Aurionpro Sol.

Aurionpro Solutions reported a strong Q2 FY26 with revenue growing 29% year-on-year, maintaining resilient EBITDA and PAT margins. The company added 19 new logos in Q2, bringing the first-half tally to 35, marking its strongest new logo addition in history. Management highlighted a consistent 30%+ annual growth rate over the last four years, with FY26 revenue projected to be between ₹1,500 crore and ₹1,600 crore.

Since its pivot four years ago, Aurionpro has invested over ₹1,000 crore in new product development and strategic acquisitions. The R&D budget for FY26 is projected at approximately ₹120 crore and is expected to increase. The company's AI strategy, driven by labs in Mumbai, Paris, and London, focuses on three key areas: AI-native applications, building an enterprise AI layer, and developing foundational technology for productionizing models, explainability, and observability. The AI business itself is growing at 100% for the company.

The Banking and FinTech segment saw a significant win with UCO Bank for its AI-led transaction banking platform, reinforcing Aurionpro's position in large financial institutions. The FinTech side is becoming increasingly material, with new product build-outs including a modern retail LO product and a brand-new loan servicing system expected within the next three months. The company also secured its first AI-led lending solution win in Europe, which is expected to go live in a few weeks.

The TIG segment achieved its largest order win in history with the two phases of the Mumbai Metro project. Both the transit payments and data center businesses within TIG demonstrated strong growth in the first half of the year. The data center business, specializing in complex design and build management, is growing 35-50% year-on-year, though its margins are currently 5-6% below the company's overall EBITDA margin.

Aurionpro is actively pursuing expansion in Europe, with initial sales cycles of 12-18 months and the 'flywheel' effect anticipated to be fully operational in about four quarters. The company has secured significant transit payment wins globally, including in California (8-9 cities), Maldives (in partnership with MasterCard), America, Costa Rica, Ecuador, Mexico, Australia, and the UK, showcasing its integrated hardware-to-software capabilities and strategic partnerships.

The company experienced negative cash flows in H1, which management attributes to project seasonality, with collections typically strengthening in Q4 as projects go live and billing milestones are met. Historically, Aurionpro converts 75-90% or more of its EBITDA to cash by year-end. Days Sales Outstanding (DSOs) have improved to approximately 100 days, down from 110 days last year.

Aurionpro invests heavily in product build-outs, with most costs expensed rather than capitalized. Capitalization is primarily limited to the payments business, due to regulatory requirements and the need to show asset build-out, and the AI side, often involving government-funded agencies and grants. The company emphasizes its efficiency in product development, with minimal capitalization for larger products.