Aarvi Encon delivered exceptional financial performance in Q1 FY27, with standalone net profit surging 114% year-on-year to ₹5.87 crore compared to ₹2.74 crore in the corresponding quarter of the previous year. The Mumbai-based technical manpower outsourcing firm also reported consolidated net profit rising 42% to ₹5.99 crore from ₹4.22 crore in Q1 FY26. According to the latest unaudited financial results approved by the Board of Directors on August 12, 2026, this remarkable profit growth demonstrates the company's operational efficiency and strong market positioning during the quarter.
The company's consolidated revenue from operations increased 14% to ₹172.68 crore in Q1 FY27, up from ₹151.30 crore in the same period last year, driven by strong demand for technical manpower outsourcing services. Standalone revenue also expanded 15% to ₹154.30 crore from ₹134.68 crore in Q1 FY26. As reported in the financial statements prepared in accordance with Indian Accounting Standards (Ind AS), the revenue growth reflects the company's ability to capitalize on market opportunities and maintain operational excellence across both standalone and consolidated structures.
Earnings per share (EPS) on a standalone basis rose significantly to ₹3.95 from ₹1.85 in the corresponding quarter of the previous fiscal year, while consolidated basic EPS stood at ₹4.04, up from ₹2.84. Profit Before Depreciation and Tax (PBDT) grew 40% to ₹6.76 crore in the quarter ended June 2026, compared to ₹4.83 crore in the corresponding quarter of the previous year. Profit Before Tax (PBT) increased 41% to ₹6.24 crore from ₹4.44 crore year-on-year, reflecting the company's strong operational performance and effective cost management during the quarter.
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. However, other expenses remained relatively stable at ₹37.79 crore. The company's operating profit margin (OPM) improved to 2.60% from 3.26% in the previous year, showing enhanced operational efficiency despite the increased manpower costs. During the quarter, 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.
The strong quarterly results demonstrate Aarvi Encon's ability to capitalize on market opportunities and maintain operational excellence. The company continues to monitor the implementation of the New Labour Codes, which were consolidated effective November 21, 2025, with management noting that costs related to billable employees are contractually recoverable from customers. The financial statements were subjected to a limited review by statutory auditors Jay Shah & Associates. The company's consistent growth across key financial metrics, including profitability and revenue, positions it well for continued performance in the current market environment, though management will need to address the 19% increase in employee benefit expenses relative to top-line expansion.
