Aarvi Encon Limited (NSE: AARVI)
Source: Aarvi Encon Limited Annual Report FY 2025-26 (Fiscal Year Ended March 31, 2026)
📋 Quick Facts: Company Snapshot
| Attribute | Disclosed Detail |
|---|---|
| Official Company Name | Aarvi Encon Limited |
| Corporate Identity Number (CIN) | L29290MH1987PLC045499 |
| ISIN | INE754X01016 |
| NSE Symbol & BSE Scrip Code | NSE: AARVI (Listed on NSE Main Board w.e.f. June 24, 2020) |
| Date of Incorporation / Founding Year | Incorporated on December 3, 1987 |
| Founders / Key Founding Figures | Mr. Virendra D. Sanghavi (Managing Director & Founder) |
| Registered Office & Corporate Headquarters | B1-603, 6th Floor, Marathon Innova, Marathon NextGen Complex, Opp. Peninsula Park, Lower Parel (West), Mumbai – 400 013, Maharashtra, India |
| Telephone & Investor Relations Contact | Tel: +91 022-4049 9999 / +91 022-4049 9907 | Email: info@aarviencon.com / cs@aarviencon.com |
| Chairman / Managing Director | Mr. Virendra D. Sanghavi (Managing Director) |
| Executive Director & CFO | Mr. Jaydev V. Sanghavi (Executive Director & Chief Financial Officer) |
| Company Secretary & Compliance Officer | Ms. Leela S. Bisht (ICSI Membership No. A59748) |
| Promoter & Holding Group | Sanghavi Family / Promoter Group (73.53% equity ownership as of March 31, 2026) |
| Industry / Sector Classification | Engineering Support, Technical Workforce Outsourcing, Operations & Maintenance (O&M), Staffing Services |
| Total Employees / Workforce | 8,272 Total Deployed Workforce (312 Core Permanent Corporate Employees and 7,960 Contract Staff & Technical Professionals) |
| Branch Offices / Engineering Hubs | Pan-India presence including Mumbai headquarters and new engineering center in Chennai; International branches/offices in UAE, Oman, Qatar, Saudi Arabia, Indonesia, and Malaysia |
| Countries / Regions Served | India, United Arab Emirates, Sultanate of Oman, State of Qatar, Kingdom of Saudi Arabia, Republic of Indonesia, and Malaysia |
| Statutory Auditors | M/s. Jay Shah & Associates, Chartered Accountants (Firm Registration No. 135424W) |
| Registrar & Share Transfer Agent (RTA) | Bigshare Services Private Limited, Office No. S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East), Mumbai – 400 093 |
🏢 The Corporate Identity: Who They Are & Where They Came From
The Big Picture
Incorporated in 1987 and headquartered in Mumbai, Aarvi Encon Limited has evolved over nearly four decades into one of India’s premier technical manpower outsourcing and engineering service providers. The Company serves as a vital human capital and technical execution partner to core industrial sectors, deploying specialized engineering talent across every phase of a project’s lifecycle—from engineering design and procurement assistance to construction supervision, pre-commissioning, commissioning, and long-term Operations & Maintenance (O&M).
Listed on the Main Board of the National Stock Exchange of India Limited (NSE: AARVI), the Company has built an extensive domestic reach across India while expanding its international footprint across the Middle East and Southeast Asia. Holding enterprise-wide certifications for ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management), and ISO 45001:2018 (Occupational Health & Safety), Aarvi Encon deploys over 8,000 skilled professionals supporting large-scale industrial infrastructure, energy, and process projects.
The Founders, Promoters & Their Legacy
The enterprise was founded by Mr. Virendra D. Sanghavi, a Chemical Engineering graduate from Mumbai University who serves as the Managing Director. Under his stewardship, Aarvi Encon transitioned from an engineering consultancy firm into a manpower supply and technical execution firm. The leadership is complemented by his son, Mr. Jaydev V. Sanghavi, Executive Director and CFO, who joined the business in 1992 and spearheaded the establishment and expansion of the Technical Staffing division starting in 1996, transforming Aarvi Encon into India’s largest technical staffing company.
