Arisinfra Solutions Ltd (NSE: ARISINFRA) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Srinivasan Gopalan — Chief Executive Officer
Analysts:
Deepak Podar — Analyst
Kaushal Sharma — Analyst
Namish Gupta — Analyst
Kapil Ahuja — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q3FY26 earnings call of Aris Infra Solutions Ltd. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star and zero on your touchstone phone. Please note that this conference is being recorded today. We have with us Mr. Raunak Morbiha, Chairman and Managing Director, Mr. Srinivasan Gopalan, Chief Executive Officer and Mr. Bhavik Kara, full time Director and Chief Financial Officer.
We will begin the call with the opening remarks from the management after which we will have the forum open for the interactive Q and A session. I must remind you that this conference call may include forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. I now hand the conference over to Mr. Srinivasan Gopalan, Chief Executive Officer of Iris Infra Solutions Limited for his opening remarks.
Thank you. And over to you, sir.
Srinivasan Gopalan — Chief Executive Officer
Good afternoon ladies and gentlemen and thank you for joining us. Before we begin, a quick update. Over the last few months we have evolved our brand from Ares Infra to calling ourselves simply Ares. This reflects what the business has grown into. Aris today is not just an infrastructure supplier, it is a network and an organized execution backbone for construction materials. The simpler name aligns the brand with the role we now play across supply, execution and risk management in the construction ecosystem. Before stepping back into the broader context, let me Briefly share what Q3 looked like for us.
Because this quarter clearly marks a step change in the business, let me quickly run through the excellent performance that we have had this quarter as compared to last year. Same quarter. Last year, same quarter we had a revenue of 181 crores and the same period this year is 270 crores, marking a 50% rise in our turnover. The gross margins have done exceedingly well from a 15.5% in Q3 2025 through a 17.4% in Q3 2026, an increase of almost 200 basis points. The EBITDA increased 2.3 times from a mere 13 crores to a 30 crores. And the EBITDA percentages last year was at 9.38% which has improved itself to 11.75%.
And the pact increased 9 times from a 2 crore to an 18.27 crores this quarter. There are reasons for these things to happen. Apart from the profitability that we spoke about, it’s important to know the net working capital days. The net working capital days in Q3 2025 was 116 days, which has come down drastically by 42 days to 74 days. The increase in gross margins and EBITDA are very, very clearly defined and an outcome of the strategy that we have clearly worked on. The contract manufacturing portion, which is a highly profitable venture, increased from a 35% of turnover to a 48%.
From a numbers perspective, it increased from 65 crores to 130 crores, almost two times. Similarly, the services, where again the margins are exceedingly high. The percentage on sales last year was at 6% which increased to 9% and in absolute terms increased from a mere 11 crores to a current 24 crores, showing more than 2x growth. To put the performance in perspective, it’s important to briefly look at the environment we are operating in and the opportunities that we have in front of us. India is currently executing one of the largest infrastructure buildouts in the world. The Government of India has budgeted close to 11 lakh crore of capital expenditure in financial year 26 alone, nearly three times what it was five years ago.
Large expressways, freight corridors, metro networks, airports, ports and urban infrastructure projects are under construction across the country, spanning multiple regions and asset classes. What stands out is that while these projects are large, organized and institutionally funded, the materials that build them, namely aggregates, concrete and allied inputs, are still supplied through a fragmented and largely informal system. As project sizes grow and timelines tighten, the lack of an organized execution led distributor layer becomes a real bottleneck. This is not a pricing issue. It is fundamentally an execution, reliability and risk management issue. And that is precisely the gap errors exist to address coming back to our business.
One of the most important shifts we are seeing now is where profitability is coming from, not just how fast revenue is growing. Aris operates across three segments, B2B Trade, Contract Manufacturing and services. And together they form a very deliberate progression in how customers engage with us. B2B trade acts as an entry layer. It gives us scale, customer relationships and steady demand across regions. As these relationships deepen, a larger share of business naturally moves into contract manufacturing, where we secure capacity, improve utilization and bring predictability into supply, achieving the economics of manufacturing without owning plants, vehicles or carrying the operational burden of running them.
