Aarvi Encon Investor Presentation: Expansion Strategy, International Growth and New Business Verticals

Aarvi Encon Limited has outlined its growth strategy in its September 2026 investor presentation, with a focus on expanding its technical manpower outsourcing business, increasing international operations, entering new industry verticals, strengthening its O&M business, and using digitalisation and AI to improve operational efficiency.

The company said it has more than 8,000 engineers and technical personnel deployed at client locations and has deployed more than 50,000 personnel since inception.

No Major Capex Plan Disclosed

Aarvi Encon operates an asset-light business model, and the September 2026 investor presentation does not disclose a specific large-scale capex programme or a quantified future capital expenditure target.

Instead, the company’s expansion strategy is centred on:

• Increasing manpower deployment
• Expanding into new industries
• Growing international operations
• Increasing business from existing clients
• Adding new customers
• Expanding O&M services
• Diversifying engineering services
• Digitalising operational processes
• Using AI to improve efficiency

This asset-light approach means growth is expected to be driven primarily by manpower, client additions, geographic expansion and service diversification rather than large investments in physical assets.

Focus on Increasing Business from Existing Clients

One of Aarvi’s key growth priorities is to increase its wallet share from existing customers.

The company plans to achieve this through additional manpower deployment as well as cross-selling and up-selling of its service offerings.

Aarvi also intends to provide manpower services to new clients within its existing industry verticals.

The company has a diversified clientele across sectors such as oil & gas, engineering, power, renewables, and other industrial businesses.

International Expansion

International expansion remains an important part of Aarvi’s growth strategy.

The company plans to establish a dedicated international sales team focused on technical manpower deputation and strengthening its overseas presence.

Aarvi already has operations and geographical exposure across markets including:

• Saudi Arabia
• UAE
• Qatar
• Oman
• Indonesia
• Malaysia
• Tanzania
• Mozambique
• Algeria
• Angola
• Nigeria
• Kenya
• UK

International business contributed approximately 11% of Q1 FY27 geographical sales, while India accounted for approximately 89%.

The company has identified international manpower deployment as an area where it can further expand its customer base.

Entry into New Industry Verticals

Aarvi plans to diversify beyond its traditional sectors by entering additional industry verticals.

The company has identified opportunities in:

• Automobile
• Marine
• Airports
• Ports
• Defence
• Healthcare

This strategy is intended to broaden the company’s addressable market and reduce dependence on its existing sector mix.

O&M Business Offers Higher-Margin Opportunity

Aarvi is also looking to expand its Operations & Maintenance (O&M) business.

According to the presentation, O&M generates a higher margin compared with the company’s manpower outsourcing activity.

The company’s O&M operations cover areas such as:

• Oil & gas
• Pipelines
• Tank terminals
• Solar energy
• Industrial operations

Its O&M clients include companies such as HPCL, GSPC, Cairn, GSFC, BPCL and GSPL.

O&M revenue increased from ₹60.7 crore in FY24 to ₹91 crore in FY26, based on the figures presented by the company.

Digitalisation and AI

Digitalisation is another component of Aarvi’s future growth strategy.

The company plans to digitalise various processes to enable more efficient and contactless operations management.

It also plans to use Artificial Intelligence to improve operational efficiency.

The presentation does not provide a quantified financial benefit or specific investment amount associated with the AI initiative, so the potential financial impact remains to be established through future execution.

Manpower Base Continues to Expand

Aarvi’s total manpower deputation increased over the period shown in the presentation.

The company reported:

• FY24: 5,458 personnel
• FY25: 6,667 personnel
• FY26: 8,272 personnel
• Q1 FY27: 8,288 personnel

The company has more than 800,000 resumes in its internal database, which it uses to support recruitment and deployment requirements.

Revenue Growth and Financial Performance

Aarvi’s operational revenue increased from ₹406.1 crore in FY24 to ₹649.9 crore in FY26, representing a three-year revenue CAGR of approximately 14%, according to the presentation.

For Q1 FY27, operational revenue stood at ₹172.7 crore.

EBITDA increased from ₹12.6 crore in FY24 to ₹22.7 crore in FY26, while FY26 EBITDA margin stood at 3.49%.

For Q1 FY27, EBITDA was ₹4.5 crore, with an EBITDA margin of 2.61%.

Profit after tax increased from ₹11.3 crore in FY24 to ₹17.6 crore in FY26. Q1 FY27 PAT stood at ₹6 crore, with a PAT margin of 3.47%.

Diversification Across Engineering and Industrial Sectors

Aarvi’s Q1 FY27 business remains heavily focused on manpower outsourcing, which accounted for approximately 88% of the business mix, according to the presentation.

O&M accounted for approximately 11%, while other activities contributed around 1%.

The company serves sectors including:

• Oil & gas
• Engineering
• Renewable energy
• Construction
• Chemicals
• Petrochemicals
• Power
• LNG
• Pipelines
• Rail and metro
• Ports and terminals

Management’s Growth Priorities

The key growth priorities outlined by management include:

1. Increase wallet share from existing clients
2. Acquire new clients in existing sectors
3. Expand international manpower operations
4. Enter new verticals such as defence, airports, marine and healthcare
5. Increase O&M business
6. Diversify services across the engineering value chain
7. Improve talent acquisition and retention
8. Digitalise operational processes
9. Use AI to improve operational efficiency
10. Improve operational efficiency through deeper domain expertise

Key Investor Points

Aarvi Encon’s September 2026 presentation highlights a growth strategy based more on business expansion than heavy capital expenditure.

The most important points for investors to track are the company’s ability to increase manpower deployment, expand international revenue, win new clients, scale its relatively higher-margin O&M business, and successfully enter new industry verticals.

The asset-light model and low gearing remain important features of the business. The presentation reports a net debt-to-equity ratio of 0.10x in FY26.

At the same time, investors should monitor margins because the company’s EBITDA margin was 3.49% in FY26 and 2.61% in Q1 FY27. Expansion in higher-margin O&M and greater operating efficiency could therefore be important to the company’s future profitability.

Key Takeaway

Aarvi Encon has not announced a large quantified capex programme in this presentation. Its expansion plans are primarily focused on manpower growth, international expansion, new industries, O&M, cross-selling, digitalisation and AI-led operational improvements.

Future performance will depend on how effectively the company converts these initiatives into higher revenue, improved margins and a larger share of international and higher-value service revenues.

Source: Aarvi Encon Limited Investor Presentation, September 2026.

Disclaimer: This article is based on information and forward-looking statements presented by the company. Actual results may differ due to business, economic, regulatory, competitive, and other risks. This article is for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security.