AISL - ANI Integrated

📊 NSE: AISL 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 18:20

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 21.3% YoY to INR 227.46 Cr in FY25. Standalone revenue for the Deputation of Manpower segment grew 14.2% YoY to INR 118.43 Cr for H1 FY25 compared to INR 103.73 Cr in H1 FY24. Operation & Maintenance segment revenue stood at INR 1.75 Cr, and Projects & Consultancy at INR 2.77 Cr for FY25.

Geographic Revenue Split

The company is aggressively expanding its footprint in overseas markets including Africa, the Middle East, and Southeast Asia. While specific percentage splits are not disclosed, management stated that overseas operations provide significantly higher margins compared to domestic business.

Profitability Margins

Consolidated PAT margin improved by 155 basis points to 3.17% in Q1 FY25. Historical Net Profit Margin (NPM) was 3.81% in FY22, while Operating Profit Margin (OPM) was 5.52% in the same period.

EBITDA Margin

Consolidated EBITDA doubled to INR 2.88 Cr in Q1 FY25, representing a 100% YoY increase. Standalone EBITDA increased by 59.24% to INR 2.33 Cr in the same quarter.

Capital Expenditure

The company invested INR 1.20 Cr in the purchase of fixed assets during the half-year ended September 30, 2025. Total tangible assets stood at INR 3.44 Cr as of September 2025.

Credit Rating & Borrowing

The company's credit rating was migrated to 'CRISIL B/Stable/CRISIL A4' from 'Issuer Not Cooperating' status. Interest costs for FY25 were INR 2.91 Cr on a total borrowing base of approximately INR 22.21 Cr (INR 21.41 Cr short-term and INR 0.79 Cr long-term).

⚙️ Operational Drivers

Raw Materials

As a service-oriented firm, the primary 'raw material' is skilled manpower and technical personnel, which accounts for the bulk of operational expenses.

Import Sources

Not applicable as the company provides manpower and engineering services rather than manufacturing goods.

Key Suppliers

Not applicable; the company relies on a database of technical professionals and recruitment channels rather than material suppliers.

Capacity Expansion

The company is expanding its service capacity by entering the Detailed Engineering vertical and establishing new subsidiaries in Africa and the Middle East to handle a growing order pipeline.

Raw Material Costs

Employee benefit expenses and personnel costs are the primary drivers, though specific percentage of revenue is not explicitly broken down in the provided segments.

Manufacturing Efficiency

Not applicable; efficiency is measured by the 80% repeat customer rate and the ability to maintain a 25-30% historical growth strike rate.

Logistics & Distribution

Not applicable; services are delivered via personnel deputation and on-site project management.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be achieved through aggressive expansion in Africa and the Middle East via local subsidiaries, focusing on high-margin domestic sectors like Pharmaceuticals and Food, and scaling the new Detailed Engineering vertical. The company leverages an 80% repeat customer rate to ensure revenue stability.

Products & Services

Manpower recruitment and supply, technical inspection and certification, operations and maintenance (O&M), erection, commissioning, installation, and detailed engineering services.

Brand Portfolio

ANI Integrated Services Limited (AISL).

New Products/Services

Detailed Engineering vertical, recently launched to diversify service offerings and enhance technological integration.

Market Expansion

Establishing a stronger presence in Africa and the Middle East with dedicated subsidiaries to capture a robust 2-3 year order pipeline.

🌍 External Factors

Industry Trends

The industry is seeing robust growth in technical inspection and specialized manpower outsourcing. AISL is positioning itself by moving from general manpower to specialized engineering and certification services.

Competitive Landscape

Competes with both domestic manpower agencies and international technical service firms in key global markets.

Competitive Moat

The moat is built on a high repeat customer rate (80%) and a specialized service design that allows for better competition against international firms in domestic markets. This is sustainable due to long-term contract structures.

Macro Economic Sensitivity

Highly sensitive to industrial CAPEX and maintenance spending in the energy, pharma, and infrastructure sectors across India and the Middle East.

Consumer Behavior

Industrial clients are increasingly outsourcing non-core technical functions like O&M and inspection to specialized third-party providers to improve efficiency.

Geopolitical Risks

Exposure to regulatory and economic shifts in Middle Eastern and African markets; historical revenue was impacted by pandemic-related disruptions in Southeast Asia.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to labor laws, technical certification standards, and revenue recognition norms (Ind AS/Accounting Standards) for ongoing contracts.

Taxation Policy Impact

The company paid a current tax of INR 37 lakhs for FY25 on a PBT of INR 10.39 Cr, representing an effective current tax rate of approximately 3.5%.

Legal Contingencies

The audit report highlights revenue recognition of ongoing and unbilled contracts as a 'Key Audit Matter' involving significant judgment, but no specific values for pending litigation were disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the continued loss-making nature of the Project division and the management of the 60-90 day milestone payment cycle which impacts cash flow.