Redemptions of security receipts (SRs) issued by private sector asset reconstruction companies (ARCs) are significantly outpacing new issuances, according to a Crisil Ratings report. In H1FY26, redemptions reached Rs 14,500 crore against Rs 9,600 crore in new issuances. This trend is projected to cause a 4-6% decline in ARCs' assets under management over FY26-FY27. Consequently, ARCs' revenue mix is shifting towards recovery-linked income rather than management fees.