The most powerful shift, however, is in our service offerings. While services contribute a smaller share of revenue the they already contribute a disproportionately large share of ebitda. This is because services are built on execution capability, systems and trust, not on deploying capital. As this segment scales, EBITDA grows with very little incremental capital. What this mix shift tells us is very important. As the business moves from trade to manufacturing partnerships and into services, profitability improves while capital intensity reduces. This is why EBITDA is now growing faster than revenue and why returns on capital are structurally expanding as the mix shifts towards services and contract manufacturing.
Looking at performance, over the nine months, revenue stood at 724 crores, representing a 33% year on year increase. More importantly, EBITDA has grown by around 54% year on year. And profit after tax has increased nearly six times over the same nine month period as compared to last year. This clearly shows operating leverage and improving earnings quality. Equally important is how this growth has been funded. Despite rapid scale up, net working capital has reduced from a well over 116 days last year to below 75 days now. Unlocking capital within the business. This improvement has been driven by tighter credit discipline, better counterparty quality and technology led monitoring of receivables and execution.
The practical implication is straightforward. The business can now grow faster without requiring proportionately more capital, which is often the key concern investors have in this sector. When you put all this together, what becomes clear is that the model has entered a new phase. Scale is improving margins, margins are improving cash generation and stronger cash generation is reducing capital intensity. This feedback loop is what allows ARES to compound in a disciplined and sustainable manner. As we move forward, our focus remains unchanged. Deepen execution capability, strengthen risk and credit control and scale with discipline. India’s construction ecosystem is formalizing rapidly and the need for an organized execution backbone for construction materials will only grow from here.
We believe ARIS is well positioned to play that role and to do so in a very, very capital efficient manner. Thank you for your time. We are happy to take any questions that you have.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question. It comes from the line of Deepak Podar with Sapphire Capital. Please go ahead.
Deepak Podar
I’m audible, sir.
Srinivasan Gopalan
Yes, yes.
Deepak Podar
Okay, okay. First of all, I mean many congratulations. Great set of numbers. I mean I could see overall improvement. Even your working capital has improved. A lot of so many congratulations on that front. So now I just wanted to understand, on your mix now it’s 47% B2B 44% contract and 9% is services. And that’s a marked improvement from what we have seen last year. I mean 33% contract manufacturing to 44% now. So how should one look at this mix going ahead? I mean though our focus remains on contract and services. But how are we seeing the mix?
Srinivasan Gopalan
Yeah, just like to rectify a little bit. The contract manufacturing segment now contributes to 48% of the revenue. It was 44% at the end of quarter two. We are seeing improved utilization even while rapidly scaling. The revenue contribution has increased. And we expect that as the utilization improves going further, the revenue contribution will increase. And as we move, you know, as we shift more towards asset light manufacturing and services, the improved profitability is here to sustain. And that’s how the model is designed.
Deepak Podar
Okay, so given improved profitability is sustainable. So I mean without other income, your EBITDA margin is close to 11% this quarter. So is that a sustainable thing, that we should keep it as a base going forward?
Srinivasan Gopalan
Yes, yes, we do believe so because the improvement is structural. Margins are improving due to mix and execution, not temporary pricing or one offs. As long as this mix continues and working capital stays disciplined, profitability should remain stable and improve gradually.
Deepak Podar
Understood? Understood. And is there any levers which can drive this 11% even further higher? I mean, can you throw some more light on that?
Srinivasan Gopalan
At the moment we are happy with how the model is turning out and with all the capital efficiency that is coming to play now. And the improved profitability is only a reinforcement of the business model that we have at play. So the focus is going to be on improving this mix, focusing on capital efficiency. And as long as these underlying, underlying matters are in place, I think the profitability will sustain.
Deepak Podar
Okay, fair enough. And just one last thing. In terms of your growth, I mean we have seen very good growth on your top line since last two quarters. I mean 39% for second quarter and 49% in this third quarter. Now for this entire year, a 40% growth is what we have been seeing in the past. So we are on track for that.
