Aarvi Encon Limited (AARVI)
₹139.35 +0.25% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Aarvi Encon's revenue was ₹173 Cr (+14.1% year on year, +0.3% on the previous quarter), and net profit ₹6.0 Cr (+42.0% year on year); the operating margin was 2.6%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹173 | +14.1% | +0.3% |
| Operating profit | ₹4.5 | -9.0% | -34.1% |
| Net profit | ₹6.0 | +42.0% | +30.8% |
| EPS (₹) | 4.04 | +41.8% | +30.7% |
| Operating margin | 2.6% | — | — |
AARVI delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 82.95% of the AARVI shares traded on NSE were taken to delivery, against the stock's own 20-session average of 73.53%. That is higher than usual for this stock. Turnover was only ₹3 lakh, so a handful of trades can move this figure. Volume was 0.3 times its average, well below normal.
Delivery in the last 5 sessions: 85.9% · 86.9% · 58.5% · 75.7% · 83.0%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Aarvi Encon has informed the exchanges that it was included in Dun & Bradstreet's 'Leading SMEs of India 2026 - Business Enterprises of Tomorrow 2026' publication. The company is listed at Serial No. 119 under the Services category among approximately 13,610 featured enterprises. The announcement also reiterated the company's operational footprint spanning 38 years, with 13 offices and over 8,000 engineers deployed across India and the Middle East. This is a non-financial brand recognition and has no direct impact on revenue or earnings.
- Listed at Serial No. 119 in Dun & Bradstreet's Leading SMEs of India 2026
- Publication covers approximately 13,610 enterprises across India
- Highlights an operational track record spanning over 38 years
- Company currently operates 13 offices and deploys over 8,000 engineers across India and the Middle East
Aarvi Encon Limited released its updated corporate investor presentation for September 2026, outlining its business model and recent financial performance. In Q1 FY27 (June 2026 quarter), the company recorded operational revenue of ₹1,727 million (₹172.7 crore) with an EBITDA margin of 2.61% and PAT of ₹60 million (₹6.0 crore, margin 3.47%). Active manpower deputation reached 8,288 personnel compared to 8,272 in FY26, with 89% of Q1 FY27 sales coming from domestic operations and 11% internationally. Net debt-to-equity stands low at 0.10x with promoter holding at 73.36% as of June 30, 2026.
- Q1 FY27 operational revenue reported at ₹1,727 Mn with EBITDA margin of 2.61% and PAT of ₹60 Mn (3.47% margin)
- Total technical manpower deputed reached 8,288 professionals as of Q1 FY27 versus 8,272 in FY24-FY26
- Net debt-to-equity ratio stood at 0.10x for FY26, with FY26 ROCE reported at 13.80% and ROE at 12.39%
- Sales geographic split for Q1 FY27 stood at 89% India and 11% International
Aarvi Encon Limited has announced that its Key Managerial Personnel will participate in an investor meeting via video conference with a group of investors on September 23, 2026. The discussions will center on publicly available information concerning the company and industry trends. The company confirmed that no unpublished price sensitive information (UPSI) will be disclosed. This is a routine institutional interaction for the Rs 209 Cr market cap company, which reported TTM revenue of Rs 671 Cr.
- Key Managerial Personnel to meet group of investors on September 23, 2026
- Meeting to be conducted via Video Conferencing
- Discussions restricted to public domain industry and company information with no UPSI shared
- Announcement dated September 15, 2026 under Regulation 30 of SEBI LODR Regulations
Aarvi Encon Limited has received four work orders totaling Rs 174.73 crore (excluding taxes) from Certification Engineers International Limited (a subsidiary of Engineers India Limited). The contracts entail hiring of onshore, offshore, and technical manpower over a 3-year execution period from September 1, 2026, to August 31, 2029. The aggregate contract value represents ~26.0% of Aarvi's TTM revenue (Rs 671 Cr) and ~83.6% of its market capitalization (Rs 209 Cr), providing annual revenue visibility of ~Rs 58.24 crore.
