💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations decreased 11.37% YoY to INR 113.55 Cr (FY25) from INR 128.12 Cr (FY24). The sale of goods segment specifically contributed INR 58.80 Cr, representing 51.8% of total revenue.

Geographic Revenue Split

Not explicitly detailed by percentage, but the company operates significant project sites at GRSE in Kolkata and the P2 Project site.

Profitability Margins

Net Profit Margin (PAT %) declined from 4.70% in FY24 to 2.62% in FY25. This was primarily driven by a shift from a tax credit of INR 3.75 Cr in FY24 to a tax expense of INR 1.31 Cr in FY25, despite an increase in Profit Before Tax (PBT) from INR 2.30 Cr to INR 4.80 Cr (+108.26%).

EBITDA Margin

EBITDA margin improved from 11.37% to 12.76% (+139 bps) YoY. Absolute EBITDA grew 15.94% to INR 16.97 Cr, indicating improved core operational efficiency.

Capital Expenditure

Not explicitly stated as a total figure, but depreciation and amortization increased 17.75% YoY to INR 2.40 Cr, reflecting ongoing investment in Property, Plant, and Equipment.

Credit Rating & Borrowing

Finance charges decreased 5.07% YoY to INR 9.78 Cr, which represents 7.35% of total income.

⚙️ Operational Drivers

Raw Materials

Input costs (unspecified materials) and skilled labor/wages are identified as the primary cost drivers.

Raw Material Costs

Input cost pressures and rising wages are cited as significant risks. The company utilizes a Project Risk Management (PRM) framework to evaluate these costs before making financial commitments.

Manufacturing Efficiency

The company achieved 4 million safe man-hours at the GRSE site in Kolkata and 1.5 million safe man-hours at the P2 Project site, with zero LTIs and fatalities during the year.

📈 Strategic Growth

Growth Strategy

Growth is targeted through a multi-layered approach: the PRM framework evaluates risks against returns before bidding, the contracts & commercial cell identifies cost/timeline risks, and the Operations/Business Development teams exercise prudence in bidding processes.

Products & Services

Engineering and construction project execution services (e.g., GRSE site, P2 site) and manufactured goods (INR 58.80 Cr).

Brand Portfolio

Artson Limited (Formerly known as Artson Engineering Limited).

🌍 External Factors

Industry Trends

The industry is evolving toward higher safety and environmental standards. Artson is positioning itself through its Corporate EHSQ Policy and achieving millions of safe man-hours at project sites.

Competitive Moat

The moat is based on specialized engineering project execution capabilities and a robust internal control system commensurate with the size and complexity of operations.

Macro Economic Sensitivity

Highly sensitive to social and economic scenarios, which may cause actual performance to differ materially from forward-looking statements.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, Ind AS 115 for revenue recognition, and Section 197 for managerial remuneration.

Environmental Compliance

Maintains a Corporate Environment, Health, Safety and Quality (EHSQ) Policy; achieved zero LTIs and fatalities in FY25.

Taxation Policy Impact

The company incurred a tax expense of INR 1.31 Cr in FY25 compared to a tax credit of INR 3.75 Cr in FY24.

Legal Contingencies

Pending litigations are disclosed in Note 41. The company has also made provisions for material foreseeable losses on long-term contracts under Note 18 as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Input cost pressures and wage inflation (potential margin compression), skilled manpower shortages (potential project delays), and contract execution delays (potential impact on cash flows).

Geographic Concentration Risk

Significant operational concentration at the GRSE site in Kolkata and the P2 Project site.