Deep Industries Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Deep Industries Ltd filed with BSE on 03 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Deep Industries reported Q1 FY27 revenue of Rs 278.92 crore, up 40% year-on-year, with EBITDA of Rs 131.8 crore at a 43.6% margin and net profit of Rs 89.14 crore, up 44.5% year-on-year. Management attributed growth to contributions from the Dolphin offshore subsidiary, Dubai subsidiaries, and core gas compression and drilling operations, while the ONGC production enhancement contract at Mori faced a delay following an incident at one well. The order book stood at Rs 3,047 crore as of June 30, and management discussed plans for higher-capacity drilling rigs, offshore fleet expansion, and new adjacencies such as green hydrogen and geothermal energy.
Numbers mentioned
Revenue: Rs 278.92 crores (Q1 FY27)
p. 7
“Revenue for quarter 1 FY27 rose to INR278.92 crores, up by 40% year-on-year.”
Rohan Shah, page 7 of the filed PDF · View the filing
EBITDA: Rs 131.8 crores (Q1 FY27)
p. 7
“Operational efficiencies have helped us post 38.7% Y-o-Y growth in EBITDA to INR131.8 crores in FY21 -- in Q1 FY27 with EBITDA margin of 43.6%.”
Rohan Shah, page 7 of the filed PDF · View the filing
Net profit: Rs 89.14 crores (Q1 FY27)
p. 7
“Net profit for the first quarter stood at INR89.14 crores, up by 44.5% year-on-year.”
Rohan Shah, page 7 of the filed PDF · View the filing
Order book: Rs 3,047 crores (As on June 30, 2026)
p. 8
“As on June 30, our order book stood at INR3,047 crores.”
Rohan Shah, page 8 of the filed PDF · View the filing
Dolphin subsidiary contribution: Rs 43 crores (Q1 FY27)
p. 11
“apart from Dolphin contributing around INR43 crores in this quarter, we have a good amount of contribution from other subsidiaries, including our Dubai subsidiary.”
Rohan Shah, page 11 of the filed PDF · View the filing
Dubai subsidiaries revenue: more than Rs 50 crores (Q1 FY27)
p. 11
“So, I think around more than INR50 crores revenue has came from Dubai -- 2 Dubai subsidiaries as well as the Indian subsidiary put together.”
Rohan Shah, page 11 of the filed PDF · View the filing
Production enhancement contract value: Rs 1,402 crores (15-year contract)
p. 6
“Deep Industries has secured INR1,402 crores contract from ONGC for 15 years.”
Paras Savla, page 6 of the filed PDF · View the filing
Prabha Energy loan recovered: Rs 86 crores
p. 18
“Yes. So, from the loan given to Prabha Energy, we have received back almost INR86 crores from them.”
Rohan Shah, page 18 of the filed PDF · View the filing
Bidding pipeline: Rs 700-800 crores
p. 11
“And the bidding pipeline would be continuously hovering around INR700 crores to INR800 crores.”
Rohan Shah, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 43% to 45%
stated firmly by Rohan Shah
p. 7
“We have been maintaining EBITDA margins in the range of 43% to 45%, providing us a decent cash flow to strategize our future growth trajectory.”
Rohan Shah, page 7 of the filed PDF · View the filing
Production enhancement incremental production start — October 2026
stated firmly by Paras Savla
p. 6
“We expect to start contributing through incremental production by October 2026.”
Paras Savla, page 6 of the filed PDF · View the filing
Capex for production enhancement field — Rs 150 crores · By March 2027
stated firmly by Paras Savla
p. 6
“We also plan to do a capex of closely INR150 crores by March 2027.”
Paras Savla, page 6 of the filed PDF · View the filing
Revenue from production enhancement contract — more than Rs 150 crores · FY28
stated as an aspiration by Rohan Shah
p. 10
“And for FY28, we are quite bullish on getting almost more than INR150 crores of revenue from this particular contract.”
Rohan Shah, page 10 of the filed PDF · View the filing
PAT — almost Rs 500 crores · FY28
stated as an aspiration by Rohan Shah
p. 14
“No, on FY28, we are gunning for a PAT of almost INR 500 crores.”
Rohan Shah, page 14 of the filed PDF · View the filing
PAT — about Rs 350 crores · FY27
stated as an aspiration by Rohan Shah
p. 14
“I'm not sure we have said INR 400 crores for FY28 because in FY27 only, we are expecting somewhere about INR 350 crores kind of PAT.”
