Revenue fell 15.30% QoQ, but operating margin rose 1.63 points
Lower expenses helped margins, but higher interest and depreciation pulled net profit down 7.48% sequentially.
Filed 05 Aug 2026, 18:33 IST · after market close · ARIS (ARIS)
Key takeaways
- Consolidated revenue fell 15.30% QoQ, but operating margin improved 1.63 percentage points to 10.50%.
- Net profit declined 7.48% QoQ as interest rose 3.75% and depreciation increased 14.46%, despite broadly stable operating profit.
- Other income contributed 16.42% of pre-tax profit, making reported earnings partly dependent on non-operating income.
Lower revenue, stable operating profit
ARIS reported consolidated revenue of Rs 290.81 cr in Q1FY27, down 15.30% QoQ, while operating profit was broadly unchanged, rising 0.26%. The results were filed after market close, so the stock reaction is not yet part of this readout.
Faster cost reduction lifted the operating margin
Expenses fell 16.82% QoQ, faster than revenue, which widened operating margin by 1.63 percentage points. The improvement at the operating level did not flow through to net profit because interest rose 3.75% and depreciation increased 14.46%. The tax rate also rose 0.21 percentage points to 24.88%.
Other income was material to pre-tax profit
Other income fell 27.72% QoQ to Rs 4.38 cr, but still represented 16.42% of pre-tax profit. That contribution means the quarter's Rs 20.03 cr net profit was not driven by operating income alone. The available comparison is sequential; there is no year-on-year benchmark in this quarter's release.
Asphalt and contract manufacturing featured in management commentary
Management said asphalt revenue rose to INR 529 million in Q1FY27 from INR 299 million in Q4FY26. The company also said contract manufacturing accounted for 53% of overall business in the quarter. Management said ArisUnitern secured an INR 6,500 million DaaS contract from Wadhwa Group in Mumbai.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹291 cr | ₹343 cr | -15.30% |
| Other income | ₹4 cr | ₹6 cr | -27.72% |
| Expenses | ₹260 cr | ₹313 cr | -16.82% |
| Operating profit | ₹31 cr | ₹30 cr | +0.26% |
| Operating margin (%) | 10.50% | 8.87% | — |
| Interest | ₹6 cr | ₹6 cr | +3.75% |
| Depreciation | ₹2 cr | ₹2 cr | +14.46% |
| Profit before tax | ₹27 cr | ₹29 cr | -7.20% |
| Tax | ₹7 cr | ₹7 cr | -6.35% |
| Net profit | ₹20 cr | ₹22 cr | -7.48% |
| EPS (₹) | ₹2.05 | ₹2.59 | -20.85% |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Asphalt revenue increased to INR 529 million in Q1-FY27 from INR 299 million in Q4-FY26.
- The contract manufacturing segment contributed 53% of the overall business in Q1-FY27.
New orders
- ArisUnitern secured a INR 6,500 million DaaS contract from Wadhwa Group in Mumbai.
What to watch
- Whether operating margin holds above 10.50% after the Q1FY27 improvement.
- Whether interest and depreciation remain above the Q1FY27 levels of Rs 6.36 cr and Rs 1.90 cr.
- Progress on the INR 6,500 million DaaS contract disclosed by management.