- Secured 4 work orders with an aggregate value of Rs 174,73,04,148 (~Rs 174.73 Cr) excluding taxes
- Contract duration spans 3 years from September 1, 2026 to August 31, 2029 (~Rs 58.24 Cr/year)
- Largest order is Rs 92.43 Cr for onshore manpower, followed by Rs 42.04 Cr for offshore projects
- Client is Certification Engineers International Limited (a wholly owned subsidiary of Engineers India Limited)
Aarvi Encon Limited has informed the exchanges about the demise of Mr. Reyaz Khan on August 20, 2026. Mr. Khan served as General Manager of the Kolkata Branch and was designated as Senior Management Personnel. He had been associated with the company since 2008, overseeing operations in the Kolkata region for around 18 years.
- Demise of Mr. Reyaz Khan, General Manager – Kolkata Branch, on August 20, 2026
- Mr. Khan was part of the company's designated Senior Management Personnel
- He joined Aarvi Encon in 2008, leading regional branch operations
Aarvi Encon Limited has received a domestic work order worth ₹30.63 crore (excluding taxes) from Mahanagar Gas Limited (MGL). The contract entails providing manpower services for the operations of CNG stations across a three-year period from September 1, 2026 to August 31, 2029. This order represents approximately 4.56% of Aarvi Encon's TTM revenue of ₹671 crore, translating to an annualized run rate of roughly ₹10.21 crore per year.
- Total order consideration is ₹30,63,27,576 (excluding applicable taxes)
- Contract duration spans 3 years from September 1, 2026 to August 31, 2029
- Scope involves hiring services/manpower for the operation of MGL CNG stations
- Order size represents ~4.56% of TTM revenue (₹671 Cr) and ~13.3% of current market cap (₹230 Cr)
Aarvi Encon Limited announced the voting results for its 38th Annual General Meeting held on August 14, 2026. Shareholders approved all four ordinary resolutions with over 99.99% majority, including the adoption of FY26 standalone and consolidated financial statements and the re-appointment of director Mr. Jaydev Sanghavi. Notably, a final dividend of Rs 2 per equity share was approved for FY26. Total votes polled were 11,901,675, representing an 80.18% turnout on total outstanding shares of 14,844,100.
- Approved final dividend of Rs 2 per equity share for the financial year ended March 31, 2026
- Total voter turnout reached 80.1778% with 11,901,675 votes polled out of 14,844,100 total shares
- All 4 ordinary resolutions were passed with over 99.99% voting in favor
- Total number of shareholders on the record date (August 7, 2026) stood at 8,534
Aarvi Encon Limited has disclosed the transcript of its 38th Annual General Meeting held on August 14, 2026. Management reviewed FY26 financial performance, highlighting consolidated revenue of ₹649.85 crore (up over 27% YoY) and net profit of ₹17.62 crore (EPS of ₹11.90). The company also reiterated its recent direct listing on the BSE on August 6, 2026, and noted robust overseas growth with international revenue increasing 73% and overseas PAT rising 179%.
- FY26 consolidated revenue rose over 27% to ₹649.85 crore compared to ₹510.39 crore in FY25
- Consolidated PAT grew to ₹17.62 crore with basic EPS reaching ₹11.90
- International business expanded strongly, delivering 73% revenue growth and a 179% increase in overseas PAT
- Successfully listed equity shares on the BSE on August 6, 2026, complementing its NSE listing
- Recommended a final dividend of 20% (₹2.00 per equity share of ₹10 face value)
Aarvi Encon Limited concluded its 38th Annual General Meeting on August 14, 2026, where shareholders approved a final dividend of ₹2 per equity share for FY26. This dividend represents a payout of approximately 16.8% of the FY26 EPS of ₹11.89 and a yield of 1.29% at current prices. The company formally adopted its FY26 audited financial statements, which showed a revenue of ₹649.86 Cr, a 27% increase over FY25. Management reiterated its focus on geographic expansion into Saudi Arabia and the UK to drive future growth.
