Aurionpro Solutions shares fall 8% after muted Q1 results; FY27 to see higher upfront investment

Shares of Aurionpro Solutions fell as much as 8% on Tuesday, July 28, after the company reported a muted June quarter as its margins continued to decline sequentially.

The company's consolidated profit after tax (PAT) declined 25.4% to ₹45.86 crore from ₹61.5 crore in the prior quarter.

Its revenue from operations increased by 3.77% to ₹358 crore in the first quarter from ₹345 crore in the previous one.

The company's earnings before interest, taxes, depreciation and amortization (EBITDA) declined 6.7% to ₹61.8 crore from ₹66.3 crore while its EBITDA margin contracted to 17.27% from 19.2% sequentially.

Aurionpro Solutions added 23 new customer logos in the quarter under review.

The banking and fintech segment revenue increased by 4.7% to reach ₹201 crore, while the Technology Innovation Group saw revenue growth of 8.4% sequentially to ₹157 crore.

The company's revenue conversion remained modestly below normal trajectory expectations. Factors impacting earning seasonality included raising input costs due to supply chain disruptions, timing shifts in a few projects and geopolitical disruptions in the Middle East and Africa (MEA).

According to the company, these effects will normalize over the next couple of quarters.

Aurionpro Solutions said for the ongoing fiscal, it is watchful on the geopolitical environment which could continue to delay execution in the MEA geography.

For financial year 2027, the company sees higher upfront investment than in a typical year. It attributed this to larger projects, which bring in higher working capital needs as they scale.

Two months ago, Aurionpro Solutions secured one of its largest wins in the US market — a $33 million fintech deal via its US-based subsidiary Aurionpro Fintech Inc.

It inked a strategic three-year agreement with a leading US-based digital insurance payments platform. Aurionpro would be providing proprietary software and advanced echnology solutions, including enhancement and maintenance of the current payment platform, cloud and DevOps soltuions and AI and data engineering support.

Aurionpro Solutions added that the deal is expected to generate over $33 million in revenue over the contract period.

Shares of Aurionpro Solutions are trading 7.3% lower on Tuesday at ₹775.15. The stock is down 27% so far this year and is nearing its 52-week low of ₹719.6. The stock has nearly halved from its 52-week high level of ₹1,507.

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