- Engineered Founding: Established in 1987 to address structural skill deficits across India’s core heavy process industries.
- Family Ownership & Professional Governance: Promoters maintain a controlling 73.53% equity stake, backing executive operations with independent board oversight across audit, nomination, and stakeholders’ committees.
- Long-Term Client Advocacy: Sustained executive leadership has built relationships spanning decades with Indian public sector undertakings (PSUs), multinational EPC contractors, and global blue-chip conglomerates.
The Journey: History & Evolution
Aarvi Encon’s path reflects key milestones in India’s industrial evolution, transitioning from local engineering consulting to a multinational technical workforce provider:
- 1987: Incorporated and launched engineering consultancy services in Mumbai.
- 1996: Diversified into technical manpower deputation to address growing industrial project staffing needs.
- 1997: Executed a major staffing milestone by deputing over 300 engineers to Reliance Petroleum for its DHDS and SRU units.
- 1998: Awarded a major refinery commissioning contract by Hindustan Petroleum Corporation Limited (HPCL).
- 2007: Crossed the 1,000-employee mark across active project deployments.
- 2011: Commenced specialized Operations & Maintenance (O&M) services with HMPL.
- 2013: Rated “SME-1” by CRISIL; total deputed personnel surpassed 2,000 engineers.
- 2015: Achieved ₹ 100 Crore in annual turnover; established wholly owned international subsidiary Aarvi Encon FZE in the UAE.
- 2017: Listed on the NSE Emerge platform; deployed engineering workforce crossed 3,000 professionals.
- 2018: Surpassed ₹ 200 Crore turnover mark; partnered with Bon Accord Employment Services in the UAE.
- 2020: Successfully migrated listing to the Main Board of the National Stock Exchange of India Limited (NSE).
- 2021: Expanded footprint in the Middle East and Southeast Asia by setting up branch offices in Oman and Indonesia.
- 2022: Incorporated a Joint Venture/Associate entity in Qatar (Aarvi Encon Staffing Services W.L.L.) and scaled overall deployed engineering pool beyond 6,000 personnel.
- 2023: Acquired M N R Technical Staffing Company in Dubai to strengthen UAE workforce deputation capability.
- 2024: Incorporated Wholly Owned Subsidiary “Aarvi Energy Company” in the Kingdom of Saudi Arabia.
- 2025: Reached a turnover milestone by crossing ₹ 500 Crore on a consolidated basis.
- 2026: Consolidated Revenue from Operations expanded to ₹ 649.85 Crore, supported by international expansion in Malaysia (Aarvi Energy Services SDN. BHD.) and new engineering center operations in Chennai.
The Corporate Umbrella
The corporate matrix of Aarvi Encon Limited comprises four direct subsidiaries, two step-down subsidiaries, and two associate/joint venture entities operating across domestic and global energy hubs:
- Aarvi Engineering & Consultants Private Limited (India): 100% Wholly Owned Subsidiary providing specialized engineering design, technical consulting, and manpower sourcing within India.
- Aarvi Encon FZE (UAE): 100% Wholly Owned Subsidiary serving as the holding arm for Middle East and Southeast Asian international execution.
- Aarvi Encon Resources Limited (UK): 100% Wholly Owned Subsidiary established to handle European and global business development opportunities.
- Aarvi Energy Company LLC (Saudi Arabia): 100% Wholly Owned Subsidiary incorporated in April 2024 to tap into Saudi Arabia’s energy and infrastructure investments.
- Aarvi Encon LLC (Oman): Step-down subsidiary held through Aarvi Encon FZE, serving heavy industrial clients across the Sultanate of Oman.
- MNR Technical Services LLC (Dubai, UAE): Step-down subsidiary acquired by Aarvi Encon FZE in June 2023 to expand local technical deputation capabilities.
- Aarvi Energy Services SDN. BHD. (Malaysia): Newly incorporated step-down wholly owned subsidiary established under Aarvi Encon FZE effective September 23, 2025.
- PT Aarvi Encon Services (Indonesia): Associate entity (49% equity held via Aarvi Encon FZE) executing power and industrial project staffing.