Srinivasan Gopalan
Yes, we are absolutely on track for the guidance that we have given, which is 40% year on year growth. However, having said that, we are projecting good profitability as well. Well, so, yes, well in line to achieve the growth numbers that we are predicting.
Deepak Podar
Okay. And we are going into the strongest quarter, Right. Fourth quarter ideally would be the strongest. So how is that traction? Can you throw some light? How’s the on ground situation in terms of traction on the customers?
Srinivasan Gopalan
Absolutely, absolutely. Quarter four is usually the strongest. We have been preparing for this ever since we started going into December planning our production lines, revenue, visibility. And because of the projects that we are involved in, the customers that we have onboarded and the recurring order orders that we’ve been getting, we have real good visibility on the demand, not just this quarter but for the next three to four quarters. And that’s why we are confident of achieving these good numbers.
Deepak Podar
Okay, so we have good visibility from customer in quarter four as well, right?
Srinivasan Gopalan
Absolutely. 100%.
Deepak Podar
Okay. And in the supply side, how we’re looking at in the supply side in terms of getting more mills and all to contract with you guys? I mean, can you throw some more light on that?
Deepak Podar
Yes.
Srinivasan Gopalan
So you have two things here with respect to contract manufacturing. As you know mentioned in the last call, we currently have about 9 million metric tons of capacity under our control through this network. How much?
Deepak Podar
Nine. We have nine.
Srinivasan Gopalan
Right. 9 million 90 lakh metric tons annually. That is spread across stone aggregates and ready mixed concrete. But recently we also made an announcement of entering a new segment which is is called asphalt and that’s a segment which looks pretty exciting for the future. So that is one new vertical that we have added. We are in the process of forming a joint venture for the same and we have executed two projects which kind of give us experience of how this business is done. And we have real good visibility with respect to the orders in the next few quarters.
We made a couple of announcements in that aspect as well of a 35 crore order from an infra company. And we recently executed a small order for Appco in Mumbai as well. So contract manufacturing looks very, very exciting for the next few quarters.
Deepak Podar
And what can be the potential of this asphalt opportunity size for us?
Srinivasan Gopalan
Yes, we are projecting revenue in the north of 80 to 100 crores in the next 12 to 18 months.
Deepak Podar
In next 12 to 18 months?
Srinivasan Gopalan
Yes.
Deepak Podar
And margins are in line with the company level margins or is it better?
Srinivasan Gopalan
It will be in line with the company level margins and that is why we are confident of sustaining these margins as well as we go further.
Deepak Podar
Understood. I mean that’s very helpful, sir. And that’s it from my side and wish you all the very best. Thank you so much.
Srinivasan Gopalan
Thank you so much.
operator
Thank you. The next question comes from the line of Kaushal Sharma At Equinox Capital. Please go ahead.
Kaushal Sharma
Hi sir, very good evening. Am I audible?
Srinivasan Gopalan
Good evening. Yes, yes.
Kaushal Sharma
So my question is on your congratulations first of all for very good set of numbers. So my question is on your working capital side, sir, could you please tell me what is the current receivables as on date in our books and how much is for more than six months and less than six months. And what about our borrowings as of now?
Srinivasan Gopalan
Yeah, the current receivable number is approximately 385 crores. And above six months the number is close to about 50 to 55 crores. Our current borrowings are in the range of around 40 crores. And this is only the working capital facilities and a small long term debt of about 6 crores.
Kaushal Sharma
And so I can see in your result in note number seven that we have utilized almost 100% of our working capital that we have reached through IPO. But now we are projecting a good aggressive growth of 35 to 40%. So how would we source these incremental working capital going ahead? And currently we are securing a good amount of capacities in terms of contract manufacturing against which we require certain deposits. So if we expand our contract manufacturing like we are growing, so we require certain amount for these security deposits as well. So how we are going to fund will this increase our borrowings going forward? And what kind of levels are we targeting?
