Aarvi Encon Limited delivered a strong start to FY27, with standalone net profit surging 114% year-on-year to ₹5.87 crore for the quarter ended June 30, 2026. The Mumbai-based technical manpower outsourcing firm saw its consolidated net profit rise 42% to ₹5.99 crore, underpinned by robust top-line growth and stable operational margins.

Consolidated revenue from operations increased 14% to ₹172.68 crore, up from ₹151.30 crore in Q1FY26. Standalone revenue also expanded 15% to ₹154.30 crore. The Board of Directors approved the unaudited financial results at a meeting held on August 12, 2026.

Financial Performance

The company’s profitability improved significantly across both standalone and consolidated structures. Earnings per share (EPS) on a standalone basis rose to ₹3.95, compared to ₹1.85 in the corresponding quarter of the previous fiscal year. Consolidated basic EPS stood at ₹4.04, up from ₹2.84.

Employee benefit expenses, the largest cost component, grew 19% to ₹130.40 crore on a consolidated basis, reflecting the manpower-intensive nature of the business. Other expenses remained relatively stable at ₹37.79 crore.

What the Numbers Show

A notable divergence exists between revenue growth and tax outflows. While consolidated profit before tax rose 40% to ₹6.24 crore, total tax expense fell sharply to ₹2.47 crore from ₹2.27 crore in Q1FY26, but represented a lower effective tax burden relative to the prior year's exceptional items. More critically, other income contributed ₹3.02 crore to consolidated total revenue, accounting for approximately 17% of the net profit after tax. This highlights a dependency on non-operating income streams, including government subsidies, to bolster bottom-line results.

Regulatory and Operational Notes

The financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) and subjected to a limited review by statutory auditors Jay Shah & Associates. The company continues to monitor the implementation of the New Labour Codes, which were consolidated effective November 21, 2025. Management noted that costs related to billable employees are contractually recoverable from customers, mitigating incremental impact on the statement of profit and loss.

During the year, the company received the first instalment of a subsidy amounting to ₹186.15 lakh under the Pradhan Mantri Viksit Bharat Rozgar Yojana, classified under "Other Income" as per Ind AS 20.