- Final dividend of ₹2 per equity share approved for the financial year ended March 31, 2026
- FY26 Revenue reached ₹649.86 Cr, marking a significant growth from ₹510.39 Cr in FY25
- Dividend to be credited to eligible members within 30 days of the AGM (by September 13, 2026)
- Statutory Auditor's Report for FY26 confirmed to have zero qualifications, reservations, or adverse remarks
- Re-appointment of Mr. Jaydev Sanghavi as Director was transacted as ordinary business
Aarvi Encon reported a strong bottom-line performance for Q1 FY27, with consolidated Net Profit rising 114% YoY to ₹5.87 Cr compared to ₹2.74 Cr in the previous year. Revenue from operations grew moderately by 7.7% YoY to ₹145.04 Cr. Profitability was supported by a ₹1.86 Cr government subsidy under the PM Atmanirbhar Bharat Rojgar Yojana. While the UAE subsidiary contributed ₹15.67 Cr to the top line, the newly incorporated Saudi Arabian unit is yet to commence revenue generation.
- Consolidated Revenue from Operations increased 7.7% YoY to ₹145.04 Cr.
- Net Profit (PAT) surged 114% YoY to ₹5.87 Cr from ₹2.74 Cr in Q1 FY26.
- Other Income included a ₹1.86 Cr subsidy (first installment) from the PM Atmanirbhar Bharat Rojgar Yojana.
- UAE subsidiary (MNR Technical Services) reported revenue of ₹15.67 Cr and PAT of ₹52.92 lakhs.
- Saudi Arabian subsidiary (Aarvi Energy Company LLC) reported Nil revenue and a net loss of ₹5.74 lakhs for the quarter.
Aarvi Encon reported a 14.1% YoY revenue growth to ₹172.7 Cr in Q1-FY27, driven by a technical workforce of 8,500+ personnel. While EBITDA margins contracted to 2.61% from 3.24% YoY, Net Profit grew 42.9% to ₹6 Cr, supported by higher other income of ₹3 Cr. A key highlight is the Indonesia subsidiary securing two contracts totaling ₹54.4 Cr, representing approximately 8.4% of FY26 revenue. The company maintains high operational stability with a 98% client retention rate and 33 new orders secured during the quarter.
- Revenue increased 14.1% YoY to ₹172.7 Cr, while PAT grew 42.9% to ₹6 Cr in Q1-FY27.
- Indonesia subsidiary secured two manpower supply contracts worth ₹15.9 Cr and ₹38.5 Cr (Total ₹54.4 Cr).
- Maintained a high client retention rate of 98% and added 13+ new clients during the quarter.
- Workforce expanded to approximately 8,500 personnel, up from 6,667 in FY25.
- EBITDA margins saw compression, falling 63 bps YoY to 2.61% due to higher operating expenses.
Aarvi Encon's board has approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. While the specific quarterly figures were not detailed in the announcement text, the company entered this period with a TTM revenue of ₹650 Cr and a PAT of ₹18 Cr. The company maintains a low operating margin profile of 3.5%, which is typical for the technical manpower supply industry. Investors should monitor the full results for progress on the company's 31-32% growth target and geographic expansion into Saudi Arabia.
- Board meeting concluded within 20 minutes on August 12, 2026, to approve Q1 results
- Financials cover the quarter ended June 30, 2026, prepared under IND-AS
- Company reported TTM revenue of ₹650 Cr as of the previous fiscal year end
- Promoter holding remains stable and high at 73.53%
- Operating margins historically remain constrained in the 3-5% range due to tender-based business
Aarvi Encon Limited has received formal approval to list and trade its equity shares on the Main Board of BSE Limited, effective August 6, 2026. The company, which is already listed on the National Stock Exchange (NSE), will now be dual-listed. This move is intended to enhance the stock's liquidity and provide a broader platform for retail and institutional investors. The shares will trade under the BSE Scrip Code 544850 with a face value of ₹10 each.
