Aarvi Encon Limited – Investor Presentation Summary
Key Operational Highlights
- Current deployed team strength of more than 4,500 professionals
- Has deployed over 30,000 personnel since inception
- Added more than 10 new clients during Q4 FY26 across diversified sectors
- Maintained a strong client retention rate of 97%
- Secured major domestic orders aggregating to more than ₹200 crore during Q4 FY26
- Secured major manpower and engineering services contracts in UAE and Indonesia
- Successfully deployed manpower for Operation & Maintenance activities across solar module and cell manufacturing projects for more than four clients
Key drivers of operational performance: International business expansion, strong client acquisition and retention, diversification into O&M services
Segment-wise Performance
- Business Mix: Manpower Outsourcing 86%, O&M 14% in FY26
- Geographical Sales: India 87%, International 13%
- Client Type: PSU 13%, Non-PSU 87%
Explanation of significant changes in segment performance: International business showed strong momentum with 73% YoY sales growth and 179% YoY PAT growth
Financial Highlights
Revenue: ₹6,499 Mn (FY26 consolidated)
EBITDA: ₹227 Mn (FY26 consolidated)
PAT: ₹176 Mn (FY26 consolidated)
EPS: ₹11.79 (FY26 diluted)
Margins: EBITDA Margin 3.49%, PAT Margin 2.71% (FY26)
Q4-FY26 Financial Performance (Consolidated):
- Operational Income: ₹1,723 Mn, up 19.2% YoY
- EBITDA: ₹68 Mn, up 54.5% YoY
- PAT: ₹46 Mn, up 53.3% YoY
- EPS: ₹3.07, up 55.1% YoY
- EBITDA Margins: 3.95%, up 91 bps YoY
- PAT Margins: 2.67%, up 59 bps YoY
YoY/QoQ comparison: Q4 revenue grew 2.9% QoQ, EBITDA grew 25.9% QoQ, PAT grew 15.0% QoQ
Drivers of financial performance: Higher revenue growth, operational efficiencies, international business expansion
Key Risks: Not Specified
Geographical Revenue Split
Domestic vs Export/Regional Revenue:
- Domestic: 87% of total sales
- International: 13% of total sales
Regional Breakdown: Operations in UAE, United Kingdom, Indonesia, Malaysia, Qatar
Balance Sheet Snapshot
- Shareholder Funds: ₹1,421 Mn (FY26)
- Non-Current Liabilities: ₹93 Mn (FY26)
- Current Liabilities: ₹855 Mn (FY26)
- Non-Current Assets: ₹619 Mn (FY26)
- Current Assets: ₹1,750 Mn (FY26)
- Trade Receivable: ₹1,024 Mn (FY26)
- Cash and Cash Equivalents: ₹92 Mn (FY26)
- Borrowings: ₹267 Mn (Current ₹243 Mn + Non-current ₹24 Mn) (FY26)
Financial Health Insights: Improved equity base, maintained liquidity position
Capex & Cash Flow Health
Capital Expenditure: Not Specified
Free Cash Flow: Not Specified
Operating Cash Flow: Not Specified
Net Debt Movement: Not Specified
Investment Rationale: Focus on international expansion, higher-margin O&M services, and engineering capabilities
Strategic & R&D Initiatives
- Established new office in Malaysia to support international business expansion
- Continued efforts towards operational stabilization in Qatar operations
- Established new engineering office in Chennai to strengthen engineering and project execution capabilities
- Continued focus on increasing share of higher-margin Operation & Maintenance services
Expected impact on growth: Strengthened international presence and growth opportunities
Strategic Rationale: Expanding into high-growth international markets, diversifying service offerings
Industry Trends & Business Environment
Macro/Industry Trends: Not Specified
Impact on Company: Not Specified
Management Commentary & Growth Outlook
Strategic Outlook: Not Specified
FY Guidance: Not Specified
Market Share Targets: Not Specified
Risks and Opportunities: Not Specified
Capital Market Data (As on 31st March 2026):
- Face Value: ₹10.0
- Market Price: ₹120.7
- 52 Week H/L: ₹152.0/₹88.0
- Market Cap: ₹1,787.5 Mn
- Equity Share Outstanding: 14.8 Mn
- 1 Year Avg Trading Volume: 32.6 ('000)