Aarvi Encon LimitedCapital Goods & EngineeringAARVI
Q1 FY27 concall · earnings callAarvi Encon Limited
The company delivered strong revenue growth and profitability in FY26, driven by expanding domestic and international operations, while outlining future growth targets and margin improvement strategies.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from Operations (FY26) | ₹649.85 Cr | 27% | |
| EBITDA (FY26) | ₹24.93 Cr | — | |
| Profit Before Tax (FY26) | ₹19.93 Cr | — | |
| Profit After Tax (FY26) | ₹17.62 Cr | — | |
| Basic Earnings Per Share (FY26) | ₹11.90 | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹131.64 Cr+31.8% YoY+8.8% QoQ | ₹2.37 Cr-0.4% YoY+12.3% QoQ | ₹1.60-0.6% YoY+11.9% QoQ |
| Q2 FY25 | ₹120.96 Cr+18.3% YoY+6.7% QoQ | ₹2.11 Cr-19.2% YoY-19.2% QoQ | ₹1.43-19.2% YoY-18.8% QoQ |
| Q1 FY25 | ₹113.33 Cr+12.4% YoY+9.9% QoQ | ₹2.61 Cr-21.4% YoY-14.1% QoQ | ₹1.76-21.4% YoY-14.1% QoQ |
| Q4 FY24 | ₹103.11 Cr-3% YoY+3.2% QoQ | ₹3.04 Cr-11.9% YoY+27.7% QoQ | ₹2.05-12.4% YoY+27.3% QoQ |
| Q3 FY24 | ₹99.88 Cr-10% YoY-2.4% QoQ | ₹2.38 Cr-10.2% YoY-8.8% QoQ | ₹1.61-10.1% YoY-9% QoQ |
TL;DR
- Consolidated revenue grew over 27% to ₹649.85 crore and PAT increased to ₹17.62 crore.
- International business revenue grew 73% and PAT increased 179%.
- The company listed on BSE in August 2026, enhancing visibility.
- Targeted growth of 10-15% in top line and a 2.5-3% PAT margin for FY27.
- Long-term vision is a portfolio mix of 60% India Staffing, 20% India O&M Services, and 20% International Business.
Said on the call
“Personally, I'm looking at, at the moment, in the range of, 10% to 15% in the growth in the top line, and… and PAT level, should be at 3%, 2.5% to 3% range is what we are looking at.”
From the Q&A
| Topic | What management said |
|---|---|
| Profit Margins and Growth Targets | Management aims to improve margins by negotiating better prices, reducing costs, and shifting the business mix towards international staffing and O&M services, targeting a 2.5-3% PAT margin for FY27 with 10-15% top line growth. |
| Segment Performance and Revenue Mix | India staffing EBITDA margin is about 3.16% and international is 3.78%. Revenue mix is roughly 60% cost-plus contracts (5-12% margin) and 40% lump sum (10-20% margin). 80% of revenue comes from 20% of clients. |
| International Business Details | FY26 international revenue breakdown: UAE ~₹37 crore (18-19% margin), Indonesia ~₹31 crore (~1% margin), Qatar ~₹6 crore (marginal loss). Operations in Saudi Arabia and Oman are yet to contribute significantly. |
| Operational Metrics | Current manpower is 8,500, targeted to reach 8,500-9,500 for FY27, with average billing of ₹65,000 per man month. Working capital days are at 58, down from a higher number. |
| Technology and Contracts | The company uses AI-based tools for initial recruiter calls and has implemented CRM and new payroll software. Most contracts have annual salary escalation clauses; for fixed-price contracts without escalation, margin is protected through engineer replacements. |
Guidance
- Targeting 10-15% growth in top line for FY27.
- Aiming for a PAT margin of 2.5% to 3% for FY27.
- Long-term vision: business portfolio of 60% India Staffing Services, 20% India Operation & Maintenance Services, and 20% International Business.
- Manpower expected to be between 8,500 to 9,500 people for FY27.
- No plans for additional borrowing or fundraising; current borrowing level is sufficient.
Source
Summary written from the transcript filed by Aarvi Encon Limited for the call held on 14 Aug 2026; published 18 Aug 2026, 18:46 IST.
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