Srinivasan Gopalan
Yeah, first on the utilization of IPO proceeds for working capital. This is not locked up capital. These are vendor payments that are returned through customer receivables. And we have had two very healthy quarters of receivables. So it’s back in the system which are being reinvested as working capital. A note on trade deposits and advances. It’s very important to note what these deposits are. They are a strategic enabler, not idle capital. Deposits actually help us secure capacity, prioritize supply and better commercial terms in a fragmented ecosystem. In return we get reliability and higher throughput without owning assets.
So as utilization improves, incremental growth requires relatively lower incremental deposits. So that is the advantage that we have or that is the model that we are operating on where we invest one time deposit to generate multi year returns.
Kaushal Sharma
So what kind of sustainable borrowing levels are we looking in our business going ahead?
Srinivasan Gopalan
So I think we have mentioned.
Kaushal Sharma
Sorry sir, so what kind of range are we expecting in terms of our borrowing going ahead?
Srinivasan Gopalan
We would be, we would be between 0.4 to 0.5 as our leverage at any point in time. We will not increase that. To answer your question specifically though it Shows that the working capital limits from the proceeds are used. As mentioned by Raunak, these have come back as debtors collections. And we have a healthy cash balance of more than 150 crores in the balance sheet. So even if we have to create new capacities, we have enough gunpowder to provide deposits. However, if you look at the deposits that we have already provided and the kind of capacity utilization that we have, we still have around 30 to 40% room to grow in the existing deposits itself.
Kaushal Sharma
Okay, so that will not increase our boarding, right?
Srinivasan Gopalan
No, that will not.
Kaushal Sharma
Okay. And so what is our current existing contact manufacturing capacity and what is our target in terms of securing further and utilization?
Srinivasan Gopalan
Yes. The current capacity is about 9 million metric tons. As of quarter two we were at a utilization of 45% plus. As of quarter three now we are at a utilization of 55% plus. So there is significant headroom even with the current capacity that we have. And that is why we are confident that the revenue from contribution from contract manufacturing will increase as we grow further in the next few quarters.
Kaushal Sharma
And what is the terms of the security deposit that we need to give against securing these capacity? Like when will these securities rely on our business?
Srinivasan Gopalan
So these deposits are refundable in nature. These are multiyear deposits. As and when the concerned plant utilization increases and improves to about 80% plus. And when the cash flows of that particular plant become healthy, these deposits will be returned back into the system and be invested somewhere else to increase the capacity. That is how these deposits are designed.
Kaushal Sharma
Okay sir. Got it. Thank you very much for answering that question. I was the very.
Srinivasan Gopalan
Thank you so much.
Kaushal Sharma
Thank you.
operator
The next question comes from the line of Namish Gupta, an individual investor. Please go ahead.
Namish Gupta
Hello.
Srinivasan Gopalan
Yes.
operator
Oh yes sir. You’re audible. Please go ahead. Okay sir.
Namish Gupta
Congratulations on a very good set of numbers.
Srinivasan Gopalan
Thank you.
Namish Gupta
Working capital days like debtors. Around 120 to 130 days. Industry level benchmark. Sir. Like. Competitors infra.market working capital days.
Srinivasan Gopalan
Fundamental nature industry. So just infra Companies Builders Credit Cycle company Koibi Road, Banari Unkobijo Bill submission. Industry number standards. But ismay efficiency payables number or payable or receivable K Beach Kajo Gap here. Capital unlock Khadiya Jiski versus a system efficiency quality of receivables.
Namish Gupta
Okay. I think same line of business.
Srinivasan Gopalan
Numbers in terms of receivables payables without affecting vendor payment or Hamara concentration on focus. Abhishek number quality of receivables.
Namish Gupta
Okay. Customer retention ratio.
Srinivasan Gopalan
Yes sir. Repeat occurrence johe 80% differential b2c segments. Because a project normally those. Repeat business 80% plus.
Namish Gupta
Okay okay. I mean actually my industry. Up like contractors. Developers. Gross margins.
