Arisinfra Solu. Q2 FY27 Results (NSE: ARIS)
Signal: Margin expansion
The read
The trajectory is a seventh consecutive quarter of reported margin expansion, with Q2 EBITDA margin reaching 11.6% from 9.3% a year ago as contract manufacturing and DaaS rose to 66% of revenue; the key quality check is whether the 50% reported PAT growth converts into shareholder EPS growth, which was only 26%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹307.7 Cr | 28% | 6% |
| Net profit | ₹22.8 Cr | 50% | |
| EPS | ₹2.51 | 26% | |
| EBIT margin | 11.6% |
P&L walk
Revenue grew 28% YoY and 6% QoQ to ₹307.7 Cr, while EBITDA grew 58% YoY to ₹35.6 Cr and margin expanded 220bps to 11.6%; the acceleration came from contract manufacturing and DaaS reaching 66% of revenue, lifting PAT 50% to ₹22.8 Cr.
Segments
Although ARIS reports a single Ind AS segment, the mix shift is concentrated in contract manufacturing and DaaS: together they contributed 66% of Q2 revenue and about 90% of H1 segment EBITDA, versus materials supply's 35.8% of H1 revenue but only 9.6% of segment EBITDA.
Key positives
- Revenue reached ₹307.7 Cr in Q2, up 28% YoY and 6% QoQ, while contract manufacturing and DaaS increased to 66% of revenue from 53% a year ago.
- EBITDA grew 58% YoY to ₹35.6 Cr versus 28% revenue growth, and EBITDA margin expanded 220bps to a record 11.6% on the disclosed mix shift.
- Contract manufacturing revenue grew 72% in H1 to ₹329.2 Cr at a 10.5% EBITDA margin, while reserved partner capacity increased to 11.7 million tonnes from 9.1 million tonnes in one quarter without plant capex.
- H1 operating cash flow of ₹60.1 Cr was 1.4x H1 PAT of ₹42.9 Cr, and net working-capital days declined to 54 from 97 in Q1 FY26.
- DaaS delivered a 60% H1 EBITDA margin and its live order book reached ₹2,817 Cr GDV across 15 projects, up from 10 projects at June 30, 2026.
Key concerns
- Diluted EPS rose only 26% to ₹2.51 while reported PAT increased 50% to ₹22.8 Cr and shareholder-attributable PAT increased 46% to ₹20.8 Cr; the filing does not explain the gap, warranting monitoring of share count and minority interests.
- Materials supply generated 35.8% of H1 revenue but only 9.6% of segment EBITDA, leaving consolidated margins increasingly dependent on sustaining contract manufacturing and DaaS mix gains.
- DaaS GDV of ₹2,817 Cr is expected project sale value rather than ARIS revenue, so conversion into fees and material supply revenue remains execution-dependent.
Research and educational content only. Not investment advice.