Deep Industries Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Deep Industries Ltd filed with BSE on 21 May 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 Q4 FY26 operating revenue of Rs 248.7 crore, up 49% year-on-year, and full year FY26 operating revenue of Rs 891 crore, up 55%. The company took a one-time non-cash write-off of around Rs 208 crore of legacy Kandla Energy trade receivables while stating this did not affect cash profitability, and management discussed a gas leak incident at Well Mori-5 that shifted the production enhancement timeline by five to six months. Management also outlined order book levels near Rs 3,000 crore, capex plans of around Rs 300 crore for the year, and expectations of continued growth in FY27 and FY28.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Operating revenue: Rs 248.7 crores (Q4 FY26)
p. 6
“With regards to operational revenue for Q4 FY26, it has rose to INR248.7 crores, up by 49% year-on-year.”
Rohan Shah, page 6 of the filed PDF · View the filing
Operating revenue: Rs 891 crores (FY26)
p. 6
“For full year operating revenue jumped by 55% to INR891 crores.”
Rohan Shah, page 6 of the filed PDF · View the filing
EBITDA: Rs 106.85 crores (Q4 FY26)
p. 6
“Control over costing and operational efficiencies have helped us post 71% year-on-year growth in EBITDA to INR106.85 crores in Q4 with EBITDA margin of 39%, and for full year EBITDA has shown growth of 44% to INR424.82 crores.”
Rohan Shah, page 6 of the filed PDF · View the filing
Net profit excluding exceptional item: Rs 148.6 crores (Q4 FY26)
p. 6
“Net profit for the fourth quarter, excluding onetime exception item net of tax was at INR148.6 crores and for full year net profit, excluding onetime exception item net of tax stood at INR352.9 crores.”
Rohan Shah, page 6 of the filed PDF · View the filing
Cash profit: Rs 442 crores (FY26)
p. 6
“Cash profit for the year stood at INR442 crores with cash profit margin of 46%.”
Rohan Shah, page 6 of the filed PDF · View the filing
Adjusted ROE: 21.8% (FY26)
p. 6
“Our adjusted ROE reached to 21.8% and adjusted ROCE has reached to 19.2%.”
Rohan Shah, page 6 of the filed PDF · View the filing
Debt-to-EBITDA: 0.48 (FY26)
p. 6
“Our debt-to-EBITDA ratio has improved and remained very strong at 0.48.”
Rohan Shah, page 6 of the filed PDF · View the filing
Net cash flow from operating activities: Rs 270 crores (FY26)
p. 5
“Our net cash flow from the operating activities have been increased to INR270 crores in FY26 from INR210 crores in FY2025.”
Paras Savla, page 5 of the filed PDF · View the filing
Kandla legacy receivables write-off: Rs 208 crores (FY26)
p. 6
“we have taken write-off of around INR208 crores of Kandla legacy trade receivables after intensive recovery process.”
Rohan Shah, page 6 of the filed PDF · View the filing
Order book: Rs 3,000-plus crores
p. 6
“Our order book consistently revolving at INR3,000-plus crores gives us a clear visibility of growth in coming years.”
Rohan Shah, page 6 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.
Revenue growth — 25% to 30% · FY27 and FY28
stated as an aspiration by Paras Savla
p. 7
“So with the current trend that is going on, we are quite optimistic that this trajectory of growth that has been witnessed in past few years should keep continuing. But our sense is that it could be more than 25% to 30%.”
Paras Savla, page 7 of the filed PDF · View the filing
EBITDA margin — 44%, 45% · year-on-year
stated as an aspiration by Rohan Shah
p. 13
“So EBITDA would be -- remain on growth trajectory only. And probably what we believe is we should be able to maintain EBITDA of 44%, 45% year-on-year. It may vary 1% or 2% here and there, but no major movement.”
Rohan Shah, page 13 of the filed PDF · View the filing
Capex — around INR300 crores · this year
stated conditionally by Rohan Shah
p. 13
“So more or less for this year, we are targeting to have capex of around INR300 crores -- and if we'll be able to achieve some good orders in offshore segment, then this capex can increase further.”
Rohan Shah, page 13 of the filed PDF · View the filing
Order book execution — more than INR800 crores · FY27
stated firmly by Rohan Shah
p. 15
“So I would say more than INR800 crores kind of orders would be executed for this financial year out of this INR3,000 crores.”
Rohan Shah, page 15 of the filed PDF · View the filing
Dolphin Offshore revenue — around INR150 crores · FY27
stated conditionally by Rohan Shah
p. 16
“But with the single assets which we are already operating, we are expecting top line of around INR150 crores from this financial year and the current FY27 with EBITDA of almost 60%.”
Rohan Shah, page 16 of the filed PDF · View the filing
Production enhancement timeline — 1 to 2 quarters
stated conditionally by Paras Savla
p. 8
“Maybe it will have an impact of maximum, as I mentioned, 1 or 2 quarters, but everything else is just intact.”
Paras Savla, page 8 of the filed PDF · View the filing
Overall company growth — double the company · 3 to 5 years
stated as an aspiration by Paras Savla
p. 19
“Maybe a few percentages here and there. But barring that, now that government has a great move, on this sector, it won't be surprised company could even get double in next 3 to 5 years.”
Paras Savla, page 19 of the filed PDF · View the filing
New drilling rig capex — INR100 crores to INR120 crores
stated conditionally by Rohan Shah
p. 15
“So our primary estimate is the rig can be of around INR100 crores or INR100 crores to INR120 crores, but that depends on the availability of equipment as well.”