- Aarvi Encon Staffing Services W.L.L. (Qatar): Joint Venture entity (49% equity held directly by the parent) supporting energy and infrastructure execution in Qatar.
⚙️ The Business Engine: What They Do & Where They Operate
The Core Divisions
Aarvi Encon Limited operates fundamentally through a single reportable business segment under Ind AS 108: Manpower Supply and Consultancy Services. Internal management and operational divisions structure services into core functional offerings:
| Business Function / Revenue Stream | FY 2025-26 Revenue (₹ in Crores) | FY 2024-25 Revenue (₹ in Crores) | Operational Scope & Focus Areas | Latest YoY (%) |
|---|---|---|---|---|
| Supply of Manpower & Consultancy Fees | 643.95 | 504.08 | Deputation of technical personnel, engineers, project managers, and O&M staff across core process and infrastructure projects. | +27.75% |
| Other Operating Revenue (Reimbursements) | 5.91 | 6.31 | Contractual site-specific cost recoveries, mobilization expenses, and ancillary client billings. | -6.34% |
| Total Consolidated Revenue from Operations | 64,985.18 | 51,038.90 | Combined top-line revenue generated across domestic and international operations. | +27.32% |
The Company has outlined a medium-term strategic portfolio model to achieve a revenue mix of 60% India Staffing Services, 20% India Operation & Maintenance (O&M) Services, and 20% International Business to improve margins and recurring revenue streams.
The Product & Service Catalog
Aarvi Encon offers integrated engineering, workforce, and technical support services across the industrial lifecycle:
- Technical Manpower Outsourcing & Deputation: Deputation of discipline-specific qualified engineers (Civil, Mechanical, Electrical, Instrumentation, Piping, Chemical, Safety/HSE) to client sites for short-term and long-term project execution.
- Operations & Maintenance (O&M) Services: Comprehensive plant asset operation, routine maintenance, turnaround management, and specialized technical staffing for refineries, solar module/cell plants, thermal power units, and pipelines.
- Pre-Commissioning & Commissioning Services: Specialized testing, pre-commissioning checks, initial plant start-up assistance, and operational stabilization for complex process facilities.
- Project Management & Engineering Support: Detailed engineering, CAD drafting, 3D plant modeling, procurement assistance, expediting, construction supervision, and shutdown management.
- Inspection & Quality Assurance Services: Third-party vendor inspection, factory acceptance testing, statutory compliance auditing, and quality surveillance across supply chains.
- Permanent Recruitment Solutions: Executive search and mid-to-senior technical placement services for industrial enterprises.
The Names You Know
Aarvi Encon maintains direct client relationships with major public sector undertakings, multinational corporations, and engineering contractors:
- Refinery & Petrochemicals: Reliance Industries Limited, Hindustan Petroleum Corporation Limited (HPCL), Chennai Petroleum Corporation Limited (CPCL), HPCL-Mittal Energy Limited (HMEL/HMPL).
- Engineering, Procurement & Construction (EPC): Larsen & Toubro Limited (L&T), major domestic and international private EPC conglomerates.
- Clean Energy & Manufacturing: Solar cell and module manufacturers, wind farm developers, power transmission entities, and process chemical plants.
- Infrastructure & Transport: Indian Railways, Metro Rail Corporations, Ports & Terminals, and City Gas Distribution (CGD) network providers.
Mapping the Domestic & Global Reach
Aarvi Encon’s geographic footprint spans major industrial clusters in India, alongside expanding hubs in the Middle East and Southeast Asia:
| Geographic Region | FY 2025-26 Revenue (₹ in Crores) | FY 2024-25 Revenue (₹ in Crores) | Share of FY 2025-26 Revenue (%) | Latest YoY (%) |
|---|---|---|---|---|
| Domestic (India) | 567.84 | 464.16 | 87.38% | +22.34% |
| International (Outside India) | 82.02 | 46.23 | 12.62% | +77.42% |
| Total Operating Revenue | 649.85 | 510.39 | 100.00% | +27.32% |
The international business delivered significant growth in FY 2025-26, with revenue expanding by 77.40% (reported at 73% growth in managerial terms) and International Profit After Tax increasing by 179% year-on-year. This expansion was driven by new contract wins in the UAE and Indonesia, office expansion in Malaysia, and operational stabilization in Qatar, Oman, and Saudi Arabia.
