Company Overview

Aarvi Encon Limited, incorporated on December 3, 1987, and converted to a public limited company on July 5, 2017, is India's leading technical staffing company. It specializes in expert engineering staffing solutions and holds ISO 9001:2015 certification and a CRISIL SME-1 rating. The company operates as a technical manpower supply firm, offering permanent and temporary staffing services across various industries.

Founded by Mr. Virendra Dalpatram Sanghavi, Aarvi pioneered the concept of technical staffing in India. Starting with just three engineers, it has grown into the largest technical staffing company, with over 6,000 engineers on its payroll working at client locations. Aarvi creates value for clients in India and overseas by delivering world-class engineering and manpower outsourcing services, backed by an intimate understanding of the Indian economy and business environment.

Service Portfolio and Capabilities

Aarvi provides technical staffing solutions and qualified engineers in areas such as electrical-instrumentation, erection and commissioning, operation and maintenance, instrument calibration, plant shutdown, equipment services, and support for Original Equipment Manufacturers (OEMs) and airport maintenance. The company offers temporary staffing to a range of industries, including Engineering, Procurement, and Construction (EPC) firms, power plants, oil and gas refineries, chemicals and petrochemicals, construction, infrastructure projects, and renewable energy.

The comprehensive service offerings include procurement assistance and expediting, pre-commissioning and commissioning services, manpower outsourcing and deputation, operation and maintenance, project and engineering design, project management, CAD/drafting/3D modelling, shutdown services, construction supervision, engineering services, IT staffing, and inspection services. Aarvi serves diverse sectors such as cement, engineering, infrastructure, metro, petrochemical, railway, telecom, EPC, IT, mono rail, pipeline, refinery, CGD and CNG, fertilizer, metal and minerals, oil and gas, power, and renewable energy industries.

Aarvi maintains a large in-house database of over 8 lakh resumes and operates a referral-based program, enabling them to mobilize manpower for shutdown assignments ranging from 15 days to several months. The company also provides a range of engineering services on various international projects, particularly in the UAE and Saudi Arabia.

International Operations and Subsidiaries

In 2018, Aarvi partnered with Bon Accord Employment Services in the UAE, and Aarvi Encon FZE, a wholly-owned subsidiary in the UAE, became a material subsidiary in 2019-20. The company expanded further by establishing PT Aarvi Encon Services in Indonesia in 2021-22 as a joint venture of Aarvi Encon FZE, UAE. It also incorporated another joint venture, Aarvi Encon Staffing Services W.L.L, in Qatar. In 2023, the company acquired M N R Technical Staffing Company in Dubai.

The subsidiary structure includes Aarvi Encon FZE, Aarvi Engineering and Consultancy Private Limited, and Aarvi Encon Resources Limited. The company provides technical manpower supply services in India, Malaysia, Italy, and other international locations.

Market Performance and Valuation

As of May 8, 2025, Aarvi Encon has a market capitalization of ₹150.29 crores. The stock has a 52-week high of ₹168 and a 52-week low of ₹88. The company trades at a P/E ratio of 13.24 and a P/B ratio of 1.29, while the current dividend yield stands at 1.97%.

Aarvi Encon delivered a 1-year return of -27.16% compared to the Nifty 50's return of -0.62% as of the last trading session. The promoter holding stands at 73.5% as per the latest available data.

Financial Performance

Annual Results (FY 2025)

Annual revenue for Aarvi Encon increased by 22.81% to ₹467.12 crore in FY 2025 from ₹380.37 crore in FY 2024. However, annual net profit decreased by 25.24% to ₹7.73 crore in FY 2025 from ₹10.35 crore in FY 2024.

Quarterly Performance

- Q3 FY 2025 (December 2024): Net profit declined marginally by 0.42% to ₹2.37 crore compared to ₹2.38 crore in December 2023, while sales rose significantly by 31.80% to ₹131.64 crore from ₹99.88 crore.

- Q2 FY 2025 (September 2024): Net profit declined 19.16% to ₹2.11 crore compared to ₹2.61 crore in September 2023, while sales rose 18.29% to ₹121.00 crore from ₹102.29 crore.

- Q1 FY 2025 (June 2024): Net profit declined 21.39% to ₹2.61 crore compared to ₹3.32 crore in June 2023, while sales rose 12.35% to ₹113.33 crore from ₹100.87 crore.

As per the latest financial reports, Aarvi Encon has a Return on Equity (ROE) of 8.34% and a Return on Capital Employed (ROCE) of 10.86%, measuring profitability relative to shareholders' equity and capital utilization efficiency respectively.

Recent Developments

On July 14, 2025, Aarvi Encon received a significant manpower supply order worth ₹9.37 crore for the Green PVC Project, extending till March 2026. The company has scheduled its 37th Annual General Meeting for August 8, 2025, which will include discussions on financials, dividend declarations, director re-appointments, and remuneration approvals.

Growth Trajectory and Future Outlook

The company deployed over 6,000 engineers in 2022, demonstrating its significant operational scale. In September 2017, the company raised capital aggregating ₹21.24 crore through a public issue of 39,34,000 equity shares. Over the last 5 years, revenue has grown at a yearly rate of 14.53%, compared to the industry average of 6.19%, indicating the company's ability to outperform sector benchmarks.

With its established presence across multiple countries, comprehensive service portfolio, and strong client relationships spanning over three decades, Aarvi Encon continues to be a key player in India's technical staffing sector, serving critical infrastructure and industrial projects both domestically and internationally.