- Listing and trading on BSE Main Board to commence on August 6, 2026
- Assigned BSE Scrip Code is 544850 with ISIN INE754X01016
- Equity shares have a face value of ₹10 per share
- Company currently has a TTM revenue of ₹650 Cr and a market cap of ₹232 Cr
Aarvi Encon has scheduled its 38th Annual General Meeting (AGM) for August 14, 2026, to discuss the FY2025-26 annual report. The company reported a strengthened balance sheet with total equity rising to ₹142.06 cr from ₹125.32 cr in the previous year. Net debt decreased to ₹9.44 cr, resulting in a very low gearing ratio of 0.07, down from 0.09. The company continues to operate with a large deployed workforce of over 8,000 professionals, primarily serving the Oil & Gas and infrastructure sectors.
- 38th Annual General Meeting scheduled for August 14, 2026, via video conferencing
- Net debt reduced to ₹9.44 cr in FY26 from ₹11.78 cr in FY25
- Total Equity increased by 13.3% to ₹142.06 cr as of March 31, 2026
- Deployed workforce maintained at over 8,000 skilled professionals globally
- Gearing ratio improved to 0.07, indicating a highly under-leveraged balance sheet
Aarvi Encon Limited has announced August 07, 2026, as the record date for determining shareholder eligibility for its FY26 dividend. The 38th Annual General Meeting (AGM) is scheduled for August 14, 2026, where the dividend will be formally declared. The company reported a TTM PAT of ₹18 Cr on a revenue of ₹650 Cr, maintaining a steady growth trajectory with March 2026 quarterly revenue reaching ₹172.25 Cr. Eligible shareholders can expect payment within 30 days of the AGM approval.
- Record date for dividend eligibility fixed as August 07, 2026
- 38th Annual General Meeting scheduled for August 14, 2026, at 11:00 A.M. IST
- Dividend payment to be processed within 30 days from the date of the AGM
- Company reported TTM revenue of ₹650 Cr with an operating margin of 3.5%
- Promoter holding remains stable at 73.53% as of March 2026
Financial Performance
Revenue Growth by Segment
Consolidated revenue from operations grew 26% YoY to INR 510.75 Cr in FY25. For H1 FY26, operational income reached INR 310.2 Cr, a 32.4% increase YoY. The Placement Services Division is being actively scaled to become a significant revenue contributor.
Geographic Revenue Split
As of Q2 FY26, the geographic revenue split is 88% from India and 12% from International markets. The company operates in the UAE, UK, Indonesia, Oman, Qatar, and is commencing operations in Saudi Arabia.
Profitability Margins
Net Profit Margin for FY25 was 1.67%, a 39.16% decrease from 2.74% in FY24. However, PAT margins improved in Q2 FY26 to 3.02%, up 128 bps YoY from 1.74% in Q2 FY25.
EBITDA Margin
EBITDA margin for FY25 was 2.52%, down 23.94% from 3.31% in FY24 due to higher employee and finance costs. Q2 FY26 EBITDA margin showed recovery at 3.46%, an increase of 181 bps YoY.
Capital Expenditure
The company has no material capital expenditure plans over the medium term as it operates a service-based model. Net worth stood at INR 124 Cr as of March 31, 2025, compared to INR 116 Cr in the previous fiscal.
Credit Rating & Borrowing
CRISIL has assigned a 'Stable' outlook. Adjusted debt to adjusted net worth was 0.21 times in FY25, up from 0.08 times in FY24. Interest coverage ratio moderated to 4.3 times in FY25 from 8.2 times in FY24 due to increased finance costs.
Operational Drivers
Raw Materials
As a service provider, the primary 'input cost' is technical manpower. Employee Benefit Expenses represent 74% of total revenue, amounting to INR 377 Cr in FY25.
Import Sources
Not applicable as the company provides technical manpower services; however, talent is sourced globally with a focus on India and the Middle East.
Key Suppliers
Not applicable for a manpower supply firm. The company relies on its internal database of over 800,000 resumes for talent sourcing.
