Demand Environment Remains Very Strong: Aurionpro CEO Ashish Rai

Aurionpro Solutions reported a revenue of Rs 278 crore in Q2 FY25, seeing a growth of 32 per cent year-on-year (YoY) and a 6 per cent increase quarter-on-quarter (QoQ). The company’s EBITDA margin stood at 20.3 per cent, a slight decline, while the PAT margin was recorded at 16.4 per cent. The profit after tax (PAT) for the quarter came in at Rs 46 crore, an increase of 34 per cent YoY and a 2 per cent rise QoQ.

The company has reaffirmed its full-year growth guidance, projecting continued growth of over 30 per cent.

Looking at the first half of FY25, Aurionpro Solutions experienced strong growth in revenue from operations, which reached Rs 540 crore, a 32 per cent increase compared to Rs 410 crore in H1 FY24. Revenue from software services contributed Rs 372 crore, while revenue from equipment and product licenses accounted for Rs 168 crore. The Banking and Fintech segment performed particularly well, reporting a remarkable growth of 51 per cent YoY, reaching Rs 305 crore in H1 FY25. Meanwhile, the Technology Innovation Group (TIG) recorded a growth of 13 per cent YoY, amounting to Rs 235 crore.

In an interview with BW Businessworld, Aurionpro Solutions’ Group CEO Ashish Rai discusses the company’s Q2 results, stressing upon the demand environment, the necessity for safe scaling and the recalibration of the Technology Innovation Group (TIG) segment as the company looks towards future growth. Excerpts:

What is your reading of the Q2 results?

It was a solid quarter. We have been growing at 34-35 per cent now for four years now. The demand environment continues to remain very strong. So, it is a question of how can we kind of safely scale the enterprise to keep capitalising on the demand. That is what we have been focused on. Each of the segments has a very strong demand environment. Banking grew 51 per cent and it has been growing very strongly thanks to the new product build outs that we had over the last couple of years, as well as expansion into Middle East, into Southeast Asia and more.

But the TIG business grew slowly…

TIG business is growing a little bit slowly. It was growing very strongly the last two years. This year we are sort of recalibrating the parts of that business for better economics and better cash flows. So, the growth rate is slow. But even within TIG, the transit payment side is growing very strongly. The data centre side is going very strongly. It is the smart cities and the government side, which we have slowed down to work on a few things. I think overall it was a solid quarter, on track, in terms of what we guided, at 30 per cent plus. We said we'll keep a EBITDA down between 20-22 per cent, which we did. And PAT margins ats 15-16 per cent.

How has the demand environment changed over the past year, and what does the outlook look like?

Over the past year, demand has strengthened slightly. Four years ago, we pivoted from a diversified IT services business to a global products and platforms player, focusing on long-term demand areas. We identified key sectors with contested global leadership and strong five- to seven-year growth potential. These include corporate banking transformation, where banks are shifting to specialised products, and transit payments, which we expect to transition from closed to open loop systems over the next decade.

The data centre space in India is also seeing growth, and we’ve built skills to capitalise on this. Enterprise AI is another major focus for us this year, with strong demand uptake over the past year. Many of these areas have long demand runways due to fundamental technological shifts, such as the transition from closed to open loop systems. We have heavily invested in making our application stacks AI-native, and the demand in these segments remains robust and growing.

What’s driving growth in BFSI?

The BFSI sector is growing rapidly, with banking seeing 50 per cent growth, driven by high demand for technology transformation in areas like transaction banking and lending. Banks are moving away from custom software to adopt cutting-edge products, especially as AI-based decision-making becomes more important. However, we are carefully calibrating growth to avoid the risks of expanding too fast, as product delivery and customer success are critical. The outlook remains strong, with continued investments in AI and mature products.

Tell us about your vision for TIG.

The TIG group is divided into three segments, with transit payments being a key growth driver. We have one of the most integrated end-to-end solutions in this space and have seen great success in the Americas, particularly in California, Central America, Ecuador, and Mexico, where we are transforming payment systems. We are now expanding into Europe and Australia and expect continued strong international growth in this segment. The second segment, data centres, is seeing strong demand, with a robust design team and partnerships driving growth. However, the third segment, smart cities and government projects, has slowed down. We are focusing on optimising margins and cash flow in that area, which is why growth in this segment has been tempered.

We are slowing that business down right now, trying to recalibrate it to see whether we can improve the economics of the business. While TIG is currently growing at 14-15 per cent, this is expected to be temporary. Once we reset the base this year, growth is expected to accelerate next year. The other two segments—transit payments and data centres—continue to grow strongly.

What are your plans for the Government vertical?

We’ve developed strong IP in the government sector, particularly in India, and we see long-term value in partnering to build impactful products that drive digitalization. While we are optimistic about this space, in the short term, our focus is on building the right technology to support future growth. Areas like smart cities, surveillance, and safe cities require significant investment, and product development takes time and capital. However, we are confident in our ability to partner with government institutions, especially at the central level, to support initiatives that further India’s digitisation.

H2 is generally better than H1 for Aurionpro. Why have you not raised the guidance?

My philosophy is to build a global, IP-led products and platforms player from India, which has not seen many at this scale before. It is a long-term vision—15 to 20 years—where we aim for sustainable growth, around 30-35 per cent annually, rather than chasing rapid expansion. In the product business, scaling too fast can harm delivery and reputation, which we prioritise. While some segments like banking have grown decently, we aim to carefully balance growth, focusing on building a robust, global tech enterprise for the long term.