While most investors are chasing the usual suspects, a quiet compounder in the technical staffing space just delivered its best year ever.
Aarvi Encon — India’s pioneer in engineering manpower outsourcing — just reported FY26 results that deserve your attention. The numbers tell a story of accelerating growth, margin recovery, and international expansion.
Here’s what stood out from their Q4-FY26/FY26 Earnings Presentation, but before that:
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Aarvi Encon – Q4 FY26 Financial Highlights
FINANCIAL PERFORMANCE (FY26 Full Year)
- Revenue grew 27.3% YoY to ₹649.9 Cr — highest ever for the company
- EBITDA jumped 69.4% YoY to â‚ą22.7 Cr, with margins recovering to 3.49% (vs 2.63% in FY25)
- PAT surged 76% YoY to ₹17.6 Cr — a significant inflection after two years of declining profits
- Diluted EPS at â‚ą11.79 vs â‚ą6.73 last year (75.2% growth)
- ROE improved to 12.39% and ROCE to 13.80%
Q4-FY26 QUARTERLY HIGHLIGHTS
- Q4 revenue at ₹172.3 Cr — up 19.2% YoY and 2.9% QoQ
- Q4 EBITDA margin expanded to 3.95% — highest in recent quarters
- Q4 PAT at â‚ą4.6 Cr, up 53.3% YoY
OPERATIONAL WINS
- International business grew sales 73% YoY and PAT 179% YoY
- Secured domestic orders worth ₹200+ Cr in Q4 alone — strong revenue visibility
- Won major contracts in UAE and Indonesia
- Opened new offices in Malaysia and Chennai
- Added 10+ new clients in Q4 with a 97% client retention rate
- Deployed O&M manpower for 4+ solar manufacturing clients
SCALE & BUSINESS MIX
- Total manpower deployed jumped to 8,272 in FY26 (from 6,667 in FY25)
- Business mix: 86% Manpower Outsourcing + 14% O&M (higher-margin segment growing)
- Industry mix: Oil & Gas (36%), Engineering (31%), Renewables (18%)
- 87% India, 13% International; 87% Non-PSU clients
BALANCE SHEET
- Trade receivables improved from ₹115.5 Cr to ₹102.4 Cr — better collections
- Net worth grown to â‚ą142.1 Cr (from â‚ą125.3 Cr in FY25)
- Net Debt to Equity at a comfortable 0.10x
As always, this is not a stock recommendation — just our notes to help you stay informed.
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Ekansh Mittal
Research Analyst
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