Artemis Electricals Q1 FY2027: Lower revenue, better margins as project mix shifts

Artemis Electricals and Projects Limited opened FY2027 with a softer topline but steadier profitability. Consolidated revenue from operations in Q1 FY2027 was INR 16.27 crore, down 17.62 percent year on year from INR 19.75 crore. EBITDA was largely flat at INR 2.18 crore versus INR 2.21 crore in Q1 FY2026, but margins improved. EBITDA margin rose to 13.42 percent from 11.19 percent, and PAT margin improved to 7.81 percent from 6.64 percent.

The company attributed the revenue moderation to a strategic focus on higher-margin projects. In other words, Artemis appears to be trading volume for profitability in the near term, while trying to maintain execution discipline as an EPC and turnkey electrical infrastructure player.

What the quarter says about execution

The quarterly numbers show a familiar EPC pattern: revenue can move sharply depending on billing milestones, while cost control and project selection determine how much of that revenue translates into operating profit.

In Q1 FY2027, total expenditure fell 19.69 percent year on year to INR 14.09 crore, supporting margin expansion even as revenue declined. Operational expenses were INR 13.80 crore versus INR 17.22 crore in Q1 FY2026. Finance costs also reduced to INR 0.04 crore from INR 0.06 crore.

PAT came in at INR 1.27 crore, slightly lower than the INR 1.31 crore reported in Q1 FY2026. But profit before tax increased marginally to INR 1.89 crore from INR 1.85 crore. Higher tax expense in the quarter contributed to the small decline in PAT.

Business model and where demand is coming from

Artemis positions itself as a project-driven EPC and turnkey electrical infrastructure company, with capabilities spanning engineering design, procurement, on-site execution, system integration and commissioning. It also undertakes specialized MEP work.

The company highlights a business model transition from an earlier OEM and O&M orientation to an EPC model. The presentation frames the shift as a response to margin erosion and competition in the earlier model, and as a pathway to single-point accountability, better execution control and improved profitability potential.

On the demand side, the presentation points to multiple infrastructure tailwinds. These include government-led infrastructure spending, smart city and urban development, manufacturing-led buildouts, and rising demand for data centers and digital infrastructure that require specialized electrical systems and MEP installations.

The company lists its operating focus across government and public infrastructure projects, smart city works, hospitality and commercial real estate, residential townships, and industrial and institutional electrical infrastructure. The broader industry context in the deck cites growth expectations for global and Indian MEP markets, as well as India’s construction and EPCM ecosystem, but these are presented as external research indicators rather than company-specific guidance.

Balance sheet signals: liquidity up, working capital moving

For FY2026, the consolidated balance sheet shows total equity of INR 94.65 crore, with share capital of INR 25.10 crore and other equity of INR 69.55 crore. Total assets were INR 142.26 crore.

One notable movement is liquidity. Cash and cash equivalents rose to INR 14.41 crore in FY2026 from INR 1.35 crore in FY2025. At the same time, trade receivables increased to INR 39.57 crore from INR 24.05 crore, which can indicate higher outstanding billing or slower collections, a common working capital feature in EPC businesses. Trade payables also increased to INR 38.79 crore from INR 27.71 crore.

The balance sheet also shows a large capital work in progress of INR 56.54 crore in FY2026, broadly stable versus INR 55.55 crore in FY2025. The presentation does not specify the project-level composition of this CWIP, so it should be interpreted as an indicator of ongoing assets under development rather than a quantified growth trigger.

Borrowings appear contained in the reported periods, with long-term borrowings declining to INR 0.94 crore from INR 1.71 crore. Short-term borrowings were INR 0.77 crore, unchanged year on year.

Subsidiary SPV: electronics manufacturing cluster plan

The deck also outlines a subsidiary, Artemis Opto Electronic Technologies Pvt. Ltd., described as an SPV set up to develop an Electronics Manufacturing Cluster under the MeitY EMC 2.0 scheme. The company states land has been acquired and is ready for development. It also notes tie-ups with Central Electronics Limited, a Government of India enterprise, as a government collaborator, and Rajasthan Electronics Limited for setup support and nodalization.

This section is strategic in nature. The presentation does not provide capex amounts, revenue timelines, or financial contribution expectations from the SPV, so investors should treat it as a project outline rather than a near-term earnings driver based on the current document.

Key takeaways

Q1 FY2027 reflects a quarter where Artemis chose margin protection over topline expansion. Revenue fell, but EBITDA and PAT margins improved, supported by lower operating costs and reduced finance costs. The company’s positioning as an EPC and turnkey electrical and MEP execution partner aligns with long-cycle infrastructure demand, but the near-term story will still depend on project awards, execution pace, and working capital discipline.