Aarvi Encon Limited shareholders approved the adoption of audited standalone and consolidated financial statements for the fiscal year ended March 31, 2026, alongside a final dividend of ₹2 per equity share. The resolutions were passed at the company’s 38th Annual General Meeting held on August 14, 2026, via video conferencing.

The meeting also saw the re-appointment of Jaydev Sanghavi as a director, who retires by rotation. All four ordinary resolutions placed before the members were approved with requisite majorities.

Voting Breakdown

The total number of shares held as on the cut-off date of August 7, 2026, was 1,48,44,100. A total of 1,19,01,675 votes were polled, representing approximately 80.18% of the outstanding shares. Promoter group shareholders, holding 10,889,692 shares, cast 100% of their votes in favour of all resolutions.

Public non-institutional shareholders, holding 3,954,408 shares, participated with 1,011,983 votes polled. While the dividend and financial statement resolutions received near-unanimous support from this segment, the re-appointment of Mr. Sanghavi saw 11 votes cast against by public non-institutional investors.

What the Numbers Show

Promoter group shareholders demonstrated complete alignment with management proposals, voting 100% in favour across all four agenda items. This contrasts with the public non-institutional segment, where participation stood at roughly 25.59% of holdings, indicating a significant disparity in engagement levels between promoter and retail/institutional public shareholders.

Procedural Details

The e-voting process was scrutinized by ADCN & Company (formerly Amrita Nautiyal & Associates), with CS Amrita DC Nautiyal appointed as the scrutinizer. Remote e-voting was conducted from August 11 to August 13, 2026, via the National Securities Depository Limited (NSDL) platform. The equity shares of Aarvi Encon were listed on the Main Board of BSE Limited effective August 6, 2026.

Aarvi Encon Limited (NSE: AARVI) declared a final dividend of ₹2 per equity share for the fiscal year ended March 31, 2026, during its 38th Annual General Meeting held on August 14, 2026. The declaration follows a strong financial performance for FY26, with consolidated revenue from operations rising 27% to ₹649.85 crore from ₹510.39 crore in the prior year.

Profitability metrics improved significantly alongside top-line growth. EBITDA increased to ₹24.93 crore from ₹15.86 crore, while Profit Before Tax (PBT) rose to ₹19.93 crore from ₹11.22 crore. Profit After Tax (PAT) grew 76% to ₹17.62 crore, up from ₹10.04 crore, resulting in a Basic Earnings Per Share (EPS) of ₹11.90. The company’s Net Worth strengthened to ₹137.29 crore, supported by improved operating cash flows and efficient working capital management.

Financial Performance Breakdown

International Expansion Drives Growth

International operations were a key growth driver, with revenue from overseas business surging 73% year-on-year. Profit After Tax from international segments increased by 179%. During FY26, Aarvi Encon strengthened its presence in the United Arab Emirates and Indonesia, established a new office in Malaysia, and expanded operations across Qatar, Oman, and Saudi Arabia.

Specific revenue contributions from key international markets included:

• United Arab Emirates: ₹37 crore revenue with profit margins of 18-19%.
• Indonesia: ₹31 crore revenue with marginal profits (approx. 1%).
• Qatar: ₹6 crore revenue with marginal losses.
• Saudi Arabia & Oman: Revenue yet to materialize significantly, with management hopeful for future contributions.

Strategic Outlook and Operational Metrics

Executive Director and CFO Jaydev Sanghavi outlined the company’s long-term vision to achieve a balanced portfolio comprising approximately 60% India Staffing Services, 20% India Operation & Maintenance (O&M) Services, and 20% International Business. This diversification aims to strengthen recurring revenues and improve overall profitability.

In India, the company established a new Engineering Office in Chennai, intended to evolve into a dedicated engineering center. It also expanded its footprint in the renewable energy sector by providing technical manpower for solar manufacturing O&M services.

Management provided guidance for FY27, targeting top-line growth in the range of 10% to 15% and PAT growth between 2.5% to 3%. The current manpower strength stands at approximately 8,500 employees, with an average billing rate of ₹65,000 per man-month. The company expects the workforce to grow to between 8,500 and 9,500 employees in the coming fiscal year.

Key Resolutions Passed

Shareholders approved several ordinary business items through remote e-voting, including:

• Adoption of audited standalone and consolidated financial statements for FY26.
• Declaration of a final dividend of ₹2 per equity share.
• Reappointment of Jaydev Sanghavi as a director, replacing his term which expired by rotation.

The statutory auditor’s report contained no qualifications or adverse remarks. However, the secretarial auditor’s report included an observation, which was addressed in the Board Report. Dividends will be credited to shareholder accounts within 30 days of the AGM.

What the Numbers Show

The disparity between domestic and international profitability is notable. While India staffing contributes the bulk of revenue, its EBITDA margin is approximately 3.16%, compared to 3.78% for international operations. However, within the international segment, the UAE market delivers significantly higher margins (18-19%) compared to Indonesia (~1%) and Qatar (marginal loss). This suggests that while international expansion drives volume growth, margin quality varies drastically by geography, with the UAE currently being the most lucrative overseas market.