Artefact Projects has scheduled its 38th Annual General Meeting (AGM) for Thursday, September 24, 2026. The meeting will convene at 11:30 am at the company’s registered office in Nagpur to adopt the audited financial statements for FY26.

Financial Performance

Artefact Projects reported total income of ₹3,614.04 lakh for the fiscal year ended March 31, 2026, an increase from ₹3,392.26 lakh in FY25. Despite the revenue growth, Profit After Tax (PAT) declined to ₹522.61 lakh from ₹743.03 lakh in the previous year. Earnings Per Share (EPS) stood at ₹7.29.

The decline in profitability was driven by upfront mobilization costs for 13 new projects and a non-recurring write-off of Work-in-Progress (WIP) bills pending approval for over 18 months. Operating and administrative expenses rose significantly due to site mobilization and strategic salary revisions aligned with the New Labour Code.

Order Book and Outlook

The company maintains a substantial order book of approximately ₹338 crore, with ₹214 crore undertaken as Lead Consultant. Management highlighted steady project execution cycles and diversification into railway sectors and urban infrastructure. The Board did not recommend a dividend for FY26 to meet working capital needs.

Meeting Agenda

Shareholders will consider the adoption of the audited financial statements for the fiscal year ended March 31, 2026. The ordinary business also includes the reappointment of Mrs. Ankita Shah as a director. She retires by rotation and is eligible for re-election.

Mrs. Shah serves as a non-executive director with expertise in architectural design and infrastructure project management. She holds no equity shares in the company and drew no remuneration in the preceding period.

Voting Procedures

The company is facilitating remote e-voting through Central Depository Services (India) Limited (CDSL). The voting window opens on Monday, September 21, 2026, at 9:00 am and closes on Wednesday, September 23, 2026, at 5:00 pm.

Members holding shares as of the cut-off date can cast votes electronically. Those who vote remotely will not be eligible to vote again at the physical meeting venue. The register of members and share transfer books will remain closed from September 18, 2026, through September 24, 2026.

Artefact Projects reported a net profit of ₹94.30 Lakhs for the first quarter of FY27 (Q1FY27), ending June 30, 2026. This represents a 9.5% sequential increase from the ₹86.14 Lakhs posted in the fourth quarter of FY26 but a 7.4% decline year-on-year from the ₹101.81 Lakhs recorded in Q1FY26. The Board of Directors approved the unaudited financial results on August 11, 2026, following a limited review by statutory auditors Naresh Patadia & Company.

The most significant operational development this quarter was a change in accounting policy regarding revenue recognition. Artefact Projects now accounts for receipts on an accrual basis only after receiving formal approval and acceptance from clients, primarily the National Highways Authority of India (NHA) and Public Works Department (PWD). Consequently, while services billed amounted to ₹396.21 Lakhs, proforma invoices worth ₹517.82 Lakhs remained unbilled and were classified as work in progress. This conservative approach reduced reported sales by ₹517.82 Lakhs and profits by ₹213.19 Lakhs compared to prior recognition methods.

Financial Performance Overview

Revenue from operations (net of GST) stood at ₹316.71 Lakhs, down 7.5% from ₹221.14 Lakhs in the corresponding quarter of the previous year? No, it is up from ₹221.14 Lakhs in Q1FY26. Wait, the table shows:

• Q1FY27 (Jun 2026): 316.71 Lakhs
• Q1FY26 (Jun 2025): 221.14 Lakhs
• Q4FY26 (Mar 2026): 1,432.55 Lakhs

Correction: Revenue rose 43.2% year-on-year from ₹221.14 Lakhs in Q1FY26 to ₹316.71 Lakhs in Q1FY27. However, it dropped sharply from the peak of ₹1,432.55 Lakhs in the preceding quarter. Total income from operations was ₹380.73 Lakhs, supported by other income of ₹64.02 Lakhs.

Expenses totaled ₹254.12 Lakhs, driven primarily by employee costs of ₹295.11 Lakhs and project site expenses of ₹121.21 Lakhs. Notably, the "Change in Inventories of Work in Progress" showed a credit of ₹(304.63) Lakhs, reflecting the addition of unbilled work to inventory rather than expensing it immediately. Retainers and consultancy fees decreased significantly to ₹58.92 Lakhs from ₹262.57 Lakhs in the previous quarter.

What the Numbers Show

The divergence between billed revenue (₹396.21 Lakhs) and recognized revenue (₹316.71 Lakhs) highlights the impact of client approval delays on cash flow visibility. While the company maintains that investments of ₹5.01 Lakhs in Shri Ram Urban Co-operative Bank Ltd and ₹3.51 Lakhs in Shri Anand Nagari Sahakari Bank Ltd are fully recoverable without impairment provisions, the shift to accrual-based recognition upon client acceptance introduces a lag in top-line reporting. This suggests that underlying demand may be stronger than the P&L indicates, but liquidity realization is tied to bureaucratic clearance cycles from government clients like NHA and PWD.

The statutory auditors, Naresh Patadia & Company, issued an unmodified review report under Standard on Review Engagements (SRE) 2410. The results were prepared in accordance with IND AS 34 and Regulation 33 of the SEBI Listing Regulations. The trading window remains closed for 48 hours from the publication of these results.