Any current/future new fundraising through debt or equity?

Deep Industries plans a capital expenditure (capex) of more than INR 500 crores for the next financial year for awarded and expected projects. They intend to raise approximately INR 350 crores through Qualified Institutional Placement (QIP) equity. The balance of funding will come from internal accruals and possibly some debt. The company keeps open the option of liquidating investments and/or taking on debt based on timing and requirement. Management expects a need for substantial liquidity due to anticipated high order flows and potential acquisition opportunities in the coming 1-2 years. De

Any current/future capex/capital investment/strategic investment?

Capex Plan: Over INR 500 crores planned for the next financial year, covering awarded and anticipated projects. Production Enhancement Contract: Estimated capex of around INR 160 crores over two years. Onshore Drilling Assets: Capex ongoing for acquiring 3 rigs, with one additional rig planned next financial year; further rig additions depend on new awards. Offshore Services: Acquired an anchor-handling tug; plans to add more vessels (diving support, platform supply, tugs) for charter business. Strategic Acquisition: Exploring acquisition opportunities in the industry; funds from QIP and liqui

Future growth expectations in sales/revenue/volumes?

Deep Industries Limited expects to achieve around INR 800 crores in revenue by FY '26, driven by full-year revenue from Dolphin's Barge, growth in existing business, and about 6 months revenue from production enhancement contracts. The company is targeting over 30% year-on-year growth for the next 3 years based on the existing order book and anticipated new orders. Organic growth is projected at approximately 18-19% year-on-year in traditional services. Incremental production from production enhancement contracts is expected to contribute significant revenue from FY '27 onwards, potentia

Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects growth of more than 30% year-on-year in the next 3 years based on existing order book and anticipated new orders. Organic growth is projected around 18-19% year-on-year in traditional services including natural gas and integrated projects. Production enhancement contract is anticipated to contribute more than INR 100 crores revenue from FY '27 onwards. EBITDA margins are expected to be maintained in the range of 45% to 47%. The company is optimistic about the new production enhancement vertical becoming one of the largest growth drivers. Revenue guidance for FY '26 is INR 8

Current/ Expected Orderbook/ Pending Orders?

Current order book stands at INR 2,701 crores, reflecting a 125% year-on-year growth (Page 4). The company has an active bidding pipeline of around INR 700 crores to INR 750 crores expected to convert in the next 3 to 6 months (Page 9). Typical success rate on bids is about 50%, varying across different verticals (Page 11). Anticipated production enhancement contracts (PECs) with expected orders coming out within a year as per company’s guesstimate; more activity expected from FY '26 onwards (Pages 6, 12). Additional orders in offshore tender segments are being evaluated and bid for, including

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Deep Industries LtdQ4 FY26Oil

Deep Industries Ltd Q4 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹456P/E: 7.7Market Cap: ₹2.9K CrSector: Oil

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Deep Industries Limited expects to achieve around INR 800 crores in revenue by FY '26, driven by full-year revenue from Dolphin's Barge, growth in existing business, and about 6 months revenue from production enhancement contracts.
→The company is targeting over 30% year-on-year growth for the next 3 years based on the existing order book and anticipated new orders.
→Organic growth is projected at approximately 18-19% year-on-year in traditional services.
→Incremental production from production enhancement contracts is expected to contribute significant revenue from FY '27 onwards, potentially exceeding INR 100 crores.
→The company is optimistic about securing new Production Enhancement Contracts (PECs) within a year, supporting further growth.
→They anticipate consolidated growth of more than 30% based on current orders and upcoming opportunities.

Margin guidance

Category 3

→The company expects growth of more than 30% year-on-year in the next 3 years based on existing order book and anticipated new orders.
→Organic growth is projected around 18-19% year-on-year in traditional services including natural gas and integrated projects.
→Production enhancement contract is anticipated to contribute more than INR 100 crores revenue from FY '27 onwards.
→EBITDA margins are expected to be maintained in the range of 45% to 47%.
→The company is optimistic about the new production enhancement vertical becoming one of the largest growth drivers.
→Revenue guidance for FY '26 is INR 800 crores, supported by full-year revenue from Dolphin's Barge and around six months' revenue from production enhancement.
→The order book has grown 125% year-on-year to INR 2,701 crores, showing strong future revenue visibility.

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Fundraise plans

Yes

→Deep Industries plans a capital expenditure (capex) of more than INR 500 crores for the next financial year for awarded and expected projects.
→They intend to raise approximately INR 350 crores through Qualified Institutional Placement (QIP) equity.
→The balance of funding will come from internal accruals and possibly some debt.
→The company keeps open the option of liquidating investments and/or taking on debt based on timing and requirement.
→Management expects a need for substantial liquidity due to anticipated high order flows and potential acquisition opportunities in the coming 1-2 years.
→Despite current net debt-free status, the company is poised to raise debt as needed for growth and liquidity.
→The QIP is intended both for capex and acquisition opportunities, with fund usage and timelines depending on when needs arise.

Order book

Yes

→Current order book stands at INR 2,701 crores, reflecting a 125% year-on-year growth (Page 4).
→The company has an active bidding pipeline of around INR 700 crores to INR 750 crores expected to convert in the next 3 to 6 months (Page 9).
→Typical success rate on bids is about 50%, varying across different verticals (Page 11).
→Anticipated production enhancement contracts (PECs) with expected orders coming out within a year as per company’s guesstimate; more activity expected from FY '26 onwards (Pages 6, 12).
→Additional orders in offshore tender segments are being evaluated and bid for, including those related to JV with Euro Gas Systems, although no awards yet (Pages 8, 10).
→Expansion in onshore drilling rigs planned depending on awards, with 3 rigs acquisition in progress and adding one more rig in the coming financial year (Pages 14-15).

Capex plans

Yes

→Capex Plan: Over INR 500 crores planned for the next financial year, covering awarded and anticipated projects.
→Production Enhancement Contract: Estimated capex of around INR 160 crores over two years.
→Onshore Drilling Assets: Capex ongoing for acquiring 3 rigs, with one additional rig planned next financial year; further rig additions depend on new awards.
→Offshore Services: Acquired an anchor-handling tug; plans to add more vessels (diving support, platform supply, tugs) for charter business.
→Strategic Acquisition: Exploring acquisition opportunities in the industry; funds from QIP and liquidity kept to capitalize on potential purchases.
→Funding Sources: Planned INR 350 crores via QIP; balance from internal accruals, liquidating investments, and possible debt.
→Capex for new rigs, including 2,000-3,000 horsepower rigs, under evaluation based on market demand and financial capacity.

How does Deep Industries Ltd rank vs peers in Oil?

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1Deep Industries Ltd

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