ARIS targets ₹3,000 crore revenue and ₹225 crore profit by FY30

ARIS has set FY30 management guidance for about ₹3,000 crore of revenue and about ₹225 crore of profit after tax (PAT), versus ₹1,068 crore and ₹60 crore in FY26, with contract manufacturing and DaaS, its project-mandate business, expected to provide 75% of revenue, up from 56%.

What is ARIS’s FY30 guidance?

ARIS guides for FY30 revenue of about ₹3,000 crore, an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 12-13%, and PAT of about ₹225 crore. These are consolidated management estimates, not reported results, and ARIS says the forward-looking figures are subject to risks and actual outcomes may differ.

The FY30 revenue objective is compared with audited FY26 revenue from operations of ₹1,067.5 crore, while the PAT objective is compared with audited FY26 PAT of ₹60.3 crore. The outlook pages round the FY26 base figures to ₹1,068 crore and ₹60 crore, respectively, and link the 260-360 basis-point EBITDA-margin increase to a changing revenue mix.

How fast does ARIS expect revenue and profit to grow?

ARIS expects revenue to grow at a compound annual growth rate (CAGR) of about 29% from FY26 to FY30 and PAT at about 39%. On management’s rounded guidance figures, revenue would increase by about 180% from ₹1,068 crore to about ₹3,000 crore, while PAT would increase by about 270% from ₹60 crore to about ₹225 crore.

The target follows reported revenue growth from ₹767.7 crore in FY25 to ₹1,067.5 crore in FY26, while PAT rose from ₹6 crore to ₹60.3 crore. For FY27, ARIS guides for revenue growth of 35-40%, an EBITDA margin of 11.5-12%, and PAT of about ₹100 crore; it gives no numerical revenue or PAT targets for FY28 and FY29, which its presentation describes as directional only.

Why does ARIS expect margins to rise by FY30?

ARIS expects the FY30 EBITDA margin to reach 12-13% as contract manufacturing and DaaS form a larger share of revenue. The guided range is 260-360 basis points above the 9.4% EBITDA margin reported in FY26 and is also above ARIS’s FY27 margin guidance of 11.5-12%.

The stated earnings path has PAT margin rising from 5.6% in FY26 to about 7.5% in FY30, after guidance of about 7% for FY27. ARIS defines EBITDA as revenue less purchases, inventory changes, loss allowance, employee expenses and other expenses, excluding other income; FY26 other income was ₹12.5 crore.

ARIS reported an interim increase in profitability in the unaudited first half of FY27. Revenue was ₹598.5 crore, EBITDA was ₹66.2 crore and EBITDA margin was 11.1%, compared with ₹453.3 crore, ₹40.7 crore and 9% in the first half of FY26; PAT rose to ₹42.9 crore from ₹20.4 crore and PAT margin increased by 270 basis points to 7.2%.

How will ARIS change its revenue mix by FY30?

ARIS expects contract manufacturing and DaaS together to account for 75% of FY30 revenue, compared with 56% in FY26. Contract manufacturing is projected to account for 65% of revenue, up from 47%, while DaaS is projected at 10%, compared with 9% in FY26.

The corresponding change is a lower business-to-business (B2B) supply share. B2B supply represented 44% of FY26 revenue and is projected to represent 25% in FY30, a 19-percentage-point reduction in mix terms, while total revenue is targeted to rise from ₹1,068 crore to about ₹3,000 crore.

ARIS says DaaS generates a fee on the gross development value (GDV), or expected sale value, of projects under mandate, while each project also buys materials from ARIS. At 30 September, DaaS order book stood at ₹2,567 crore; following the October addition of Ramdev Plaza Phase II, valued at ₹250 crore, ARIS reported a live order book above ₹2,750 crore and 15 DaaS projects, up from 10 at 30 June.

What operating evidence has ARIS reported before FY30?

ARIS reported operating cash flow of ₹60.1 crore in the first half of FY27, equal to 1.4 times PAT of ₹42.9 crore. The half-year figures are unaudited, while net working-capital days declined to 54 in the second quarter of FY27 from 97 in the first quarter of FY26.

Interest cover was 4.6 times in the first half of FY27, compared with 2.5 times a year earlier. ARIS defines interest cover as EBITDA divided by finance cost; EBITDA increased to ₹66.2 crore from ₹40.7 crore while finance costs fell to ₹14.4 crore from ₹16.3 crore over the same half-year comparison.

Annualised return on capital employed was 16.1% in the first half of FY27, compared with 15.8% in FY26. Management’s stated priorities for the next 18 months are to win more DaaS mandates, add exclusive partner plants, move more aggregates, ready-mix and asphalt or bitumen through those plants, and expand into new geographies; ARIS labels these priorities directional rather than guidance.

Conclusion

ARIS’s first multi-year outlook combines a scale target with a material change in sales composition. Management expects revenue to move from ₹1,068 crore in FY26 to about ₹3,000 crore in FY30, while contract manufacturing and DaaS increase from 56% to 75% of revenue and support a guided EBITDA margin of 12-13% and PAT of about ₹225 crore.

The next disclosed operating checkpoint is FY27 guidance for 35-40% revenue growth, an EBITDA margin of 11.5-12%, and PAT of about ₹100 crore. Progress on the stated 18-month plan to add DaaS mandates, secure partner-plant capacity and enter new geographies, as well as conversion of the 15-project DaaS base and live order book above ₹2,750 crore, will be relevant to the FY30 mix plan.