Synopsis:
Aarvi Encon shares hit a 20% upper circuit as Q2 revenue rose 31% YoY to ₹159 cr and net profit surged 127% YoY to ₹4.8 cr.
The shares of the Micro-Cap company, specializing in providing technical staffing services and engineering and project-related support to industries like oil and gas, power, and renewable energy, hit a 20 percent upper circuit following their results, with a 127 percent rise in profit.
With a market capitalization of Rs. 206.31 Crores on Friday, the shares of Aarvi Encon Limited hit a 20 percent upper circuit, reaching a high of Rs. 144.03 compared to its previous close of Rs. 120.03.
What Happened
Aarvi Encon Limited, engaged in providing technical staffing services and engineering and project-related support to industries like oil and gas, power, and renewable energy, has announced its Q2 results as follows:
Its Revenue from operations rose by 31 percent YoY from Rs. 121 Crores in Q2FY25 to Rs. 159 Crores in Q2FY26, and it rose by 5 percent QoQ from Rs. 151 Crores in Q1FY26 to Rs. 159 Crores in Q2FY26.
Its Net Profit YoY rose by 127 percent from Rs. 2.11 Crores in Q2FY25 to Rs. 4.80 Crores in Q2FY26, and on a QoQ basis, it rose by 14 percent from Rs. 4.22 Crores in Q1FY26 to Rs. 4.80 Crores in Q2FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 3.24, compared to Rs. 2.85 in the previous quarter.
The company demonstrates decent profitability with a ROCE of 10.8% and ROE of 8.26%, while keeping debt low at a 0.24 debt-to-equity ratio, indicating financial stability and efficient capital use.
The stock looks reasonably valued with a P/E of 14.4 versus the industry average of 23.6, and it maintains a healthy dividend payout of 25.3 percent, reflecting a shareholder-friendly approach.
Company Overview & Others
Aarvi Encon is a trusted partner for companies in the energy sector, specializes in providing technical staffing, engineering services, and O&M solutions by helping them successfully execute multi-million dollar projects by deploying the right talent. Established in 1987 and headquartered in Mumbai, has grown to establish a strong presence across major locations in India and globally, delivering expertise and solutions that drive impactful results.
It serves various industries, with a strong focus on oil and gas, but also works in power, pipeline, renewable energy, and metro rail sectors. The company is ISO 9001:2015 certified and offers both project-based and long-term staffing, along with services like engineering design, inspection, operation, and maintenance.
The company has been creating value for clients in India and overseas by delivering world-class engineering and manpower outsourcing services. The company’s marquee clients include BPCL, CPCL, CAIRN, BECHTEL, Bharat Oman Refineries Ltd, and Cameron.
Written by Sridhar J
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