Annu Projects Limited reported a net profit of ₹127 lakh for the quarter ended June 30, 2026 (Q1FY27). Revenue from operations clocked in at ₹1,991 lakh, marking the company's first standalone financial results since its listing.

The EPC-focused firm posted profit before tax of ₹224 lakh against total revenue of ₹2,037 lakh. The company was listed on NSE and BSE on September 2, 2026, following an IPO that raised ₹17,506.17 lakh. Consequently, comparative figures for the corresponding quarter ended June 30, 2025 are not presented in the statutory statement as quarterly reporting was not required pre-listing.

Financial performance overview

The company operates in the Engineering, Procurement and Construction (EPC) sector, which serves as its only reportable segment. Total expenses for the quarter amounted to ₹1,813 lakh. Key expense heads included construction expenses of ₹1,094 lakh and consumption of material worth ₹1,097 lakh. Employee benefits cost ₹149 lakh, while finance costs stood at ₹129 lakh.

Comparative management data

To aid investor comparison, management provided unaudited figures for the corresponding quarter ended June 30, 2025. These figures indicate a significant turnaround from a loss position to profitability.

Note: Q1FY26 figures are derived from books of accounts and have not been audited or subjected to limited review.

What the numbers show

A divergence exists between the strong revenue growth and the margin compression when viewed against the full-year context. While Q1FY27 revenue of ₹1,991 lakh is roughly 8% of the full-year FY26 revenue of ₹24,125 lakh, the net profit of ₹127 lakh represents only 3.8% of the full-year FY26 net profit of ₹3,303 lakh. This suggests that the first quarter's operational leverage is lower than the annual average, potentially due to higher relative fixed costs or project-specific execution phases typical in EPC businesses during the initial fiscal quarter.

Auditor and listing details

Suresh Chandra & Associates conducted a limited review of the financials and issued an unmodified conclusion. The auditor noted that comparative figures for the previous year were not presented because the company was not required to prepare quarterly results prior to its September 2, 2026 listing. The board meeting approving these results concluded on September 23, 2026.

Annu Projects has received a confirmed work order valued at Rs 5.04 crore from East Central Railway, Samastipur Division, for OFC laying and communication provision in Bihar.

Order in Financial Context

The Rs 5.04 crore order represents approximately 5.4% of the company's average quarterly revenue of Rs 93.60 crore. The total disclosed order book stands at Rs 5.04 crore (sum of the 1 orders disclosed across the last 3 fiscal quarters shown in the table below), resulting in a book-to-bill ratio of 0.05x based on trailing twelve-month revenue. Consequently, the current backlog covers 0.00 quarters of average quarterly revenue, indicating that the company relies heavily on new inflows to sustain its high revenue run-rate.

Company Order Track Record

The company has not disclosed any other significant orders in the preceding three fiscal quarters. This Rs 5.04 crore win is the sole addition to the visible order pipeline during this period, marking a shift from a period of zero disclosed inflows.

Execution and Revenue Quality

The company reported consolidated revenue of Rs 93.60 crore and net profit of Rs 13.80 crore in Q4FY25, with an operating profit margin (OPM) of 20.32%. The strong margin profile in the latest available quarter suggests efficient execution on existing contracts, although data for subsequent quarters is not provided in the input.

Revenue Growth: Order Wins Translating to Revenue

As Annu Projects has sustained order wins, with limited recent disclosures but consistent historical performance, its annual revenue has grown from Rs 155.40 crore in FY24 to Rs 182.40 crore in FY25, representing a YoY growth of +17.4% based on the latest annual data. Net profit also increased by +19.0% year-on-year to Rs 20.70 crore in FY25.

Working Capital and Execution Capacity

The company maintains a current ratio of 1.85x, indicating sufficient liquidity to manage short-term obligations. However, operating cashflow was negative at Rs -35.50 crore in FY25, suggesting that earnings are not yet converting efficiently into cash, likely due to stretched working capital cycles or receivables. Total Liabilities/Equity stands at 0.90x, reflecting a conservative balance sheet structure without excessive leverage.

What to Watch

• Execution rate: Monitor quarterly revenue run-rate against the low backlog coverage; acceleration is needed to maintain the current revenue trajectory.
• Cash conversion: Track improvements in operating cashflow to ensure that high accrual-based profits translate into actual cash generation.
• Client concentration: The single disclosed client accounts for 100% of the visible order book; diversification of awarding entities would reduce dependency risk.

Key Observations

• Backlog signal: Book-to-bill of 0.05x. At this level, the company requires immediate new order inflows to sustain its current revenue run-rate.
• Cash conversion: Operating cashflow of -Rs 35.50 crore in FY25; backlog is not converting to cash efficiently, and receivables or working capital cycle may be stretched.
• Valuation check (as of 22 Sep 2026): P/E of 0.0x against ROCE of 25.38%. At the time of this article, valuation was pricing in execution improvement not yet visible in return ratios.