Aurionpro Solutions Ltd. shares fell as much as 12.3% on Tuesday to Rs 733.50 after the company reported a sequential decline in profit and margins for the June quarter, despite posting higher revenue.
The stock was headed for its steepest one-day decline since May 12. Trading volumes were more than 19 times the average, according to Bloomberg data.
The company reported consolidated revenue of Rs 358 crore for the first quarter, up 3.6% from Rs 346 crore in the previous quarter. Earnings before interest and tax fell 11.3% to Rs 50.1 crore from Rs 56.5 crore, while the EBIT margin narrowed to 14% from 16.3%.
Net profit declined 25.4% quarter-on-quarter to Rs 45.9 crore from Rs 61.5 crore.
The quarter reflected pressure on profitability even as revenue continued to grow. The company said supply-chain disruptions and geopolitical issues in the Middle East and Africa affected performance during the period.
Business Update
Aurionpro added 23 new customer logos during the quarter and secured its largest-ever U.S. deal, valued at more than $33 million. It also won a six-year transaction banking mandate from Ujjivan Small Finance Bank.
The banking and fintech business reported revenue of Rs 201 crore, up 4.7% year-on-year. Revenue from the Technology Innovation Group increased 8.4% year-on-year to Rs 157 crore.
Management said execution momentum is improving across its businesses and that the company is expanding its transaction banking footprint in Europe.
It said Arya.ai continues to see strong demand from banking and insurance clients, while the transit business pipeline has expanded materially. Management also said the data centre business outlook remains robust and that the company will continue investing in research and development while maintaining margin discipline.
The company said demand is broadening across the U.S., Europe and Southeast Asia, and it expects growth to accelerate meaningfully in the second half of FY27.
According to Bloomberg data, all three analysts tracking the stock have a "buy" rating. The consensus target price stands at Rs 1,095, implying a potential upside of about 48% from the last regular trade.
The stock has declined 45% over the past 12 months.
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