Aurionpro Solutions Ltd - Strong performance driven by TIG | MNCL Research Update

We maintain our Buy rating on the stock with a target price of Rs 2,070. Aurionpro delivered a strong Q2FY26, led by continued momentum in the TIG segment - transit and data center verticals. The banking segment was soft QoQ, but we expect momentum to pick up in H2FY26 with deal wins from Europe & US. Orderbook was at Rs 15bn (2.7% QoQ, 30.4% YoY), bolstered by deals wins from MMRDA (Rs 2.5 Bn) and UCO bank (Rs 0.5 Bn). Aurionpro plans to scale R&D and SG&A investments in FY26E & FY27E to deepen its presence in Europe, which will lead to margins being at the lower range of 20-21%. We model 25%+ organic growth over FY26E–27E, backed by a strong order book, consistent execution, and a healthy balance sheet.

TIG delivers strong growth; Banking to deliver through US & Europe:

Aurionpro's TIG segment continued its strong momentum, driven by major deal wins like the Mumbai Metro among other deals in data centre segment. We expect Rs 1.5 Bn from the metro deal to be executed in FY26e and rest in FY27e. Given the robust pipeline and ongoing traction in the transit vertical, we expect TIG to maintain a 30%+ growth trajectory over the next two years. Banking segment saw sluggish growth on a QoQ basis, but we expect it to rebound in H2FY26 on the back deal wins from Arya.ai, deal wins in India and deal wins from US & Europe.

Strong H2 to aid Balance sheet and Cashflows:

We expect Aurionpro to continue delivering 25%+ growth in H2 and we anticipate some incremental revenue from Arya.ai. Aarya.ai is expected to launch some new products/services in H2FY26 and they could generate revenue from FY27e. CFO for H1FY26 were Rs (0.87) Bn vs (0.67) Bn in H1FY25. We expect CFO for FY26 to be in the range of Rs 1.2-1.3 Bn vs Rs 1.57 Bn in FY25, as the company sees strong collections in H2FY26. Working capital was also stretched due to large Mumbai metro deal win and UCO bank deal which were booked at the end of the quarter. We expect receivables to normalize in the range of 110-120 days in H2FY26.

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 15bn+, which supports 23%+ organic growth visibility. Beyond this, new deal wins, and potential M&A activity (Rs 2.2 Bn cash) are expected to further accelerate growth.

Valuations, view & risks:

We are factoring in 25%/24.4%/24.3% Revenue/EBITDA/PAT over FY25-FY28E, and value the company at 35x Q2FY28 PE, resulting in a TP of Rs 2,070. We have revised our margin estimates lower on the back of incremental R&D spends over the next 2years. We believe the company can continue growing at 30%+ (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/

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Analyst:

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

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