Mumbai, May 28 -- Recoveries under the Insolvency and Bankruptcy Code (IBC) declined sharply in 2025-26 as prolonged resolution timelines, high haircuts and a large number of liquidation cases continued to impact the insolvency process, according to a report by ICRA.

The report said recoveries against admitted claims fell to 23 per cent in 2025-26 from 46 per cent in 2024-25, mainly due to a steep drop in recoveries during the second half of the financial year.

At the same time, the number of resolution plans approved by the National Company Law Tribunal (NCLT) under the IBC declined to 225 cases in 2025-26 from 259 cases in the previous year. Cases admitted under the Corporate Insolvency Resolution Process (CIRP) also fell 5 per cent t...