Company and Meeting Details

Meeting Overview

The 38th Annual General Meeting of Aarvi Encon Limited was held on Friday, August 14, 2026, at 11:00 hours (IST) through two-way Video Conferencing. The meeting commenced at 11:00 AM and concluded at 11:40 PM. A total of 53 shareholders were present virtually.

Attendees

Directors Present:

  • Mr. Virendra D. Sanghavi - Managing Director (elected Chairman of the Meeting)
  • Mr. Jaydev V. Sanghavi - Executive Director & CFO (Member of Audit Committee and Stakeholder Relationship Committee)
  • Mr. Devendra J. Shrimanker - Independent Director (Chairman of Audit Committee and Nomination and Remuneration Committee)
  • Mrs. Sonal N. Doshi - Independent Director (Chairperson of Stakeholders Relationship Committee)
  • Mr. Jagat S. Parikh - Independent Director (Member of Audit Committee and Nomination and Remuneration Committee)
  • Mr. Ramamoorthy Ramachandran - Independent Director (Member of Audit Committee)

Key Managerial Personnel Present:

  • Mr. Virendra D. Sanghavi - Managing Director
  • Mr. Jaydev V. Sanghavi - Executive Director & CFO
  • Ms. Leela S. Bisht - Company Secretary & Compliance Officer

Auditors Present:

  • Mr. Jay Shah - Proprietor, M/s Jay Shah & Associates, Statutory Auditors
  • Ms. Amrita Nautiyal - Proprietor, M/s. ADCN & Company, Secretarial Auditor

Other senior management personnel including sales, marketing, accounts, finance, HR, and operations executives also attended the meeting.

Meeting Proceedings and Disclosures

Financial Performance Highlights (FY 2025-26)

Consolidated Financials:

  • Revenue from Operations: ₹649.85 crore (up from ₹510.39 crore in previous year, representing 27% growth)
  • EBITDA: ₹24.93 crore (up from ₹15.86 crore)
  • Profit Before Tax: ₹19.93 crore (up from ₹11.22 crore)
  • Profit After Tax: ₹17.62 crore (up from ₹10.04 crore, representing 75% growth)
  • Basic Earnings Per Share: ₹11.90
  • Net Worth: ₹137.29 crore

International Operations Performance:

  • Revenue from international business grew by 73%
  • Profit After Tax from overseas operations increased by 179% over previous year

Dividend Declaration

The Board recommended a final dividend of 20%, i.e., ₹2.00 per equity share of ₹10 each, subject to approval of members at the AGM.

Auditor Reports

The Statutory Auditors' Report on Standalone and Consolidated Financial Statements contained no qualifications, reservations, adverse remarks, or disclaimers. The Secretarial Audit Report contained an observation, with management providing a detailed explanation in the Board's Report.

Business Updates and Strategic Initiatives

New Listings and Milestones:

  • Successfully listed equity shares on BSE Limited on August 6, 2026 (already listed on NSE since 2017)

International Expansion:

  • Strengthened presence in United Arab Emirates and Indonesia
  • Established new office in Malaysia
  • Continued expansion across Qatar, Oman, and Saudi Arabia

Domestic Expansion:

  • Established new Engineering Office in Chennai to strengthen engineering support capabilities
  • Expanded presence in renewable energy sector by providing specialized technical manpower for Operation & Maintenance services across solar manufacturing projects

Long-term Vision:

  • Target business portfolio: 60% India Staffing Services, 20% India Operation & Maintenance Services, and 20% International Business

Shareholder Q&A Session

Questions raised and management responses:

Margin Improvement Strategy:

  • Focus on negotiating better pricing and cost reductions at multiple locations
  • Implementing combined business model of India staffing, international staffing, and operation & maintenance to improve margins

Growth Targets (3-5 years):

  • Focus on newer verticals including renewable energy and manufacturing
  • Continued international expansion despite initial investment challenges

Digital Technology Adoption:

  • Utilizing CRM for sales activity
  • Using AI-based tools for recruiting (first level of calling)
  • Migrated to newer software for payroll and invoice generation

FY27 Outlook:

  • Revenue growth target: 10-15%
  • PAT margin target: 2.5-3% range
  • Manpower target: 8,500-9,500 people (current: 8,500)
  • Average billing: ₹65,000 per man month

Revenue Breakdown:

  • Low-margin contracts: Approximately 30% of revenue (from long-standing multinational clients)
  • Geographic revenue (International): UAE - ₹37 crore (18-19% margin), Indonesia - ₹31 crore (1% margin), Qatar - ₹6 crore (marginal loss)
  • Working capital days: Currently 58 days (target to improve)

Contract Details:

  • Revenue concentration: 80% of revenue from 20% of clients
  • Client retention rate: 90%+ year-on-year
  • Contract types: 60% cost-plus (5-12% margin), 40% lump sum (10-20% margin)
  • Most contracts include annual salary escalation clauses

Funding Strategy:

  • No plans for borrowing or fundraising
  • Current borrowing level sufficient
  • ₹15 crore in corporate deposit and fixed deposits
  • Operating profits to be utilized for working capital

Voting and Conclusion

The e-voting facility remained open during the AGM and for 15 minutes after conclusion. Results were to be declared within two working days and submitted to stock exchanges. The meeting concluded with a vote of thanks acknowledging shareholders, directors, customers, business partners, auditors, bankers, regulatory authorities, and employees.