Rohan Shah, page 15 of the filed PDF · View the filing
Return on new capex — more than 20%
stated as an aspiration by Rohan Shah
p. 18
“Definitely more than 20% kind of. The opportunities are shaping up with higher capacity, you will have a good margin as well.”
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.
All Kandla legacy receivables were written off, but Dolphin Group receivables are kept on the books due to arbitration awards in the company's favor.
Answered by Rohan Shah
Asked by Sudhir Bheda: Are all Kandla and legacy receivables written off, or are some still pending?
p. 6
“So we have written off all old trade receivables of Kandla Energy. With our extensive effort of recoverability, we decided that it is not recoverable anymore.”
Rohan Shah, page 6 of the filed PDF · View the filing
Management expects growth trajectory to continue at more than 25% to 30%.
Answered by Paras Savla
Asked by Sudhir Bheda: What growth is projected for FY27 and FY28?
p. 7
“So with the current trend that is going on, we are quite optimistic that this trajectory of growth that has been witnessed in past few years should keep continuing. But our sense is that it could be more than 25% to 30%.”
Paras Savla, page 7 of the filed PDF · View the filing
Higher gross revenue from a contract opportunity was accompanied by correspondingly higher expenses, but overall profit remained intact.
Answered by Rohan Shah
Asked by Manan Shah: What happened with Dolphin's revenue and expense spike this quarter?
p. 8
“So overall profitability in terms of actual profit would remain intact. Probably in terms of margin, you will have seen a little decline. But if you look from profit perspective, it would be in line.”
Rohan Shah, page 8 of the filed PDF · View the filing
There was a one-off ECL provisioning of around Rs 10 crores; excluding that, margins were said to be in parity, with additional repair costs cited as a factor.
Answered by Rohan Shah
Asked by Harsh Shah: Why did Dolphin's EBITDA fall despite higher revenue, and was there a one-off?
p. 11
“Yes. So with regards to Q4, we had one, one-off item of ECL, which is expected credit loss provisioning of around INR10 crores. And I think that is a one-off item. If you will exclude that, then margins are in parity.”
Rohan Shah, page 11 of the filed PDF · View the filing
Rig assets are fully utilized requiring new capex for growth, while gas processing has 12-15% spare capacity.
Answered by Rohan Shah
Asked by Sanjay Shah (KSA Securities): How much operating leverage remains before the next capex cycle?
p. 12
“So with regards to rig segment, our assets are 100% utilized. And so with any new order coming in, we'll have to do capex of new rig. With regards to Gas Processing segment, we have still availability of around 12%, 15%.”
Rohan Shah, page 12 of the filed PDF · View the filing
The company decided not to proceed with the QIP.
Answered by Rohan Shah
Asked by Parth (Individual Investor): Is the company still planning to go ahead with the QIP given improved cash flows?
p. 16
“No. So we have decided not to go ahead with QIP.”
Rohan Shah, page 16 of the filed PDF · View the filing
More than Rs 800 crores of the Rs 3,000 crore order book is expected to be executed this financial year.
Answered by Rohan Shah
Asked by Pankaj (Axis Capital): How much of the order book will be executed in FY27?
p. 15
“So I would say more than INR800 crores kind of orders would be executed for this financial year out of this INR3,000 crores.”
Rohan Shah, page 15 of the filed PDF · View the filing
The gap is expected to be filled by new orders anticipated to be secured and mobilized in the first six months of the year.
Answered by Rohan Shah
Asked by Bhavya Gandhi: Where will incremental revenue come from to meet the 25-30% growth guidance given current order book execution math?
p. 20
“The differential revenue would come from the new orders, which we are expecting to get in, in first 6 months of this year, where we'll be able to mobilize those projects probably in first 6 months.”
Rohan Shah, page 20 of the filed PDF · View the filing
Risks flagged
Gas leak incident at Well Mori-5 delayed production enhancement operations
p. 5
“While the incident has resulted into a 5- to 6-month shift in our production enhancement time line, keeping safety as our highest priority, our focus remains on resuming production enhancement operations and meeting our long-term output targets.”
Paras Savla, page 5 of the filed PDF · View the filing
Stop production order issued by APPCB on the Mori-5 well
p. 9
“This stop production order was given only for this particular well, which is already in a question. So we have already shut off this well for now for all the compliance and regulatory matters.”
Paras Savla, page 9 of the filed PDF · View the filing
Workover rig damage leading to force majeure and inability to participate in contracts
p. 9
“So both the fire incident -- sorry, or the incident of the rig that was damaged is a separate issue, but those matters are currently under active consideration, and they are going through the formalities.”
Paras Savla, page 9 of the filed PDF · View the filing
Equipment breakdown and repair costs causing quarterly EBITDA volatility for Dolphin
p. 11
“So for us, probably we always believe that our performance should be evaluated year-on-year basis, not on quarter-on-quarter because it may happen that in one quarter, you have higher repairing expenditure.”
Rohan Shah, page 11 of the filed PDF · View the filing
Uncertainty in outcome of large PEC bids pending completion of geological studies
p. 17
“So internally, we are looking at the bids, we are trying to study them out. But the answer to that is, yes, we are capable of doing it, but the outcome will only be dependent on once we have completed the complete understanding of geology and how we are going to invest and what is the kind of plan that we are going to do.”
Paras Savla, page 17 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.