The Brick & Mortar Footprint
Aarvi Encon operates a distributed office network designed to support project mobilization and client engagement:
- Corporate Headquarters: Marathon NextGen Complex, Lower Parel, Mumbai, Maharashtra.
- New Engineering Center (Chennai): Established in Chennai to scale design and project execution support, targeted to house ~500 engineering professionals over 3-4 years.
- Regional & Branch Network (India): Offices located near major industrial hubs, project sites, and state capitals.
- Overseas Subsidiaries & Hubs: Regional offices in Dubai and Abu Dhabi (UAE), Muscat (Oman), Doha (Qatar), Al Khobar (Saudi Arabia), Jakarta (Indonesia), and Kuala Lumpur (Malaysia).
📊 The Financial Health: The Numbers Simplified
Multi-Year Financial Highlights (₹ in Crores)
| Metric | FY 2025-26 | FY 2024-25 | FY 2023-24 | Latest YoY (%) |
|---|---|---|---|---|
| Revenue from Operations | 649.85 | 510.39 | 437.37 | +27.32% |
| EBITDA (Operating Profit) | 24.93 | 15.86 | 16.89 | +57.19% |
| Profit Before Tax (PBT) | 19.93 | 11.22 | 12.57 | +77.63% |
| Profit After Tax (PAT) | 17.62 | 10.04 | 10.95 | +75.50% |
| Net Worth / Total Equity | 142.07 | 125.32 | 116.70 | +13.37% |
| Basic Earnings Per Share (₹) | 11.90 | 6.79 | 7.41 | +75.26% |
Earnings, Expenses, & Take-Home Profits
The Consolidated Statement of Profit and Loss demonstrates operational leverage, with net profits growing by 75.42% compared to revenue growth of 27.33%:
| Line Item (Ind AS Schedule III) | FY 2025-26 (₹ in Crores) | FY 2024-25 (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| I. Revenue from Operations | 649.85 | 510.39 | +27.32% |
| II. Other Income | 2.25 | 2.48 | -9.27% |
| III. Total Revenue (I + II) | 652.10 | 512.86 | +27.15% |
| IV. Expenses | |||
| Employee Benefit Expenses | 488.80 | 376.87 | +29.70% |
| Finance Costs | 2.89 | 3.08 | -6.17% |
| Depreciation and Amortisation Expense | 1.77 | 1.57 | +12.74% |
| Other Expenses | 138.36 | 120.12 | +15.18% |
| Total Expenses (IV) | 631.83 | 501.65 | +25.95% |
| V. Profit before Exceptional Items & Tax (III – IV) | 20.27 | 11.22 | +80.66% |
| VI. Exceptional Items (Net) | 0.34 | 0.00 | N/M |
| VII. Profit Before Tax (V – VI) | 19.93 | 11.22 | +77.63% |
| VIII. Tax Expenses | |||
| Current Tax | 2.32 | 1.17 | +98.29% |
| Deferred Tax (Credit) / Charge | (0.01) | 0.00 | N/M |
| Total Tax Expenses | 2.31 | 1.17 | +97.44% |
| IX. Profit After Tax for the Year (VII – VIII) | 17.62 | 10.04 | +75.50% |
| X. Other Comprehensive Income (Net of Tax) | 1.51 | 0.46 | +228.26% |
| XI. Total Comprehensive Income for the Year | 19.13 | 10.50 | +82.19% |
| Basic EPS (in ₹) | 11.90 | 6.79 | +75.26% |
| Diluted EPS (in ₹) | 11.79 | 6.73 | +75.19% |
Operating profitability (EBITDA) expanded by 57.18% to ₹ 24.93 Crore, driven by higher execution volumes and cost management controls across project sites. Exceptional items of ₹0.34 Crores comprised a ₹1.48 Crores provision for the New Labour Codes, offset by a ₹1.14 Crores write-back of old gratuity retention reserves.
Assets, Borrowings, & Net Worth
Aarvi Encon’s Consolidated Balance Sheet highlights an expanded asset base, working capital efficiency, and debt management:
| Balance Sheet Line Item (Ind AS) | As at March 31, 2026 (₹ in Crores) | As at March 31, 2025 (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| ASSETS | |||
| (1) Non-Current Assets | |||
| Property, Plant and Equipment | 16.40 | 17.17 | -4.48% |
| Goodwill on Consolidation | 0.25 | 0.25 | 0.00% |
| Other Intangible Assets | 0.21 | 0.28 | -25.00% |
| Intangible Assets Under Development | 0.15 | 0.00 | N/M |
| Non-Current Financial Assets: Loans & Advances | 2.61 | 2.74 | -4.74% |
| Non-Current Financial Assets: Others | 22.71 | 20.27 | +12.04% |
| Deferred Tax Assets (Net) | 0.06 | 0.13 | -53.85% |
| Other Non-Current Assets | 19.54 | 9.58 | +103.97% |
| Total Non-Current Assets | 61.93 | 50.41 | +22.85% |
| (2) Current Assets | |||
| Current Investments (Mutual Funds) | 4.94 | 5.52 | -10.51% |
| Trade Receivables | 102.37 | 115.46 | -11.34% |
| Cash and Cash Equivalents | 9.17 | 6.70 | +36.87% |
| Other Bank Balances | 3.15 | 2.77 | +13.72% |
| Current Financial Assets: Loans & Advances | 4.19 | 2.07 | +102.42% |
| Current Financial Assets: Others | 47.24 | 25.89 | +82.46% |
| Other Current Assets | 3.96 | 4.20 | -5.71% |
| Total Current Assets | 175.01 | 162.62 | +7.62% |
| TOTAL ASSETS | 236.95 | 213.03 | +11.23% |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Equity Share Capital | 14.81 | 14.81 | 0.00% |
| Other Equity | 127.26 | 110.51 | +15.16% |
| Total Equity (Net Worth) | 142.07 | 125.32 | +13.37% |
| Non-Current Liabilities | |||
| Non-Current Borrowings | 2.35 | 3.33 | -29.43% |
| Other Non-Current Financial Liabilities | 6.62 | 3.89 | +70.18% |
| Deferred Tax Liabilities (Net) | 0.21 | 0.29 | -27.59% |
| Other Non-Current Liabilities | 0.12 | 0.12 | 0.00% |
| Total Non-Current Liabilities | 9.30 | 7.63 | +21.89% |
| Current Liabilities | |||
| Current Borrowings | 24.35 | 23.45 | +3.84% |
| Trade Payables: MSME Dues | 2.32 | 1.37 | +69.34% |
| Trade Payables: Other Creditors | 5.61 | 11.31 | -50.40% |
| Other Current Financial Liabilities | 36.14 | 29.22 | +23.68% |
| Other Current Liabilities | 14.41 | 13.99 | +3.00% |
| Current Provisions | 2.76 | 0.74 | +272.97% |
| Total Current Liabilities | 85.58 | 80.08 | +6.87% |
| TOTAL EQUITY AND LIABILITIES | 236.95 | 213.03 | +11.23% |
The balance sheet strengthened as Total Equity increased to ₹142.07 Crores (₹ 142.07 Crore), up from ₹125.32 Crores in the previous year. Trade receivables collection efficiency improved, reducing debtor collection turnover from 82.57 days in FY 2024-25 to 57.50 days in FY 2025-26.
