Any current/future new fundraising through debt or equity?

The company has decided **not to proceed with the earlier planned QIP (Qualified Institutional Placement)** given the drastic improvement in cash flows. For new capex, including a new 2,000 HP drilling rig estimated at around INR 100-120 crores, the funding plan includes **internal accruals and debt**. No mention of any immediate large equity fundraising or acquisitions akin to Dolphin Offshore at present. The company is focusing on capex around INR 150 crores primarily on rigs and gas processing units, expected to be funded internally with some debt if needed.

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

Capex of around INR150 crores planned primarily for rigs and gas processing units, targeting orders already bid for. Additional capex of around INR300 crores expected this year under PEC, rig segment, and gas processing. Potential increased capex if new offshore orders are secured. Plan to acquire higher capacity drilling rigs (around 2,000 horsepower) with estimated capex of INR100-120 crores, to be funded through internal accruals and debt, likely via JV. Expansion of Dolphin Offshore fleet with possible addition of more assets. Exploration into green hydrogen vertical, recently entered via

Future growth expectations in sales/revenue/volumes?

Deep Industries expects a revenue growth of 25% to 30% year-on-year for FY27, aiming for around INR 1,100 crores. Growth is driven by new orders expected in the first half of FY27, including major contracts awaiting award. The company anticipates maintaining an EBITDA margin of approximately 44%-45%. Over the next 3 to 5 years, the management is optimistic about significant growth, possibly doubling revenues due to increased drilling activities both onshore and offshore. Multiple business verticals—including production enhancement contracts (PEC), drilling, and gas processing—are all expected

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

Deep Industries expects a revenue growth of around 25% to 30% year-on-year for FY27 and beyond. EBITDA margins are projected to be maintained around 44%-45% with slight variations of 1%-2%. The company is optimistic about continuing the growth trajectory for at least 3 to 5 years, potentially doubling in size. Earnings growth is expected alongside revenue owing to increased capacity in drilling rigs, gas processing units, and production enhancement contracts (PEC). PAT for FY27 is anticipated to be around INR 400 crores plus, with a strong growth outlook into FY28. New rig deployments and expa

Current/ Expected Orderbook/ Pending Orders?

Current order book stands around INR 3,000 crores, stable for the past 4-5 quarters. Out of this, more than INR 800 crores is expected to be executed in FY27. The order book includes a 15-year contract and other contracts with an average life of 2.5 years. The company is optimistic of adding new orders, especially from major contracts likely to be awarded soon. Bidding pipeline currently stands close to INR 500-600 crores, excluding recent PEC tenders. New orders from PEC and higher capacity drilling rigs are expected to enhance order inflow. Management aims to improve order book details with

Deep Industries LtdQ1 FY27

Deep Industries Ltd Q1 FY27 Earnings Call Analysis

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

Price: ₹669P/E: 9.9Market Cap: ₹4.1K Cr

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Order

Capex

Yes

1 of 5 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→Deep Industries expects a revenue growth of 25% to 30% year-on-year for FY27, aiming for around INR 1,100 crores.
→Growth is driven by new orders expected in the first half of FY27, including major contracts awaiting award.
→The company anticipates maintaining an EBITDA margin of approximately 44%-45%.
→Over the next 3 to 5 years, the management is optimistic about significant growth, possibly doubling revenues due to increased drilling activities both onshore and offshore.
→Multiple business verticals—including production enhancement contracts (PEC), drilling, and gas processing—are all expected to grow symmetrically.
→Capex of around INR 150 crores is planned for rigs and gas processing units to support this growth.
→Market opportunities are expanding with government support and increasing demand for oil, gas, and related services.
→Offshore segment expansion is targeted with a cautious and selective approach.

Margin guidance

Category 3

→Deep Industries expects a revenue growth of around 25% to 30% year-on-year for FY27 and beyond.
→EBITDA margins are projected to be maintained around 44%-45% with slight variations of 1%-2%.
→The company is optimistic about continuing the growth trajectory for at least 3 to 5 years, potentially doubling in size.
→Earnings growth is expected alongside revenue owing to increased capacity in drilling rigs, gas processing units, and production enhancement contracts (PEC).
→PAT for FY27 is anticipated to be around INR 400 crores plus, with a strong growth outlook into FY28.
→New rig deployments and expanded order book inflows support revenue and profit expansion.
→Offshore and onshore oil exploration is seeing equal push, broadening business opportunities.
→Return on Investment (ROI) for new capex is targeted to be above 20%.

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Fundraise plans

→The company has decided **not to proceed with the earlier planned QIP (Qualified Institutional Placement)** given the drastic improvement in cash flows.
→For new capex, including a new 2,000 HP drilling rig estimated at around INR 100-120 crores, the funding plan includes **internal accruals and debt**.
→No mention of any immediate large equity fundraising or acquisitions akin to Dolphin Offshore at present.
→The company is focusing on capex around INR 150 crores primarily on rigs and gas processing units, expected to be funded internally with some debt if needed.

Order book

→Current order book stands around INR 3,000 crores, stable for the past 4-5 quarters.
→Out of this, more than INR 800 crores is expected to be executed in FY27.
→The order book includes a 15-year contract and other contracts with an average life of 2.5 years.
→The company is optimistic of adding new orders, especially from major contracts likely to be awarded soon.
→Bidding pipeline currently stands close to INR 500-600 crores, excluding recent PEC tenders.
→New orders from PEC and higher capacity drilling rigs are expected to enhance order inflow.
→Management aims to improve order book details with detailed footnotes for investors in future disclosures.
→The company is seeing increased bidding activity and expects order book to grow reflecting sector demand.

Capex plans

Yes

→Capex of around INR150 crores planned primarily for rigs and gas processing units, targeting orders already bid for.
→Additional capex of around INR300 crores expected this year under PEC, rig segment, and gas processing.
→Potential increased capex if new offshore orders are secured.
→Plan to acquire higher capacity drilling rigs (around 2,000 horsepower) with estimated capex of INR100-120 crores, to be funded through internal accruals and debt, likely via JV.
→Expansion of Dolphin Offshore fleet with possible addition of more assets.
→Exploration into green hydrogen vertical, recently entered via MOU; investment plans to be clarified in 2-3 quarters.
→No plans for large acquisitions like Dolphin, focusing mainly on organic capex and selective offshore expansion.

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