asset base. The company acquired assets worth Rs. 1,235 crore during Q1FY27, while cumulative acquisitions since inception stood at around Rs. 17,290 crore. Cumulative recoveries reached approximately Rs. 12,198 crore till June 30, 2026, translating into a recovery rate of around 71%. Security Receipt redemptions stood at Rs. 783 crore during Q1FY27.
The rating action also factors in CFM ARC’s comfortable capitalisation and moderate gearing.
Its Capital to Risk-Weighted Assets Ratio (CRAR) improved to 40.54% as of March 2026 from 30.00% in FY25, while overall gearing moderated to 1.01x as of June 2026, supported by healthy recoveries and lower debt levels. The company’s debt declined to approximately Rs. 447 crore as of March 2026 from around Rs. 641 crore as of March 2025. Ability of the company to scale-up acquisitions while sustaining gearing levels will remain a key monitorable.
Infomerics also highlighted the extensive experience of CFM ARC’s management team as a key rating strength. The company’s Board includes four independent directors and is chaired by Mr. Kishor Kharat, who has multi-decade experience in leading scheduled commercial banks. The senior management team includes Mr. Santanu Sen, MD & CEO, Ms. Nidhi Saharia, Dy. CEO, and Mr. Ankit Kawa, Chief Compliance and Risk Officer.
The agency noted that CFM ARC’s business profile is exposed to certain challenges, including the inherent volatility of recoveries, fixed debt repayment obligations and exposure to floating interest rates. Around 46% of the company’s total debt as of March 2026 carried floating interest rates. The company also operates in an increasingly competitive asset reconstruction market and remains exposed to evolving regulatory and distressed-asset policy risks.
Maintaining a ‘Stable’ outlook, Infomerics expects CFM ARC to continue benefiting from timely recoveries from its AUM, acquisition of new assets at reasonable valuations and maintenance of healthy AUM levels while sustaining moderate gearing. The company is also looking to gradually increase the share of retail assets, with management targeting a shift in the corporate-retail AUM mix from the current 73:27 to 60:40 over the medium term.
About CFM Asset Reconstruction Private Limited
CFM Asset Reconstruction Private Limited was incorporated on July 30, 2015 and received its Asset Reconstruction Company (ARC) licence from the Reserve Bank of India on August 3, 2016, under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.
About Infomerics
Infomerics Valuation and Rating Ltd. is a SEBI-registered and RBI-accredited credit rating agency dedicated to independent, transparent and research-driven ratings. Licensed for credit rating operations since 2015, Infomerics provides ratings across a wide spectrum of borrowers and debt instruments, including MSMEs, large corporates, banks, NBFCs, state governments, municipal bodies, infrastructure projects, REITs and InvITs. The company has a pan-India presence with its Head Office in Delhi, Corporate Office in Mumbai and branches across major cities.
For more information, please visit www.infomerics.com
