Arisinfra Solutions: Q2 FY26 Performance Highlights Strong Growth and Strategic Expansion

Arisinfra Solutions Limited, a key player in India's construction material supply and services network, has reported a robust financial performance for the second quarter and first half of fiscal year 2026. The company's Q2 FY26 results underscore its growing strength and the maturity of its integrated operating model, driven by consistent growth across its Contract Manufacturing and Services segments, coupled with visible improvements in working capital efficiency and profitability. The company's strategic partnerships and asset-light model are positioning it for sustained growth in India's rapidly evolving infrastructure and real estate ecosystem.

For Q2 FY26, Arisinfra Solutions recorded a significant 38% year-on-year increase in revenue from operations, reaching INR241.19 crore. This growth was complemented by a remarkable 50.4% rise in EBITDA to INR22.54 crore, with the EBITDA margin expanding to 9.34%. The company's Profit After Tax (PAT) saw a substantial turnaround, moving from a loss of INR1.98 crore in Q2 FY25 to a profit of INR15.26 crore. This strong performance is attributed to higher daily dispatches, deeper penetration into existing customer bases, and an increasing revenue contribution from value-added service businesses. The first half of FY26 also demonstrated solid growth, with revenue from operations at INR453.27 crore, up 24.3% year-on-year, and PAT at INR20.37 crore, a significant jump from INR4.48 crore in H1 FY25.

Operational Excellence and Strategic Growth Drivers

Arisinfra's operational strategy is centered on an asset-light, technology-driven model that connects developers, contractors, and material suppliers efficiently. The company's reserve capacity has been expanded to 9.5 million metric tons annually across 15 plants, with a target to achieve over 90% utilization within the next 6 to 18 months. This approach allows for scalable growth without heavy capital expenditure, as the company utilizes long-term commitments for reserved capacities rather than direct investments in manufacturing assets.

The revenue mix is also evolving favorably. For FY26 YTD, the Category Mix shows Aggregates contributing 44% of revenue, RMC 19%, Steel 15%, Cement 10%, Chemicals & Walling 4%, and Others 8%. Management highlighted the increasing contribution from higher-margin segments, with Contract Manufacturing now contributing 42% and Services 8% to the revenue. These shifts are crucial for sustaining and improving EBITDA margins going forward.

Strengthening Financial Discipline and Market Presence

One of the most significant achievements in Q2 FY26 was the improvement in working capital management. The working capital cycle reduced to 84 days from 114 days, surpassing the company's target of 80-90 days by March 2026. This was a result of disciplined collection practices, structured credit control mechanisms, and effective utilization of supply chain financing limits. Furthermore, consolidated borrowings have been substantially reduced from INR336 crore as of March 31, 2025, to just INR52 crore as of September 30, 2025, while cash and cash equivalents increased to about INR200 crore. This improved liquidity position enables the company to sustain growth without relying on short-term borrowings and also allows for potential reductions in finance costs by approximately 200 basis points.

Arisinfra has also expanded its market presence through strategic partnerships. Notable collaborations include a partnership with Vaishnavi Residences to launch the Arsh Greens villa project (GDV ₹200+ crore) and a ₹250+ crore GDV project with Merusri Developers for Merusri Sunscape. Additionally, the company secured a ₹40 crore development management mandate from AVS Group in Mumbai and a strategic partnership with Transcon Group and Amogaya Projects, projected to unlock over ₹12,000 crore in real estate value and contribute ₹9.6 crore in incremental EBITDA over the next five months. These initiatives reinforce Arisinfra's position as a strategic growth partner in the real estate ecosystem.

Outlook and Investor Confidence

Arisinfra's management remains confident in its growth trajectory, guiding for a full-year top-line of INR1000-1050 crore and expecting to sustain 35-40% year-on-year revenue growth. The focus on deepening technology, strengthening capital efficiency, and scaling with discipline is expected to drive continued profitable growth. The company's integrated model, capital efficiency, and disciplined execution are key to delivering sustained value for all stakeholders. The infrastructure and real estate sectors in India are undergoing rapid formalization, creating significant opportunities for structured, digitally enabled platforms like Arisinfra to thrive.