Growing stress in the mid-sized corporate segment is driving a fresh wave of non-performing asset (NPA) sales to asset reconstruction companies (ARCs), marking a shift from lumpy, large-ticket resolutions that dominated last year. Industry data show a steady acceleration in dues being acquired by ARCs this fiscal – from Rs 16,876 crore in Q1 to Rs 37,382 crore in Q2, and to Rs 69,331 crore by Q3, over four times the first-quarter level. Cumulatively, dues acquired by ARCs up to the third quarter rose to Rs 1.24 lakh crore in FY26 from Rs 1.14 lakh crore in the year-ago period, reflecting a steady year-on-year growth along with the sequential acceleration.