Are Artefact Projects Ltd latest results good or bad?

Artefact Projects Ltd's latest financial results indicate a challenging operational environment characterized by significant volatility in both revenue and profitability. In the quarter ending December 2025, the company reported a net sales figure of ₹6.74 crores, reflecting a quarter-on-quarter decline of 24.86% compared to the previous quarter's growth of 305.88%. This sharp drop underscores ongoing revenue challenges, which have been a consistent trend for the company, as evidenced by its negative 5-year sales CAGR of 2.95%. The standalone net profit for the same quarter was ₹1.68 crores, showing a modest increase of 0.60% from the prior quarter. However, this slight growth comes after a substantial increase of 63.73% in the previous quarter, indicating a slowdown in profitability momentum. The operating profit margin, excluding other income, stood at 23.44%, which is a positive development compared to the previous quarter's margin of 19.18%. This suggests some improvement in operational efficiency, although the overall profitability remains under pressure. The company's average return on equity (ROE) of 8.26% and return on capital employed (ROCE) of 5.98% point to persistent issues with capital efficiency and operational effectiveness. Furthermore, the absence of institutional interest in the company's shares raises concerns about its attractiveness to professional investors. Overall, Artefact Projects Ltd's recent results reflect a complex mix of operational volatility and structural challenges, leading to an adjustment in its evaluation. The company continues to face significant hurdles in stabilizing its revenue and profitability, which will require focused management efforts to address.