Cash Flow: Tracking the Money Movement
Operating cash flows turned positive during the year, supported by receivables management and working capital controls:
| Cash Flow Summary | FY 2025-26 (₹ in Crores) | FY 2024-25 (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| Operating Cash Flows Before Working Capital Changes | 25.28 | 15.54 | +62.68% |
| Net Working Capital Adjustments | (4.95) | (16.07) | -69.20% |
| Direct Taxes Paid (Net) | (12.28) | (1.87) | +556.68% |
| Net Cash Generated from / (Used in) Operating Activities | 8.05 | (2.40) | N/M |
| Purchase of Property, Plant & Equipment (CapEx / CWIP) | (0.97) | (9.90) | -90.20% |
| Proceeds from Sale of Fixed Assets | 11.78 | 24.23 | -51.38% |
| Purchase of Intangible Assets | (0.22) | 0.09 | N/M |
| Investment / Realization of Mutual Funds (Net) | 0.58 | (5.13) | N/M |
| Interest Received | 0.85 | 2.04 | -58.33% |
| Net Cash Generated from / (Used in) Investing Activities | 0.36 | (12.64) | N/M |
| Net Proceeds / (Repayment) of Short-Term Borrowings | 89.52 | 1,370.06 | -93.47% |
| Repayment of Long-Term Borrowings | (0.98) | 3.33 | N/M |
| Dividends Paid | (2.96) | (2.96) | 0.00% |
| Interest Paid | (2.89) | (3.08) | -6.17% |
| Proceeds from Issue of Equity Shares (ESOP) | 0.00 | 6.67 | -100.00% |
| Net Cash Generated from / (Used in) Financing Activities | (5.94) | 11.07 | N/M |
| Net Increase / (Decrease) in Cash & Cash Equivalents | 2.46 | (3.98) | N/M |
| Cash & Cash Equivalents at Beginning of Year | 6.70 | 10.68 | -37.27% |
| Cash & Cash Equivalents at End of Year | 9.17 | 6.70 | +36.87% |
Funding the Future: CapEx, CWIP & R&D Spending
CapEx spend in FY 2025-26 normalized to ₹0.97 Crores for Property, Plant, and Equipment (compared to ₹9.90 Crores in FY 2024-25 when office premises and equipment additions occurred). The Company also allocated ₹0.15 Crores toward Intangible Assets Under Development to digitize internal billing and payroll processing workflows. The Company operates in the service and technical deputation sector, and did not incur specific capital expenditure on standalone R&D or energy conservation equipment during the fiscal year.
🗺️ The Corporate Family Tree: Structure & Investments
Subsidiaries, Associates, & Joint Ventures (Form AOC-1)
The operational and financial standings of Aarvi Encon Limited’s global corporate holdings for the year ended March 31, 2026, are detailed below:
| Entity Name | Relationship Type | Country of Inc. | Effective Ownership (%) | Total Assets (₹ in Crores) | Total Turnover (₹ in Crores) | Profit / (Loss) After Tax (₹ in Crores) |
|---|---|---|---|---|---|---|
| Aarvi Encon FZE | Direct Subsidiary | UAE | 100.00% | 34.77 | 73.16 | 7.74 |
| Aarvi Engineering & Consultants Pvt. Ltd. | Direct Subsidiary | India | 100.00% | 0.62 | 0.07 | 0.00 |
| Aarvi Encon Resources Limited | Direct Subsidiary | UK | 100.00% | 0.14 | 0.00 | (0.15) |
| Aarvi Energy Company | Direct Subsidiary | Saudi Arabia | 100.00% | 0.06 | 0.00 | (0.75) |
| Aarvi Encon LLC, Oman | Step-Down Subsidiary | Oman | 100.00% (via FZE) | Included in FZE | Included in FZE | Included in FZE |
| MNR Technical Services LLC | Step-Down Subsidiary | UAE | 100.00% (via FZE) | Included in FZE | Included in FZE | Included in FZE |
| Aarvi Energy Services SDN. BHD. | Step-Down Subsidiary | Malaysia | 100.00% (via FZE) | – | – | – |
| PT Aarvi Encon Services | Associate Entity | Indonesia | 49.00% (via FZE) | Significant Control | Operational | Operational |
| Aarvi Encon Staffing Services W.L.L. | Joint Venture | Qatar | 49.00% (Direct) | (2.89) | Operational | (10.04) |
Strategic Investments & Treasury Holdings
The Company maintains liquid treasury investments managed across conservative mutual fund schemes. As of March 31, 2026, the market value of quoted current mutual fund investments stood at ₹4.94 Crores (compared to ₹5.52 Crores in FY 2024-25), distributed across liquid, arbitrage, and debt funds managed by ICICI Prudential, Kotak, HDFC, and Axis Mutual Funds.