Capacity Expansion
Current capacity is defined by a database of 800,000+ resumes. Expansion is focused on geographic reach, including the recent incorporation of Aarvi Energy Company in Saudi Arabia and the acquisition of MNR Technical Services in the UAE.
Raw Material Costs
Employee benefit expenses increased 28% YoY to INR 377 Cr in FY25, driven by higher salary costs and branch expansions.
Manufacturing Efficiency
Not applicable. Operational efficiency is tracked via the Net Capital Turnover Ratio, which improved to 7.62 in FY25 from 6.08 in FY24.
Logistics & Distribution
Not applicable; distribution is handled through a network of international and domestic branches.
Strategic Growth
Expected Growth Rate
31-32%
Growth Strategy
Growth will be achieved through geographic expansion into Saudi Arabia and the UK, scaling the Placement Services Division, and diversifying into new industry verticals such as Automobile, Marine, Defence, and Healthcare. The acquisition of MNR Technical Services in the UAE also provides a platform for Middle Eastern growth.
Products & Services
Technical manpower supply (engineers, designers, technicians), project management, pre-commissioning and commissioning services, and operations and maintenance (O&M) staffing.
Brand Portfolio
Aarvi Encon
New Products/Services
Expansion into new verticals like Automobile and Healthcare; expected revenue contribution not specifically quantified but identified as a key growth driver.
Market Expansion
Targeting Saudi Arabia (operations commencing soon), UAE (via MNR acquisition), and the UK.
Market Share & Ranking
The industry is highly fragmented with low entry barriers; specific market share percentage is not disclosed.
Strategic Alliances
Joint venture: Aarvi Encon Staffing Services W.L.L. (Qatar); Associate: PT. Aarvi Encon Services (Indonesia).
External Factors
Industry Trends
The technical staffing industry is evolving toward digitization and niche skill requirements. While Oil & Gas remains dominant (75%), there is a shift toward Renewables and IT sectors.
Competitive Landscape
Intense competition from both domestic and international staffing and engineering service providers due to low entry barriers.
Competitive Moat
The moat is built on a 37-year track record, a massive proprietary database of 800,000+ resumes, and long-standing relationships with Tier-1 clients like Reliance. This is sustainable due to the high cost of recruitment errors in technical engineering fields.
Macro Economic Sensitivity
Highly sensitive to economic cycles in the energy and infrastructure sectors. GDP growth and industrial capex directly correlate with manpower demand.
Consumer Behavior
Client behavior is shifting toward a preference for flexible, temporary technical staffing to manage project-based costs.
Geopolitical Risks
Operations in the Middle East (Oman, Saudi Arabia, UAE, Qatar) expose the company to regional political and socio-economic developments.
Regulatory & Governance
Industry Regulations
Subject to frequent changes in labor laws, government policies, and safety regulations (HSE) across India and the Middle East.
Environmental Compliance
Not disclosed as a significant cost for this service-based business.
Taxation Policy Impact
Current tax was INR 1 Cr on a PBT of INR 11 Cr in FY25. The company is subject to changes in taxation frameworks in multiple international jurisdictions.
Legal Contingencies
The company maintains adequate internal financial controls; specific values for pending court cases or labor disputes are not disclosed in the available documents.
Risk Analysis
Key Uncertainties
Susceptibility to cyclicality in end-user industries (Oil & Gas) and potential revenue loss from contract non-renewal due to client concentration.
Geographic Concentration Risk
88% of revenue is concentrated in the Indian market as of Q2 FY26.
Third Party Dependencies
High dependency on the capital expenditure plans of key clients like Reliance Industries and Tecnimont.
Technology Obsolescence Risk
Risk of falling behind in recruitment technology; mitigated by the implementation of resume data management and HR digitization tools.
Credit & Counterparty Risk
Receivables quality is generally high given the Tier-1 client base, though the company monitors Expected Credit Loss (ECL) as part of its financial reporting.
