Aarvi Encon Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Aarvi Encon Ltd filed with BSE on 17 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Aarvi Encon reported consolidated revenue from operations of ₹649.85 crore for FY2025-26, up from ₹510.39 crore in the prior year, with EBITDA rising to ₹24.93 crore and Profit After Tax growing to ₹17.62 crore from ₹10.04 crore. Management said international revenue grew 73% and profit after tax from overseas operations increased 179%, with new operations added in Malaysia, UAE and Indonesia. The Board recommended a final dividend of 20%, or ₹2.00 per equity share of ₹10 each, and the company's shares were listed on BSE on August 6, 2026 in addition to the existing NSE listing.
Numbers mentioned
Revenue from Operations (consolidated): ₹649.85 crore (FY2025-26)
p. 8
“On a consolidated basis, Revenue from Operations increased to ₹649.85 crore from ₹510.39 crore in the previous year, representing a growth of over 27%.”
Jaydev V. Sanghavi, page 8 of the filed PDF · View the filing
EBITDA: ₹24.93 crore (FY2025-26)
p. 9
“Our profitability also improved significantly. EBITDA increased to ₹24.93 crore from ₹15.86 crore, while Profit Before Tax increased to ₹19.93 crore from ₹11.22 crore.”
Jaydev V. Sanghavi, page 9 of the filed PDF · View the filing
Profit After Tax: ₹17.62 crore (FY2025-26)
p. 9
“Profit After Tax grew to ₹17.62 crore, compared with ₹10.04 crore in the previous year, and Basic Earnings Per Share improved to ₹11.90.”
Jaydev V. Sanghavi, page 9 of the filed PDF · View the filing
Net Worth: ₹137.29 crore (FY2025-26)
p. 9
“Our balance sheet became stronger during the year, with Net Worth increasing to ₹137.29 crore.”
Jaydev V. Sanghavi, page 9 of the filed PDF · View the filing
International business revenue growth: 73% (FY2025-26)
p. 9
“Revenue from international business grew by 73%, while Profit After Tax from overseas operations increased by 179% over the previous year.”
Jaydev V. Sanghavi, page 9 of the filed PDF · View the filing
Final dividend: 20%, i.e., ₹2.00 per equity share of ₹10 each (FY2025-26)
p. 7
“The Board has also recommended a final dividend of 20%, i.e., ₹2.00 per equity share of ₹10 each, subject to the approval of the Members at this 38th Annual General Meeting.”
Virendra D. Sanghavi, page 7 of the filed PDF · View the filing
Working capital days: 58 days (FY2025-26)
p. 13
“Currently, we are at 58 days. I think the end of year last”
Jaydev Sanghavi, page 13 of the filed PDF · View the filing
Current manpower: 8,500 (Current)
p. 12
“Current manpower is 8,500, what manpower, average building per employee?”
Jaydev Sanghavi, page 12 of the filed PDF · View the filing
Average billing per employee: 65,000 per man month (Current)
p. 12
“Average billing is in the range of 65,000 per man month.”
Jaydev Sanghavi, page 12 of the filed PDF · View the filing
EBITDA margin - India business: 3.16% (Current)
p. 13
“But EBITDA for India is in the range of, I think, 3.16%, and international is around 3.78% at the moment.”
Jaydev Sanghavi, page 13 of the filed PDF · View the filing
UAE revenue: 37 crore (FY2025-26)
p. 13
“So, UAE, we did around… around 37 crore, top line, with, profit margins of around… 18 to 19%.”
Jaydev Sanghavi, page 13 of the filed PDF · View the filing
Indonesia revenue: 31 crore (FY2025-26)
p. 13
“Indonesia, was, we did around 31 crore, and, marginal profit in Indonesia, at, it was at 1%, mainly, that…”
Jaydev Sanghavi, page 13 of the filed PDF · View the filing
Qatar revenue: 6 crore (FY2025-26)
p. 13
“In Qatar, we did a top line of 6 crore, with a marginal loss.”
Jaydev Sanghavi, page 13 of the filed PDF · View the filing
Revenue from low margin clients: approximately 30% (FY2025-26)
p. 13
“Approximately, I think, 30% of the revenue came from the low margin, but they help us to… these are, some of them are multinational companies, this help us to grow, go to their, international offices internationally.”
