Aarvi Encon Limited has informed the Exchange about Investor Presentation
AARVI · price
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Aarvi Encon reported FY25 operational income of INR 5,104 Mn, up 25.7% YoY, with EBITDA of INR 134 Mn. However, EBITDA margins contracted 47 basis points to 2.63% and net profit declined 11.5% YoY to INR 100 Mn, with PAT margin falling to 1.96% from 2.78%. Q4-FY25 showed stronger momentum with 40.2% YoY revenue growth and EBITDA margin improvement to 3.04% (up 23 bps). The company added 20+ new clients, renewed a work order worth INR 186 crore, and won a INR 38.43 crore order from Gujarat State Petronet. Management attributed margin pressure to ESOP issuance, execution of low-margin contracts, and a sharp doubling of interest costs from INR 15 Mn to INR 31 Mn.
Positive revenue growth driven by client wins is offset by declining profitability and rising finance costs, which doubled YoY. With total borrowings more than doubling to INR 268 Mn and net debt turning positive for the first time, investors should watch whether margin recovery and working capital management can sustain the strong top-line momentum.