Rohan Shah, page 14 of the filed PDF · View the filing
Capex — Rs 250 crores to Rs 300 crores · FY27
stated conditionally by Rohan Shah
p. 15
“but yes, based on our broad estimates, we may do capex of around INR 250 crores to INR 300 crores in FY27.”
Rohan Shah, page 15 of the filed PDF · View the filing
Order book execution — more than 60% of order book value · next 2 to 2.5 years
stated firmly by Rohan Shah
p. 16
“So, of this order book, probably more than 60% value is something which is being executed over next 2, 2.5 years.”
Rohan Shah, page 16 of the filed PDF · View the filing
Order book execution in FY27 — almost Rs 800 crores · FY27
stated firmly by Rohan Shah
p. 16
“So, I think you can consider almost INR800 crores kind of contracts would be executed over FY27.”
Rohan Shah, page 16 of the filed PDF · View the filing
EBITDA margin improvement from Kandla — 1.5%
stated conditionally by Rohan Shah
p. 14
“So, our primary estimate suggests that we can improve on operating margin by 1.5% with the help of manufacturing this chemical in-house.”
Rohan Shah, page 14 of the filed PDF · View the filing
Kandla revival capex — not more than Rs 10-15 crores
stated conditionally by Rohan Shah
p. 14
“So, it would not be more than INR10 crores, INR15 crores as our initial estimate suggests.”
Rohan Shah, page 14 of the filed PDF · View the filing
Standalone business growth — 18% to 20% · current financial year
stated conditionally by Rohan Shah
p. 20
“So, we are currently working on different 4 to 5 gas compression and processing contracts, where they were supposed to start contributing from late Q1 and Q2.”
Rohan Shah, page 20 of the filed PDF · View the filing
Consolidated growth — more than 25% · current financial year
stated conditionally by Rohan Shah
p. 20
“So, we are currently working on different 4 to 5 gas compression and processing contracts, where they were supposed to start contributing from late Q1 and Q2. So those contracts will give contribution going forward. So, on a stand-alone basis, we are not -- we are expecting growth of somewhere around 18% to 20% in this current financial year with a consolidated growth of more than 25%.”
Rohan Shah, page 20 of the filed PDF · View the filing
Kandla contribution start — later in current financial year
stated conditionally by Rohan Shah
p. 9
“So, we are expecting probably later in this current financial year to start getting contribution from Kandla as well on improvement of our operating margin.”
Rohan Shah, page 9 of the filed PDF · View the filing
Prabha Energy loan repayment — entire loan repaid · end of second quarter
stated firmly by Rohan Shah
p. 18
“And probably by end of second quarter, we are expecting to clear the entire loan repaid.”
Rohan Shah, page 18 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said current assets are fully utilized and growth will come from adding new assets to the fleet.
Answered by Paras Savla
Asked by Parth Sodha: How does management see the offshore business evolving over the next 2-3 years, and is the focus on adding assets or improving utilization?
p. 8
“So currently, we have 1 -- we have 2 assets and which are completely deployed. So, utilization of the current assets is complete. It's with the new assets that would be added to the pool and the growth has to happen thereafter.”
Paras Savla, page 8 of the filed PDF · View the filing
Management said they operate from 3 fields and capacity can be increased as opportunities arise.
Answered by Rohan Shah
Asked by Balasubramanian: What are the current gas processing capacities and utilization levels?
p. 9
“So, in entire gas processing, currently, we are operating from 3 different fields, 2 of ONGC and 1 of Cairn.”
Rohan Shah, page 9 of the filed PDF · View the filing
Management said the momentum should continue given sector demand.
Answered by Paras Savla
Asked by Sudhir Bheda: Can the company sustain 35%+ topline and 40%+ bottomline growth for the next couple of years, potentially delivering Rs 450-500 crore profit in FY28?
p. 9
“We believe it should. With the momentum currently going on, it won't surprise us if we can do that much.”
Paras Savla, page 9 of the filed PDF · View the filing
Management said the PEC tender was floated a month ago and is under evaluation, capex for offshore follows firm orders, and higher-capacity rig demand is growing.
Answered by Rohan Shah
Asked by Manan Shah: What is the status of the PEC tender, DSV/PSV identification for offshore, and market size for 1000 HP vs 2000 HP drilling rigs?
p. 11
“So, we are in process of evaluating and bidding this higher capacity drilling rigs in -- probably in the next few months.”
Rohan Shah, page 11 of the filed PDF · View the filing
Management said the block operates under a free-price mechanism with spot prices ranging widely.
