Aarvi Encon's Q2 FY 2025-26 Quarterly Results

Result Summary

• Aarvi Encon Ltd reported a 4.9% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 30.7%.
• Its expenses for the quarter were up by 4.7% QoQ and 28.6% YoY.
• The net profit increased 13.7% QoQ and increased 127.5% YoY.
• The earnings per share (EPS) of Aarvi Encon Ltd stood at 3.22 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Aarvi Encon Ltd is a company that operates in the human resource services industry, specifically providing engineering and technical staffing solutions. Its primary services include recruitment and placement of skilled professionals, mainly focusing on sectors such as oil and gas, power, construction, and other engineering sectors. The company is known for offering contract staffing, manpower outsourcing, and payroll outsourcing services. As of now, there are no specific recent major developments or announcements concerning Aarvi Encon Ltd that are publicly available beyond October 2023.

Revenue

In the second quarter of the fiscal year 2026 (Q2FY26), Aarvi Encon Ltd reported a total income of ₹159.50 crores. This marks an increase of 4.9% compared to the first quarter of the same fiscal year (Q1FY26), where the total income was ₹151.98 crores. Compared to the same quarter in the previous fiscal year (Q2FY25), there was a significant year-over-year growth of 30.7%, as the total income during that period was ₹122.00 crores. This upward trend in revenue indicates an enhancement in the company's income generation over both the quarterly and yearly periods.

Profitability

During Q2FY26, the profit before tax for Aarvi Encon Ltd was reported at ₹5.09 crores, showing a quarter-over-quarter increase of 14.6% from ₹4.44 crores in Q1FY26. On a year-over-year basis, the profit before tax grew by 162.4% from ₹1.94 crores in Q2FY25. The tax expenses for the current quarter stood at ₹0.28 crores, which represents a 21.7% increase from the previous quarter. Notably, tax expenses have shown an unusual year-over-year change due to the negative tax figure in Q2FY25. Consequently, profit after tax for Q2FY26 reached ₹4.80 crores, reflecting a 13.7% increase quarter-over-quarter and a substantial 127.5% increase year-over-year from ₹2.11 crores in Q2FY25. Earnings per share (EPS) for this period was ₹3.22, rising by 13.8% from the previous quarter and 126.8% compared to the same quarter last year.

Operating Metrics

The total expenses for Aarvi Encon Ltd in Q2FY26 were ₹154.42 crores, which is an increase of 4.7% from Q1FY26, where expenses were ₹147.54 crores. Year-over-year, the expenses increased by 28.6% from ₹120.06 crores in Q2FY25. This indicates a consistent rise in operational costs, albeit at a rate slightly lower than the growth in total income. The company's operating performance as measured by these expenses and income has shown positive direction both on a quarterly and yearly basis, with expenses being efficiently managed relative to the increase in income.