Srinivasan Gopalan
Or Hamari operating profit. Profitability gross margin materials or services Johamara Igbana profit they could. Services. Or manga based Hamara volume discounts. It is only because of this combination of supply, services and technology which is our differentiator Gross margin or operating profit.
Namish Gupta
Gross margin manufacturer.
Srinivasan Gopalan
Sir aggregates business manufacturing margin. Aggregates manufacturer operate. Margins high hair or Uska main reason or yay material complex or Isco bulk may source Karna Mushkil. Aggregates. So aggregates exciting segment.
Namish Gupta
Okay, last question or may just normally aggregate supplier normally normally joby supply Karthi dealing Karthika tax system as like GST government joby lagati normally unorganized. Cartosal sir.
Srinivasan Gopalan
Ham serif B2B segment may have retail business. 100%.
Namish Gupta
Thank you sir. Thank you.
Deepak Podar
Thank you.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question to the management you may press star n1 participants, if you wish to ask a question to the management you may press star and 1. The next question comes from the line of Kapil Ahuja with Equinox Capital. Please go ahead.
Kapil Ahuja
Hi, I’m audience. Yeah.
operator
Yes sir.
Kapil Ahuja
Yeah. Actually I wanted to have some clarification on receivables. So you told that you have if I throw above six. So are they coming to company or what is the status of the 65 crore receivables? Because six months is a bit time.
Srinivasan Gopalan
Yes. So the six month receivables as a percent of total revenue close to total receivables is just about 12 to 14%. This has been continuously moving and every quarter we are seeing a reduction in the number of receivables we expect. All of these first of all are moving accounts. The ECL that we have taken which is basically the expected credit loss has been updated and we are following a waterfall mechanism to calculate that as well. This 55 crores, all of the accounts are moving and we expect this number to come down to about 30 to 35 crores by March.
And then we expect further movement in the next few quarters.
Kapil Ahuja
You are not expecting any write offs in this?
Srinivasan Gopalan
No, whatever. We are factored that in the ECL number which is already there in our pnl.
Kapil Ahuja
Okay, fine. And secondly regarding this is the same question that previous participants have also asked or I I want to. I wanted some clarification on this top. Line that you are growing 35 to 45 for 35 to 40% every year for. For FY27 if you go for 1100 crore target as per your guidance. So how will you manage your receivables? Even if you go for the 90 to 100 days of receivable cycle so you will be having receivables of above 300 crore. So how they can’t come from internal accruals. And how will you manage this working capital? Of course I can’t.
Srinivasan Gopalan
Well, I think yes, the concern would be that, you know, the. The business would become more capital hungry as it scales. Yes, but. Normally applies to traditional models, not ours. We secure capacity instead of owning assets and services which are growing scale with very little incremental capital. I mean the fact that the net working capital now is below 80 days and it is continuously improving down from about 120 days. It just tells us growth is becoming less capital intensive, not more.
Kapil Ahuja
So that could impact the margins also.
Srinivasan Gopalan
No, in fact Y is scaling rapidly and the net working capital days down below 80 days and with the gross margin improving to about 17% plus and EBITDA growing from growing to about 11% plus, I think the efficiencies are, you know, in terms of profitability and capital efficiency, it’s all coming into play. So the model now I think we believe we are at an inflection point where the model is now compound itself. And as we move further, the benefits of scale in terms of profitability will also be visible.
Kapil Ahuja
So okay, so I’m getting you. So after 3, 2, 3 years when you are talking of 1800 crore top line. So this model will apply and you will be managing working capital days efficiently. Am I right?
Srinivasan Gopalan
Yes.
Kapil Ahuja
Okay. Thank you. That’s all from my side.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Srinivasan Gopalan for closing remarks.
Srinivasan Gopalan
Thank you ladies and gentlemen. We always keep looking forward for your blessings and confidence in our company. We thank you for that and look forward for more such updates. Thank you.
operator
Thank you on behalf of Aris Infra Solutions limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.