Summary
Aurionpro Solutions Limited - Q3 FY 2025-26 Earnings Call Summary Thursday, February 05, 2026, 4:00 PM IST
Event Participants
Executives 3 Ashish Rai (Group CEO & Vice Chairman), Ninad Kelkar (Company Secretary), Vipul Parmar (CFO)
Analysts 6 Anmol Garg, Dharmesh Kanth, Harshit Sachdeva, Kartik Iyer, Kuber Chauhan, Vinay Menon
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (9M FY26) | ₹1,066 crores | +26% YoY; Driven by equal growth in Banking/Fintech and TIG segments. |
| Revenue (Q3 FY26) | ₹371 crores | +21% YoY; Reflects strongest sales quarter in company history. |
| EBITDA (9M FY26) | ₹216 crores | +23% YoY; Healthy margins sustained at 20% plus. |
| EBITDA (Q3 FY26) | ₹75 crores | +18% YoY; Margin remains steady at 20% plus despite wage pressures. |
| PAT (9M FY26) | ₹150 crores | +9% YoY; PAT margins at 14%. |
| PAT (Q3 FY26) | ₹44 crores | Margins at 12%; Impacted by one-off cost from new labor code implementation. |
| R&D Spend | 9% to 10% of Revenue | Strategic investment focused on AI transition and Software 2.0. |
| Order Book | ~₹1,650 crores | Direct order book; Pipeline noted as 65-66% higher YoY. |
| Cash Balance | ₹250-300 crores | Reflects liquidity available for R&D and strategic acquisitions. |
Geographic & Segment Commentary
-
Banking and Fintech: Revenue grew 26% YoY in 9M FY26. Secured a landmark lending transformation mandate from a major Singapore-headquartered bank and established iCashpro as a market standard with PSU bank wins in India. Strategic focus is on “Software 2.0,” transitioning to agentic, AI-native software stacks for global financial institutions.
-
Technology Innovation Group (TIG): Segment grew 26% YoY to ₹471 crores in 9M FY26. Momentum driven by Smart Mobility wins including Mumbai Metro Line 5 (Platform Screen Doors) and Bhopal/Indore Metro AFC systems. Expanded single-window data center solutions through a strategic project with IDBI Bank.
Company-Specific & Strategic Commentary
- AI & Lexsi Labs: Launched Orion-MSP, a top-tier foundation model for tabular data, and AurionAi, a domain-led platform for regulated BFS entities. Management is fundamentally reimagining the software supply chain by embedding AI-led intelligence across every layer of the development lifecycle.
- Operating Leverage & Headcount: Management has intentionally decouples headcount growth from revenue growth by stalling hiring in core software development. This move aims to force the adoption of AI-led productivity tools, targeting higher margins despite near-term capacity constraints.
- Acquisition Strategy: Acquired InfraRisk (Australia) to fill gaps in commercial and auto lending. Strategy remains focused on founder-led, product-heavy firms where the cost of acquisition is lower than the cost of internal development.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | ~30% CAGR (Long-term) | Management targets being a top-three global player in chosen segments by 2030. |
| Operating Cash Flow | 60% of EBITDA | Target for FY26 conversion, though H1 was negative ₹80cr due to execution cycles. |
| EBITDA Margins | 20% Plus | Expected to be maintained through AI-led productivity gains and IP-led revenue. |
Risks & Constraints
| Risk | Context |
|---|---|
| Capacity Constraints | Due to the deliberate freeze on headcount growth during the AI transition, the firm faces near-term pressure in meeting high delivery demand. Management views this as a necessary trade-off for long-term operating leverage. |
| Cash Flow Seasonality | The business model exhibits significant cash conversion cyclicality, with heavy reliance on Q4 project go-lives and sign-offs for positive annual OCF. |
| Technological Disruption | The rapid rise of AI-driven reasoning requires a concentrated investment cycle (9-10% of revenue) to prevent legacy software from becoming obsolete. |
Q&A Highlights
Strategic Wins & Value
- Question: How have deal sizes evolved over five years? (Varun Gandhi)
- Answer: Five years ago, the firm was largely services-led with minimal sales presence. Today, deal sizes have moved from small services contracts to landmark platform wins like the ₹1,900 crore Singapore mandate and large-scale metro projects (Ashish Rai).
AI Investment Rationale
- Question: What is the ROI horizon for AI spend? (Kartik Iyer)
- Answer: Three vectors: 1) Software 2.0 (2-3 year ROI) to increase wallet share; 2) Agentic execution (Medium-term ROI) to capture operations spend; and 3) Internal productivity (Near-term ROI) through headcount decoupling (Ashish Rai).
Software Obsolescence Narrative
- Question: Can AI-led development replace the need for complex banking software? (Harshit Sachdeva)
- Answer: Heavily regulated industries like banking have structural inertia. While front-end SaaS may be disruptable, core banking processes are too complex for simple AI agents to replace without the underlying logic of incumbent providers. Aurionpro is positioning itself as the AI-native incumbent (Ashish Rai).
Cash Flow & Receivables
- Question: When will cash flows turn positive? (Vinay Menon/Kuber Chauhan)
- Answer: H1 was negative ₹80cr, typical for the business cycle. Expect to end FY26 positive, targeting 60% EBITDA-to-cash conversion, depending heavily on Q4 execution and DSOs maintained at 100-110 days (Ashish Rai).
Key Takeaway
Aurionpro delivered a solid Q3 FY26, with 9M revenue growing 26% YoY to ₹1,066 crores and EBITDA margins holding above 20%. The quarter was defined by record sales momentum, notably the Singapore lending mandate and significant transit orders from Delhi Metro and Titagarh. Strategically, the company is undergoing an aggressive transition to an AI-native “Software 2.0” model, underpinned by Lexsi Labs’ R&D. A critical management decision to freeze headcount growth while revenues scale reflects a commitment to driving superior operating leverage through AI-led productivity. While this creates temporary capacity bottlenecks, it aligns with the Vision 2030 goal of global leadership in high-margin Fintech and Transit niches. The company remains on track for ~30% growth, with a focus on converting its record ₹1,650 crore order book into positive operating cash flow by fiscal year-end.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: