Aurionpro Solutions Ltd: Banking shines in a tough environment - Company Update

We maintain our Buy rating on the stock with a revised target price of Rs 1,820 Aurionpro delivered a strong Q3FY26, led by strong performance in the Banking segment while TIG also showed 23%+ growth. The banking segment saw 20%+ YoY growth on the back of strong deal wins across India and Singapore. Orderbook growth was robust at Rs 17bn+ (13.3% QoQ, 30.8% YoY), bolstered by deals wins from Delhi Metro, PSD for Mumbai metro and multiple banking deals across Indian PSU Banks. R&D spend continued to be at 8-9% of revenue for 9m. We model 23%+ organic growth over FY25–28E, backed by a strong order book, consistent execution, and a healthy balance sheet.

Banking shines, TIG to deliver in Q4:

Banking segment grew 20%+ in a tough environment seen across India and APAC. Deal wins across Singapore, Sri Lanka and India aided growth. We expect the company to start winning deals from US & Europe by Q4. TIG was subdued in Q3 as most of the deal wins will be recognized in Q4, which is a TIG heavy quarter seasonally. The PSD win from MMRDA was a positive surprise as it showcases Aurionpro’s growing product portfolio. Given the robust pipeline and ongoing traction in the transit vertical, we expect TIG to maintain a 25%+ growth trajectory over the next two years.

Improved cashflows a positive, growth to pick up:

Cashflow for 9MFY26 were at Rs 1-1.5 Bn vs (0.87 Bn) which shows strong collections in q3. We expect full year cashflows to be in the range of Rs 0.7-1 Bn as the company will have to invest in large orders across segments in Q4. We expect a strong Q4 from the company on the back of continued deal wins, and the execution of large deals and deals from US & Europe. We believe the governments proposal for a tax holiday for foreign entities to set up data centers is a huge opportunity for Aurionpro & increases its overall TAM.

Outlook:

Aurionpro continues to be on a firm strategic footing, backed by strong execution, a healthy order book, and a future-ready product portfolio. The company has an order book of Rs 17bn+, which supports 23%+ organic growth visibility. Beyond this, new deal wins, and potential M&A activity (Rs 2.5 Bn cash) are expected to further accelerate growth.

Valuations, view & risks:

We are factoring in 23.5%/23.2%/22.4% Revenue/EBITDA/PAT over FY25-FY28E, and value the company at 30x Q3FY28 PE (vs 35x), resulting in a TP of Rs 1,820. We have revised our multiple on the back of slower than expected growth and trimmed our earnings EPS by 5% CAGR over FY27/28e. We believe the company can continue growing at 25%+ (with acquisitions) over the next 2 years, along with 20% margins and a strong balance sheet. Our base case estimates do not factor any acquisitions. Key risks: Slowdown in BFSI IT spends in India and APAC; delay in metro projects and data centers.

Company website: https://www.aurionpro.com/

*CMP is as per report published date

Click to download the full Aurionpro Solutions Ltd Q3FY26 Company Update

Analyst:

• Vinay Menon - Senior Research Analyst, Institutional Equities (NISM-201600112117)
• Miloni Mehta - Research Associate, Institutional Equities (NISM-201800127664)

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FAQs on Aurionpro Solutions Ltd Q3FY26 Company Update

Here are quick answers to common investor queries on the Aurionpro investment opportunity, including entry strategy, targets and key growth drivers.

1. What is the ideal buying zone for Aurionpro?

Traders can consider accumulating the stock in the ₹880–920 range based on current price levels and support areas.

2. What is the expected target price?

The stock has potential upside towards ₹1,820 over the next 10–12 weeks, subject to momentum and broader market conditions.

3. What stop loss should be maintained?

A stop loss below ₹760 on a closing basis is recommended to manage downside risk.

4. What are the key factors supporting the bullish outlook?

Strong growth in the banking segment, a ₹17bn+ order book, improving cash flows and expected deal execution in transit, BFSI and data center opportunities.

5. What are the key risks to the trade?

Slowdown in BFSI IT spending, delays in metro or infrastructure projects, or slower execution of large orders may impact performance.

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