company name reported a consolidated net profit after tax (PAT) of ₹17.62 crore for the financial year ended March 31, 2026 (FY26), marking a robust 75% increase from ₹10.04 crore in FY25. The growth was propelled by a 27% rise in revenue from operations to ₹649.85 crore, reflecting higher business volumes and improved operational efficiencies across its engineering and manpower outsourcing segments. Following these strong results, the Board of Directors recommended a final dividend of ₹2 per equity share for shareholder approval at the upcoming Annual General Meeting (AGM). This performance underscores the company’s ability to scale profitability while navigating rising input costs in the staffing sector.

The company’s standalone performance mirrored this upward trajectory, with standalone PAT rising to ₹11.40 crore from ₹7.73 crore in the prior year, while standalone revenue grew 23% to ₹569.92 crore. The improvement in profitability was attributed to better execution across projects and sustained performance in key geographies, including India and the Middle East. Consolidated EBITDA expanded significantly, supported by effective cost management despite rising employee benefit expenses, which increased to ₹488.80 crore from ₹376.87 crore in FY25.

Financial Highlights

The Board noted that the proposed dividend, if approved, will result in an outflow of approximately ₹297 lakh (excluding taxes). Shareholders holding shares as of the record date, Friday, August 7, 2026, will be eligible for the dividend payment, scheduled for on or before Saturday, September 12, 2026. The dividend is subject to Tax Deducted at Source (TDS) as per the Income-Tax Act, 2025.

Corporate Governance and AGM Details

The 38th AGM of Aarvi Encon Limited is scheduled for Friday, August 14, 2026, at 11:00 A.M. IST. In compliance with Ministry of Corporate Affairs (MCA) circulars, the meeting will be conducted exclusively through Video Conferencing (VC) or Other Audio Visual Means (OAVM). Key agenda items include the adoption of audited standalone and consolidated financial statements, declaration of the final dividend, and the re-appointment of Mr. Jaydev Sanghavi as a Director liable to retire by rotation.

Shareholders can exercise their voting rights through remote e-voting via the National Securities Depository Limited (NSDL) platform. The remote e-voting period begins on Tuesday, August 11, 2026, at 9:00 A.M. IST and ends on Thursday, August 13, 2026, at 5:00 P.M. IST. Members holding shares as of the cut-off date of August 7, 2026, are eligible to vote. The facility to appoint proxies has been dispensed with due to the virtual nature of the meeting.

What the Numbers Show

The financial data reveals a strong operational leverage effect for Aarvi Encon in FY26. While employee benefit expenses—the largest cost component—increased to ₹488.80 crore from ₹376.87 crore in FY25, the proportionate impact on margins was mitigated by top-line growth. The interest coverage ratio improved sharply from 4.65 in FY25 to 7.89 in FY26, indicating enhanced ability to service debt obligations amidst higher operating profits. Furthermore, the debt-equity ratio declined to 0.19 from 0.21, signaling a strengthened capital structure. These metrics suggest that the company’s expansion strategy is translating into scalable profitability rather than just volume growth.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE754X01016/896322fb-60ca-4858-b964-163b26aa0b90.pdf

Aarvi Encon Limited's Board of Directors, at its meeting held on May 22, 2026, approved the audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2026. The statutory audit was conducted by M/s. Jay Shah & Associates, Chartered Accountants, who issued an unmodified opinion on both the standalone and consolidated financial results. The results were reviewed by the Audit Committee prior to board approval, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Consolidated Financial Performance

Aarvi Encon delivered a strong performance on a consolidated basis for FY26, with revenue from operations growing significantly year-on-year. The following table summarises the key consolidated income statement metrics:

Consolidated revenue from operations for FY26 stood at ₹64,985.18 lakhs, compared to ₹51,038.90 lakhs in FY25. Net profit for FY26 reached ₹1,762.05 lakhs against ₹1,004.45 lakhs in the prior year. Employee benefit expenses, the largest cost component, rose to ₹48,880.39 lakhs in FY26 from ₹37,687.23 lakhs in FY25. Total comprehensive income for FY26 was ₹1,913.48 lakhs, compared to ₹1,050.42 lakhs in FY25.

Standalone Financial Performance

On a standalone basis, Aarvi Encon also recorded growth across key metrics for FY26. The table below presents the standalone results:

Standalone revenue from operations for FY26 was ₹56,992.27 lakhs, up from ₹46,408.10 lakhs in FY25. Standalone net profit for FY26 was ₹1,140.29 lakhs compared to ₹773.49 lakhs in FY25.

Exceptional Items

During FY26, the company recognised two exceptional items that impacted the reported profit figures on both standalone and consolidated bases:

• New Labour Code impact: Effective November 21, 2025, the Government of India consolidated multiple labour legislations into four unified labour codes. Based on actuarial valuation of gratuity as on March 31, 2026, the company recognised an increase in gratuity liability of Rs. 147.75 Lacs as an exceptional item. For billable (associate) employees, the company considers these costs contractually recoverable from customers.
• Gratuity Retention Balance written back: The company reviewed the requirement of maintaining the Gratuity Retention Balance in view of the New Labour Code implementation and, considering adequate provision already made through actuarial valuation, wrote back Rs. 114.02 Lakhs as an exceptional item.

The net impact of total exceptional items for FY26 was Rs. 33.74 lakhs on both the standalone and consolidated statements.

Balance Sheet Highlights

The consolidated balance sheet as at March 31, 2026 reflected total assets of ₹23,694.83 lakhs, compared to ₹21,302.94 lakhs as at March 31, 2025. Equity attributable to owners of the holding company stood at ₹14,206.85 lakhs versus ₹12,532.34 lakhs in the prior year. On a standalone basis, total assets were ₹20,562.52 lakhs as at March 31, 2026, against ₹18,937.64 lakhs as at March 31, 2025.

Dividend and Other Disclosures

The Board of Directors has recommended a final dividend of Rs. 2/- per equity share of face value Rs. 10/- each (20% on face value) for the financial year ended March 31, 2026, subject to approval by members at the ensuing 38th Annual General Meeting. The dividend will be paid within 30 days from the date of the AGM, subject to deduction of tax at source. The date of the AGM and the Record Date will be communicated separately.

The company operates in a single business segment — Technical Manpower Outsourcing — and international turnover constituted merely 0.77% of total turnover for the year under review. Expense from equity-settled share-based payment transactions (ESOP) was Rs. 57.24 Lakhs for the period, included within employee benefit expenses. The consolidated group includes four directly held subsidiaries, two indirectly held subsidiaries, and two associate/joint venture entities across India, UAE, UK, Saudi Arabia, Oman, Indonesia, and Qatar.