👥 Power & Control: Who Pulls the Strings?
The Brain Trust: Board of Directors & Key Managerial Personnel (KMP)
The Board of Directors of Aarvi Encon Limited comprises six members, including two Executive Promoter Directors and four Non-Executive Independent Directors:
| Name of Director / KMP | Designation / Role | DIN | Category |
|---|---|---|---|
| Mr. Virendra D. Sanghavi | Managing Director & Founder | 00759176 | Executive, Promoter Director |
| Mr. Jaydev V. Sanghavi | Executive Director & CFO | 00759042 | Executive, Promoter Director |
| Mr. Devendra J. Shrimanker | Independent Director | 00385083 | Non-Executive Independent (Audit & NRC Chairman) |
| Mrs. Sonal N. Doshi | Independent Director | 06672497 | Non-Executive Independent (SRC Chairperson) |
| Mr. Ramachandran Ramamoorthy | Independent Director | 07049995 | Non-Executive Independent Director |
| Mr. Jagat Suresh Parikh | Independent Director | 06757116 | Non-Executive Independent (Appointed Feb 2, 2026) |
| Dr. (Mrs.) Padma V. Devarajan | Independent Director | 08064987 | Non-Executive Independent (Retired Jan 31, 2026) |
| Ms. Leela S. Bisht | Company Secretary & Compliance Officer | ACS 59748 | Key Managerial Personnel (KMP) |
The senior management team includes Mr. Tushar Shah (Senior VP – Sales & Marketing), Mr. Manoj Ramakrishnan (Senior VP – Sales & Marketing), Mr. Mathew Eappen (Senior VP – Accounts & Finance), Mr. Manvendra Singh (Associate VP – HR & Operations), Mr. Mahesh Repal (Associate VP – Sales & Marketing), Mr. Reyaz Khan (General Manager – Sales & Marketing), and Mr. Santosh Narayan Kasturi (AGM – Human Resources).
Who Owns the Stock? Shareholding Pattern
The shareholding structure of Aarvi Encon Limited as of March 31, 2026, comprising 1,48,10,700 equity shares of face value ₹ 10/- each, is tabulated below:
| Shareholder Category | Number of Equity Shares Held | Percentage of Total Share Capital (%) |
|---|---|---|
| Promoter & Promoter Group | 1,08,89,692 | 73.53% |
| – Mr. Virendra Dalpatram Sanghavi | 75,95,000 | 51.28% |
| – Mr. Jaydev Virendra Sanghavi | 21,82,500 | 14.74% |
| – Ms. Naini Kulkarni | 6,51,000 | 4.40% |
| – Ms. Ami Sanghavi | 2,71,250 | 1.83% |
| – Mr. Aditya Sanghavi | 1,62,750 | 1.10% |
| – Ms. Nirali Sanghavi | 27,192 | 0.18% |
| Public / Non-Promoter Shareholding | 39,21,008 | 26.47% |
| – Individual Shareholders (Nominal Share Capital up to ₹ 2 Lakhs) | 20,99,549 | 14.18% |
| – Individual Shareholders (Nominal Share Capital above ₹ 2 Lakhs) | 8,09,585 | 5.47% |
| – Hindu Undivided Family (HUF) | 6,71,010 | 4.53% |
| – Non-Resident Indians (NRIs) | 2,15,672 | 1.46% |
| – Bodies Corporate | 1,20,207 | 0.81% |
| – Clearing Members | 4,734 | 0.03% |
| – Foreign Portfolio Investors (FPIs) / FIIs | 251 | 0.00% |
| TOTAL SHARES OUTSTANDING | 1,48,10,700 | 100.00% |
Subsequent to the close of the financial year, the Nomination and Remuneration Committee allotted 31,900 equity shares on April 18, 2026, and 1,500 equity shares on May 30, 2026, under the ESOP 2022 scheme. As a result, the paid-up share capital increased to ₹ 14,84,41,000 comprising 1,48,44,100 equity shares.