Jaydev Sanghavi, page 13 of the filed PDF · View the filing
Revenue concentration from top clients: 80% of revenue from 20% of clients
p. 14
“So, 80-20 rule applies, 80% of the revenue comes from 20% of our clients, and if I see historically, in terms of quarter on quarter, I think 90% plus clients have been retained by, Aarvi Encon year on year, so…”
Jaydev Sanghavi, page 14 of the filed PDF · View the filing
Cost plus contract mix: approximately 60%, margin 5 to 12%
p. 14
“So, cost plus would be approximately 60%, with a margin ranging from 5 to 12.”
Jaydev Sanghavi, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 10% to 15% · FY2027
stated as an aspiration by Jaydev Sanghavi
p. 12
“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.”
Jaydev Sanghavi, page 12 of the filed PDF · View the filing
Manpower headcount — between 8,500 to 9,500 people · FY2027
stated as an aspiration by Jaydev Sanghavi
p. 12
“I presume we should be between 8,500 to 9,500 people for the current year.”
Jaydev Sanghavi, page 12 of the filed PDF · View the filing
Business portfolio mix — approximately 60% India Staffing Services, 20% India Operation & Maintenance Services and 20% International Business
stated as an aspiration by Jaydev V. Sanghavi
p. 9
“Our long-term vision remains clear—to build a balanced business portfolio with approximately 60% India Staffing Services, 20% India Operation & Maintenance Services and 20% International Business.”
Jaydev V. Sanghavi, page 9 of the filed PDF · View the filing
Borrowing/fundraising plans — no borrowing or fundraising planned
stated firmly by Jaydev Sanghavi
p. 13
“We are not planning to go for any borrowing or fundraising at the moment.”
Jaydev Sanghavi, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said labor cost is negotiated for better margins and cost reductions are being pursued at multiple locations, along with combining service lines for improved margin.
Answered by Jaydev Sanghavi
Asked by Ms. Lekha Shah: What is the company doing to improve profit margin?
p. 12
“So, in our business, the major cost is the, human, is the people as the cost, a major cost. And we try to negotiate the best price, to improve our margin.”
Jaydev Sanghavi, page 12 of the filed PDF · View the filing
Management pointed to renewable energy and manufacturing verticals as growth drivers and discussed expansion into international markets.
Answered by Jaydev Sanghavi
Asked by Ms. Lekha Shah: What are the company's key growth targets for the next 3 to 5 years?
p. 12
“We had identified Renewable a couple of years back, and now it forms the part of our growth strategy.”
Jaydev Sanghavi, page 12 of the filed PDF · View the filing
Management described use of CRM tools, an AI-based recruiting tool, and new payroll and invoicing software.
Answered by Jaydev Sanghavi
Asked by Ms. Prakashini Shenoy: How does the company adopt digital technology to increase productivity, and does it use AI?
p. 12
“We use CRM for sales activity, we use, for recruiting, we use, AI-based tool, what we have, along with our partners, what we have developed, which we use, for first level of calling, it has, helped us to increase the efficiency of our recruiters, the, number of hiring.”
Jaydev Sanghavi, page 12 of the filed PDF · View the filing
Management said the working capital cycle is currently at 58 days and they are working to reduce it.
Answered by Jaydev Sanghavi
Asked by Keshav Garg: What is the working capital target and current level?
p. 13
“Currently, we are at 58 days. I think the end of year last”
Jaydev Sanghavi, page 13 of the filed PDF · View the filing
Management said most clients have year-on-year escalation clauses, while some fixed-price contracts run 2-3 years but carry sufficient margin buffer.
Answered by Jaydev Sanghavi
Asked by Keshav Garg: What percentage of fixed-price contracts have an annual salary escalation clause, and what is the margin risk without escalation?
p. 14
“Most of the clients whom we are dealing with have an escalation clause of year on year. Certain clients do have, a fixed price for 2 years, 3 years, but we have sufficient margin to take care of it.”
Jaydev Sanghavi, page 14 of the filed PDF · View the filing
Risks flagged
International expansion requires upfront investment before becoming profitable
p. 12
“Challenging why? Because it takes a certain investment from our side initially for a couple of years before we start making money.”
Jaydev Sanghavi, page 12 of the filed PDF · View the filing
Marginal loss in Qatar operations
p. 13
“In Qatar, we did a top line of 6 crore, with a marginal loss.”
Jaydev Sanghavi, page 13 of the filed PDF · View the filing
Low marginal profit in Indonesia operations
p. 13
“Indonesia, was, we did around 31 crore, and, marginal profit in Indonesia, at, it was at 1%, mainly, that…”
Jaydev Sanghavi, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.