Aurionpro Sol. Q1 FY27 Results (NSE: AURIONPRO)
Signal: Margin pressure
The read
Revenue growth decelerated sharply to +6.3% YoY, the lowest in the 12-quarter series, while OPM contracted for the 5th consecutive quarter to 19.2%, driven by employee cost growth (+18.4% YoY) that outpaced revenue by a wide margin. PAT fell 12.3% YoY, cushioned by a doubling of other income and a deferred tax credit. Standalone revenue declined 7.2% YoY, highlighting weakness at the parent level, with group results partly supported by subsidiaries (8 of 41 subsidiaries not reviewed but represent 42% of revenue). The Fintra performance-linked consideration lapse (₹3 Cr saved) and TProcess acquisition (USD 1.075M) are small-scale events.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹358.07 Cr | +6.31% | +3.62% |
| EBIT | ₹68.6 Cr | -4.99% | |
| Net profit | ₹45.03 Cr | -12.3% | |
| EPS | ₹8.52 | -10.8% | |
| EBIT margin | 19.17% |
P&L walk
Revenue grew modestly (+6.3% YoY), decelerating from prior quarters (+21% to +32% over the last year), while OPM contracted for the 5th consecutive quarter to 19.2%, driven by elevated employee costs (45.9% of revenue, +460bps YoY) and steady depreciation; net profit fell 12.3% YoY as other income nearly doubled but could not offset margin pressure and lower operating profit.
Segments
Software Services segment (76% of revenue) grew 8.0% YoY and held segment margins, while Equipment & Product License segment revenue was flat (+1.3% YoY) but its segment profit more than doubled (+118%) — indicating favorable mix or margin improvement; however, assets are not allocated to segments, limiting insight.
Key positives
- Gross margin expanded ~140bps YoY to 70.1%, aided by mix shift toward higher-margin software services and lower equipment material costs.
- Software Services segment revenue grew 8.0% YoY, maintaining stable margins, and forms 76% of total revenue.
- Other income nearly doubled YoY to ₹667.56 lakh, providing a buffer against operating margin compression.
- Acquisition of TProcess Inc. (Canada) for USD 1.075 million completed — small but expands geographic presence.
Key concerns
- Revenue growth decelerated to +6.3% YoY — the weakest in six quarters, down from +28.6% in Q1FY26 and +32%+ in prior four quarters.
- OPM contracted for the 5th consecutive quarter to 19.2% (-112bps YoY), with employee costs growing 18.4% YoY — nearly 3x revenue growth — reaching 45.9% of revenue.
- Net profit fell 12.3% YoY despite a large deferred tax credit (₹357.78 lakh credit) and higher other income; core operating profitability declined.
- Finance costs surged 161% YoY to ₹444.47 lakh, reflecting increased debt burden from acquisitions/operations.
- Standalone revenue declined 7.2% YoY — the parent entity is shrinking while the group depends on subsidiaries for growth.
- EPS fell 10.8% YoY to ₹8.52, and diluted EPS (₹8.30) shows modest dilution from ESOP trust.
Research and educational content only. Not investment advice.