🎯 The Strategic Outlook: Future Plans & Potential Pitfalls
Competitive Advantages & Economic Moats
Aarvi Encon Limited has established several strategic advantages in technical manpower deputation and engineering services:
- Domain Expertise Across Lifecycle: Nearly 40 years of domain expertise spanning Oil & Gas, Petrochemicals, Power, Green Energy, Infrastructure, and Metro Railways, allowing deputation of specialized personnel for complex process facilities.
- Scalable Technical Talent Pool: A deployed technical workforce of over 8,000 professionals backed by digital recruitment workflows, enabling rapid deployment across complex project sites.
- Multi-Country Operational License Architecture: Direct corporate presence, subsidiaries, and partnerships across India, UAE, Oman, Qatar, Saudi Arabia, Indonesia, and Malaysia, allowing cross-border sourcing and compliant deployment.
- Long-Term Blue-Chip Client Embeddedness: Decades-long relationships with PSUs (HPCL, CPCL) and EPC majors (Reliance, L&T) create barriers to entry for unorganized regional competitors.
- Diversified Service Delivery Model: Integration of technical staffing, Operations & Maintenance (O&M), inspection, commissioning, and engineering consultancy creates revenue stability across economic cycles.
What Could Go Wrong? Key Challenges & Business Risks
The Company operates in an environment influenced by macroeconomic cycles and project execution trends:
- Cyclicality in Core Sector Industrial CapEx: Revenues depend on capital expenditure and project spending in oil refineries, petrochemical plants, infrastructure, and green energy. Delays or slowdowns in client CapEx directly affect contract awards.
- Shortage of Specialized Engineering Talent: Competition for skilled engineers across green energy, industrial automation, and digital engineering can raise recruitment costs and extend hiring timelines.
- Regulatory & Statutory Compliance Complexities: Operating across multiple international jurisdictions exposes the enterprise to changing labor laws, visa regulations, statutory wage structure modifications (such as the India New Labour Codes), and tax regimes.
- Project Execution Timelines & Client Concentration: Delays in client site mobilization or budget cutbacks affect workforce utilization. The top customer accounted for 13% of total revenue in FY 2025-26 (down from 17% in FY 2024-25).
- Foreign Exchange Volatility: International operations in the Middle East and Southeast Asia expose overseas earnings to currency fluctuations upon consolidation into INR.
The Next Chapter: Growth & CapEx Initiatives
Aarvi Encon’s corporate strategy centers on scaling higher-margin technical offerings while diversifying revenue streams geographically and functionally:
- Target Revenue Mix Realization: Executing a target business split of 60% India Staffing Services, 20% India Operation & Maintenance (O&M) Services, and 20% International Business to improve margins and earnings quality.
- Scale Chennai Engineering Center: Developing the newly established Chennai engineering office into a dedicated engineering center housing approximately 500 engineering professionals over 3 to 4 years.
- Expansion in Renewable Energy O&M: Expanding technical staffing and O&M deployments across solar cell, solar module manufacturing, and wind energy projects for private and institutional developers.
- International Middle East & Southeast Asia Expansion: Scaling operations under the newly incorporated Malaysian subsidiary (Aarvi Energy Services SDN. BHD.) and growing project execution in Saudi Arabia (Aarvi Energy Company LLC) and Indonesia.
- Digitalization & HR Technology Infrastructure: Investing in integrated applicant tracking systems, cloud payroll, and compliance automation platforms to streamline onboarding timelines and cross-border deployments.
The Verdict: Strategic Outlook & Conclusion
Aarvi Encon Limited ended FY 2025-26 with a 27.33% increase in consolidated revenue to ₹ 649.85 Crore and a 75.42% surge in Profit After Tax to ₹ 17.62 Crore. Supported by a strengthened net worth of ₹ 142.07 Crore, improved receivables collection (57.50 days), reduced debt-to-equity (0.19x), and an expanding international presence across seven countries, the Company is positioned to capitalize on infrastructure investments, energy transition initiatives, and industrial expansion across India and emerging international markets.
Note: Financial ratios, margins, YoY growth percentages, and % revenue shares are calculated by IndianCompanies.in based on disclosed Ind AS financial statements.
Official Site: www.aarviencon.com