Answered by Rohan Shah
Asked by Bhavya Gandhi: What is the current gas price rate per MMBtu and does the PEC contract have a price floor?
p. 12
“Around -- it's ranging from USD 8 to even USD 14, USD 15 as well in spot market.”
Rohan Shah, page 12 of the filed PDF · View the filing
Management said legacy issues are fully resolved with no further write-offs expected.
Answered by Rohan Shah
Asked by Raman KV: Are further write-offs expected related to Kandla?
p. 13
“With regards to Kandla, we are completely done with the legacy issues. And so no more further write-off in the current year.”
Rohan Shah, page 13 of the filed PDF · View the filing
Management estimated a 1.5% improvement in operating margin from in-house chemical manufacturing.
Answered by Rohan Shah
Asked by Manan: How much EBITDA margin improvement is expected from the Kandla facility?
p. 14
“Would improve our EBITDA margin going forward, yes.”
Rohan Shah, page 14 of the filed PDF · View the filing
Management said blended EBITDA should improve as offshore and production enhancement contribute more.
Answered by Rohan Shah
Asked by Pankaj: How does management see blended EBITDA margins evolving as offshore and PEC contribution grows?
p. 15
“So, we believe that blended EBITDA should improve in FY28 and probably in later year as well because by getting incremental contribution from offshore as well as production enhancement contracts will help us improving on blended EBITDA.”
Rohan Shah, page 15 of the filed PDF · View the filing
Management confirmed the company is largely into post-exploration services only.
Answered by Rohan Shah
Asked by Sourav Mondal: Is the company involved in exploration or only post-exploration services?
p. 16
“So, we are largely into post-exploration only.”
Rohan Shah, page 16 of the filed PDF · View the filing
Management said Mori exceeded expectations before the incident and they may explore other nearby wells.
Answered by Rohan Shah
Asked by Srikar Sai: How much was the Mori field expected to contribute, and what is the status after the incident?
p. 17
“No. So, Mori was beyond our surprise, and we had encountered a huge amount of gas with high pressure. But with the recent incident, as of now, Mori-5, we are not operating, but we may explore other wells around Mori-5.”
Rohan Shah, page 17 of the filed PDF · View the filing
Management said current production is slightly above baseline, with incremental production expected from September/October and new wells contributing from Q4 or Q1 next year.
Answered by Rohan Shah
Asked by Yash: Has baseline production been reached post the mishap, and when will incremental production and new wells start contributing?
p. 18
“Yes. So, in existing production enhancement operation, we are a little above this baseline production.”
Rohan Shah, page 18 of the filed PDF · View the filing
Management estimated over Rs 150 crore revenue from the field in FY28 and said no equity raise is currently foreseen.
Answered by Rohan Shah
Asked by Sanjay Shah: How much will the production enhancement contract contribute to the FY28 profit target, and are equity fundraising plans envisaged?
p. 19
“Yes, yes. So, with regards to production enhancement, we are expecting revenue of almost INR150-plus crores kind in FY28 with this single field, which we have.”
Rohan Shah, page 19 of the filed PDF · View the filing
Management said new gas compression and processing contracts starting from Q2 will drive growth, supplemented by tenders expected to convert.
Answered by Rohan Shah
Asked by Pankaj Motwani: What is constraining growth in the standalone segment, and how will the guided 18-20% growth be achieved given the current order book?
p. 20
“So, on a stand-alone basis, this INR170 crores kind of quarter would improve from Q2 onwards because by adding new contracts into the revenue.”
Rohan Shah, page 20 of the filed PDF · View the filing
Risks flagged
Delay in incremental production at the Mori field due to an incident at one of the wells
p. 6
“But due to an unfortunate incident at one of our wells at Mori 5, the incremental production was delayed by 5 to 6 months.”
Paras Savla, page 6 of the filed PDF · View the filing
Capex for offshore and higher-capacity rigs is contingent on securing firm contracts, limiting predictability
p. 6
“Capital expenditure is strictly committed only upon securing firm deployment contracts.”
Paras Savla, page 6 of the filed PDF · View the filing
Global energy markets remain affected by lingering geopolitical friction from the Strait of Hormuz situation
p. 3
“With the Strait still operating under restricted capacity, lingering geopolitical friction and operational bottlenecks continue to keep global markets on edge even as supply networks gradually adapt to the new realities.”
Paras Savla, page 3 of the filed PDF · View the filing
Anchor handling tug asset lacks a long-term contract, limiting its contribution
p. 20
“Yes, it has started contributing, but it is not under any long-term contract as of now. So, the contribution is not significant from that particular asset.”
Rohan Shah, page 20 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.