DEE Development Engineers Ltd

- The current CAPEX cycle is nearing completion, with 95%-98% of planned CAPEX expected to be done by March of this financial year. - Future CAPEX will mainly be for maintenance purposes, estimated at Rs. 10-15 crore annually. - A new seamless pipe plant with an annual capacity of 7,000 tonnes is nearing commissioning, with a CAPEX of about Rs. 90 crore (Rs. 22.5 crore funded via internal accruals). - At optimal utilization, the new plant is expected to generate annual revenue around Rs. 450 crore and an IRR of 30%-35%. - Strategic focus includes diversification into nuclear, semiconductor, and pharmaceutical sectors within piping manufacturing solutions. - The power generation division is pivoting towards biomass pellet manufacturing, planning an InvIT structure to ring-fence capital and enhance sustainability. - No major new term loans or debt expected as future funding will come from internal cash flows.

- Dee Development Engineers targets a 3x revenue growth over three to five years. - Major growth driver is the new Anjar expansion plant, focusing on oil & gas and seamless pipe manufacturing, expected to generate significant additional revenue. - The Anjar facility is strategically located near a port, reducing logistics costs and enhancing operational efficiency. - The new seamless pipe plant, nearing commissioning with a Rs. 90 crore CAPEX, is expected to have an annual capacity of 7,000 tonnes and generate peak annual revenue of around Rs. 450 crore. - The company anticipates improving asset turns, stronger cash generation, and better return ratios as growth CAPEX completes. - Demand visibility remains strong in core segments, especially power, oil & gas, and process industries both domestically and internationally. - Focus on diversification into nuclear, semiconductor, and pharma sectors to sustain long-term growth. - Order book expected to grow from around Rs. 1300-1400 crore (as of Dec ’25) to Rs. 2000 crore by FY’27, funded through internal cash accruals without needing additional debt.

- Dee Development Engineers targets 3x revenue growth over 3-5 years driven by: - Anjar plant expansion focusing on oil & gas seamless pipe manufacturing. - Improved asset turns and stronger cash generation post CAPEX cycle completion. - Operating EBITDA margin expected in the range of 18%-20% going forward. - Core business EBITDA for 9M FY26 up 175.5% YoY, excluding losses from power division. - Power division losses (~Rs. 36 crore in FY26) expected to be eliminated in FY27 after pellet plant commissioning, resulting in EBITDA neutrality. - With CAPEX largely completed, focus on capital efficiency and reducing debt with annual repayment of around Rs. 40 crore expected. - Seamless pipe plant commissioning anticipated to add Rs. 450 crore annual revenue at 30%-35% IRR once fully operational. - Overall PAT for 9M FY26 showed a strong YoY growth of 308.2%, indicating improving profitability trends.

- As of 31st December 2025, the order book stands at approximately Rs. 1300 crore. - An additional Rs. 300 crore to Rs. 400 crore worth of orders are currently in the pipeline. - This sets an expected order book of around Rs. 1300 to 1400 crore by March. - The company anticipates reaching an order book of Rs. 2000 crore by FY’27 through internal cash flows without requiring new debt. - New orders are progressing well, with many bids declared L1 in the current quarter, totaling approximately Rs. 300 to 400 crore. - There's strong multi-year revenue visibility supported by a robust order book. - About 40%-60% of domestic revenue in the coming year is expected from PSU orders, exports are entirely from private players.

- No new debt is anticipated as the major CAPEX cycle is nearing completion, with 95-98% of CAPEX expected to be done by March of the current financial year. - Future CAPEX will primarily be for maintenance purposes only, estimated at Rs. 10-15 crore annually. - The company expects to reduce debt by repaying around Rs. 40 crore each year, which should lower interest costs. - Improved cash flows are expected from H1 FY'27 onwards, aiding in debt reduction. - In case of a sudden large order influx (e.g., Rs. 1,000 crore), external funding might be considered, but normal progress will be supported through internal accruals. - Previous plans for foreign fundraising for incremental working capital are not currently required if orders come progressively over the year. - Overall, growth funding will come from improved cash flow without significant new debt or equity issuance.