Synopsis:
Aarvi Encon surged to hit its upper circuit limit after reporting an impressive net profit growth of 62% on a YoY basis, followed by 34% growth in revenue during the same period.
The shares of this technical staffing provider are in focus after reporting a robust financial performance in this quarter. In this article, we will dive more into the details of its performance.
With a market capitalisation of Rs 179 crore, the share of Aarvi Encon Ltd reached a day’s high of Rs 120.55 per share, hitting its 20 percent upper circuit limit. Over the past five years, the stock has delivered an impressive return of 257 percent.
Q1 Highlights
Aarvi Encon’s revenue for Q1 FY26 came in at Rs 151.30 crore, registering a 34 percent growth from Rs 113.33 crore in the same quarter last year. Additionally, on a sequential basis, revenue grew by 5 percent from Rs 144.45 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 62 percent to Rs 4.22 crore in Q1 FY26 as compared to Rs 2.61 crore in Q1 FY25. Additionally, on a QoQ basis, it grew by 43 percent from Rs 2.95 crore.
The stock delivered an ROE and ROCE of 8.26 percent and 10.82 percent, respectively, and is currently trading at a low P/E of 15.32x as compared to its industry average of 24.41x.
Aarvi Encon Limited is a company that specializes in providing technical manpower, offering both permanent and temporary staffing solutions in India and beyond, including countries like Malaysia and Italy.
Their range of services includes procurement support, project management, engineering design, CAD/3D modeling, operations and maintenance, construction supervision, IT staffing, and inspection.
They serve a variety of industries, such as oil and gas, power, petrochemicals, infrastructure, railways, telecom, cement, fertilizers, metals, renewable energy, and many more.
Written by Satyajeet Mukherjee
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