This article first appeared on GuruFocus .
-
Revenue from Operations:INR24.44 crores, a 27.01% year-on-year increase from INR19.24 crores in Q1 FY26.
-
EBITDA:INR4.99 crores, up from INR3.70 crores in the prior-year quarter.
-
EBITDA Margin:Improved to 20.19%, compared with 18.99% in Q1 FY26 and 18.58% in Q4 FY26.
-
Profit Before Tax (PBT):INR3.46 crores, reflecting a 66.64% year-on-year growth.
-
Profit After Tax (PAT):INR2.56 crores, a significant 141.94% year-on-year increase from INR1.06 crores in Q1 FY26.
-
PAT Margin:Improved to 10.46%, compared with 5.5% in the corresponding quarter last year.
-
Warning! GuruFocus has detected 2 Warning Sign with NSE:AARON.
-
Is NSE:AARON fairly valued? Test your thesis with our free DCF calculator.
Release Date: August 17, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Revenue from operations grew 27.01% year-on-year to INR24.44 crores in Q1 FY27.
-
EBITDA margin improved to 20.19% from 18.99% in the same quarter last year, reflecting better operating efficiency.
-
Profit after tax surged 141.94% year-on-year to INR2.56 crores, with PAT margin expanding to 10.46%.
-
The company is targeting 25-30% revenue growth for FY27, with a sustainable EBITDA margin of 18-20%.
-
The new EVOC 360 home lift product has received positive market response, with exclusive partnerships in multiple states and a competitive price point of INR8-9 lakhs versus competitors' INR10-12 lakhs.
Negative Points
-
International expansion in Africa (Kenya and Tanzania) has been slow due to prevailing political and economic conditions, with no significant growth yet.
-
Orders from major international OEMs like Johnson and Schindler have not yet materialized; only Fujitech has started placing orders.
-
The stainless steel sheet business is facing headwinds from fluctuating steel prices, which has dampened sales volumes.
-
Capacity utilization is currently only around 45-50%, indicating underutilization of the manufacturing infrastructure.
-
The company has not yet received any orders from the railway sector, as the vendor registration process is lengthy and competitive.
Q & A Highlights
Q: What is the company's revenue and EBITDA margin guidance for FY27, and how does the management view the sustainability of current profitability levels? A: Monish Doshi, CFO and Executive Director, stated that the company is targeting 25% to 30% revenue growth for the year, with a business mix similar to last year. He emphasized that the management is focused on maintaining a sustainable EBITDA margin in the 18% to 20% range, which has been the trend over the last couple of years, with a continued focus on improving margins over time.
Q: What is the current status of engagements with international OEMs like Johnson, Schindler, and Fujitech for contract manufacturing? A: Paresh Nair, President, clarified that while the registration process has started with Johnson and Vittur, and Fujitech has begun placing regular orders for sheets, orders from the other international OEMs have not yet commenced. He noted that samples have been taken and vendor registration is underway, expressing hope for significant business from these OEMs in the next quarter.
Q: Can you provide an update on the EVOC 360 home lift product, including its market positioning, pricing, and revenue contribution? A: Monish Doshi explained that EVOC 360 is a complete elevator product, not a low-margin one, with margins around 20% to 25%. It currently contributes approximately 5% to 7% of total revenue. The pricing for the product starts around INR6 lakhs, with the end product after installation costing around INR8 to 9 lakhs, which is competitive compared to the market range of INR10 to 12 lakhs. The company has secured exclusive partnerships in four to five territories and is targeting around 150 units of home lifts by the end of the year.
Q: The segmental results show losses in the steel polishing division. Can you explain the reason for this and the division's actual profitability? A: Monish Doshi clarified that the steel division is not actually making losses. Most of its production is consumed internally by the Elevator division through transfer pricing. The external sales only occur when there is excess production beyond in-house demand. He advised looking at the business as a whole, as the division is profitable when considered in that context.
Q: How does the company manage the impact of fluctuating steel prices on its business, and what is the typical time lag for passing on price changes? A: Monish Doshi explained that the Steel division's orders are fully volatile to steel pricing, with changes passed on to customers immediately. In the Elevator business, there is a fixed margin and price range, so the company absorbs minor fluctuations. However, if the price change exceeds 10% to 15%, the company executes price changes within a month, while also keeping competitors' pricing in mind.
Q: What is the current capacity utilization, and are we on track to achieve the target of 3,500 doors per month? A: Monish Doshi stated that the current overall capacity utilization is around 45% to 50%. The company is aligning production to demand to avoid overproduction and blocking working capital. He confirmed that they are moving towards the 3,500 doors per month target and are confident of achieving it in the coming quarters, provided market conditions remain favorable.
Q: What is the company's strategy for scaling up the Stelix brand for stainless steel sheets, and what is its current revenue contribution? A: Paresh Nair clarified that Stelix is a branding strategy for the stainless steel sheets manufactured in-house, not a separate manufacturing setup. The brand was created to help elevator manufacturers sell to their customers. Monish Doshi added that embossed and designer sheets contribute around 10% to 15% of Q1 sales. While demand exists, steel price fluctuations have impacted sales, but interest from companies like Fujitech, Omega, and Techno is positive.
Q: Can you provide details on the company's distribution network and plans for expansion? A: Paresh Nair stated that the company is present in all states of India with over 750 regular customers, of which more than 80% are consistent buyers. They have warehouses in Ahmedabad and Kolkata and traders in major cities like Indore, Raipur, Hyderabad, and Patna. The company is actively appointing more traders, particularly in the northern region, to enhance development and market reach.
Q: What is the company's plan for funding incremental working capital requirements as it scales up towards the INR100 crore revenue milestone? A: Monish Doshi stated that the company is currently focused on increasing productivity and reducing inventory days to efficiently use working capital. Depending on future requirements, they may consider raising funds from the market or taking on additional debt, but no final decision has been made. The management is mindful of ensuring that a lack of working capital does not hinder scaling up.
Q: What is the competitive landscape for the EVOC 360 home lift, and what is the company's unique selling proposition? A: Monish Doshi highlighted that the main USP of EVOC 360 is its battery management system, which can operate the lift for 100 cycles without power, a feature no other company in India currently offers. Competitors like Nibhav and Elite Elevator provide similar solutions, but EVOC 360 offers advanced features at a better price point. The company is focusing on tier 2 and tier 3 cities where bungalow culture is more prevalent.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
