NewsDeep Industries FY26 Revenue Jumps 55% to ₹890.71 Cr; Corrigendum Filed for Audited ResultsDeep Industries FY26 Revenue Jumps 55% to ₹890.71 Cr; Corrigendum Filed for Audited Results
Deep Industries Limited reported strong FY26 consolidated results with revenue rising 55% to ₹890.71 crore and EBITDA growing 61% to ₹424.82 crore. A non-cash exceptional write-off of ₹20,828.49 lakhs related to Kandla legacy receivables impacted reported PAT, though cash profitability remained robust. The company subsequently filed a corrigendum on May 14, 2026, correcting a typographical error in Note 6 of its audited standalone financial results, submitting revised statements to BSE and NSE.
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Deep Industries Limited , India's only integrated onshore and offshore oil and gas service provider, reported its audited consolidated financial results for the quarter and full year ended March 31, 2026, delivering robust growth across key annual metrics. The Board of Directors approved the results at its meeting held on May 14, 2026. The company posted revenue from operations of ₹890.71 crore for FY26, a 55% increase year-on-year from ₹576.13 crore in FY25. The Board also recommended a final dividend of ₹2.50 per equity share (50% on face value of ₹5 per share), subject to shareholder approval at the ensuing Annual General Meeting. Subsequently, on May 14, 2026, the company filed a corrigendum with BSE Limited and the National Stock Exchange of India Ltd., informing exchanges of a typographical error observed in Note 6 of the audited standalone financial results for the year ended March 31, 2026, and submitted revised standalone and consolidated financial statements accordingly.
Financial Performance
Profitability metrics improved substantially during the year. EBITDA grew by 61% to ₹424.82 crore from ₹263.79 crore in FY25, with EBITDA margin expanding by 89 basis points to 44%. Profit Before Tax (PBT) rose 65% to ₹347.95 crore, while cash profit surged to ₹442 crore with a cash PAT margin of 46%. The company reported a Profit After Tax (PAT) of ₹197.06 crore for FY26, recovering from a loss of ₹78.76 crore in FY25. The growth was further supported by strategic diversification and expanded overseas operations, which helped reduce single-client dependency to below 40% of total revenue.
On a quarterly basis, Q4 revenue came in at ₹248.71 crore versus ₹167.23 crore in Q4 of the prior year. Q4 EBITDA stood at ₹88.53 crore against ₹48.79 crore year-on-year, while Q4 EBITDA margin contracted to 32.93% from 43.31% in the same period last year. The company reported a Q4 consolidated net loss attributable to owners of ₹14.36 crore, compared to a net loss attributable to owners of ₹209.17 crore in Q4 of the prior year.
The following table presents the consolidated annual financial performance for FY26:
| Particulars (₹ Cr): | FY26 | FY25 | % YoY |
|---|---|---|---|
| Operating Revenue | 890.71 | 576.13 | 55% |
| Total Income | 960.26 | 608.45 | 58% |
| EBITDA | 424.82 | 263.79 | 61% |
| EBITDA Margin (%) | 44% | 43% | 89 bps |
| PBT | 347.95 | 210.77 | 65% |
| PBT Margin (%) | 36% | 34.60% | 159 bps |
The following table presents the Q4 consolidated financial highlights:
| Metric: | Q4 FY26 | Q4 FY25 |
|---|---|---|
| Revenue (₹ Cr) | 248.71 | 167.23 |
| EBITDA (₹ Cr) | 88.53 | 48.79 |
| EBITDA Margin (%) | 32.93% | 43.31% |
| Net Loss attributable to Owners (₹ Cr) | 14.36 | 209.17 |
Consolidated Profit & Loss Summary
The detailed profit and loss breakdown for the full year, as per the revised audited consolidated financial results, is presented below:
| Particulars (₹ Lakhs): | FY26 | FY25 | % YoY |
|---|---|---|---|
| Revenues | 89,071.39 | 57,613.01 | 54.60% |
| Other Income | 6,954.15 | 3,232.84 | 115.11% |
| Total Income | 96,025.54 | 60,845.85 | 57.82% |
| Cost of Materials / Stock-in-Trade | 40,015.15 | 23,719.03 | 68.70% |
| Employee Benefit Expenses | 7,811.80 | 6,239.03 | 25.21% |
| Finance Cost | 1,763.55 | 1,184.73 | 48.86% |
| Depreciation & Amortization | 5,923.01 | 4,117.24 | 43.86% |
| Other Expenses | 5,716.92 | 4,508.34 | 26.82% |
| Total Expenses | 61,230.43 | 39,768.37 | — |
| Profit Before Exceptional Items & Tax | 34,795.11 | 21,077.48 | 65.08% |
| Exceptional Items (Expense) | (20,828.49) | (25,105.51) | — |
| Profit Before Tax | 13,966.62 | (4,028.03) | — |
| Total Tax Expense | (5,739.37) | 3,848.15 | — |
| Net Profit/(Loss) for the Year | 19,705.99 | (7,876.18) | — |
| Net Profit attributable to Owners | 17,993.86 | (9,010.29) | — |
| Basic & Diluted EPS (₹) | 28.12 | (14.08) | — |
Standalone Financial Highlights
On a standalone basis, Deep Industries reported revenue from operations of ₹70,296.17 lakhs for FY26, compared to ₹47,747.86 lakhs in FY25. Total standalone income stood at ₹75,584.83 lakhs against ₹51,576.86 lakhs in FY25. Standalone profit before exceptional items and tax was ₹25,658.12 lakhs versus ₹17,426.53 lakhs in FY25. After accounting for the exceptional item of ₹20,828.49 lakhs (write-off of legacy trade receivables), standalone profit before tax was ₹4,829.63 lakhs. Standalone net profit for FY26 was ₹9,748.19 lakhs, compared to a net loss of ₹11,543.32 lakhs in FY25. Basic and diluted EPS on a standalone basis stood at ₹15.23 for FY26 against ₹(18.04) in FY25.
The standalone statement of assets and liabilities as at March 31, 2026 reflects total assets of ₹2,09,053.20 lakhs, compared to ₹2,03,321.44 lakhs as at March 31, 2025. Total equity stood at ₹1,66,323.38 lakhs, with equity share capital of ₹3,200.00 lakhs and other equity of ₹1,63,123.38 lakhs.
The following table presents key standalone financial metrics for FY26:
| Particulars (₹ Lakhs): | FY26 | FY25 |
|---|---|---|
| Revenue from Operations | 70,296.17 | 47,747.86 |
| Total Income | 75,584.83 | 51,576.86 |
| Profit Before Exceptional Items & Tax | 25,658.12 | 17,426.53 |
| Exceptional Item (Expense) | (20,828.49) | (24,982.75) |
| Profit Before Tax | 4,829.63 | (7,556.22) |
| Net Profit/(Loss) | 9,748.19 | (11,543.32) |
| Basic & Diluted EPS (₹) | 15.23 | (18.04) |
| Total Assets | 2,09,053.20 | 2,03,321.44 |
| Total Equity | 1,66,323.38 | 1,58,504.38 |
For year-on-year comparison purposes, excluding the exceptional item, standalone net profit before exceptional items (net of tax) stood at ₹25,334.77 lakhs for FY26 versus ₹7,152.02 lakhs in FY25, with standalone EPS before exceptional item at ₹39.59 compared to ₹11.18 in FY25.
Balance Sheet and Key Ratios
The company's consolidated balance sheet remained strong, with total assets growing to ₹2,59,499.28 lakhs as at March 31, 2026, from ₹2,39,271.12 lakhs as at March 31, 2025. Total equity (including non-controlling interest) stood at ₹2,11,229.55 lakhs. Net worth increased by 13% to ₹1,614.27 crore. Total debt as of March 31, 2026 stood at ₹202.98 crore, resulting in a Debt to Equity ratio of 0.13, a decline of 174 basis points year-on-year. Net cash flow from operating activities increased to ₹270 crore in FY26 from ₹210 crore in FY25.
Key operational ratios also showed marked improvement, as summarised below:
| Metric: | FY26 | FY25 |
|---|---|---|
| Return on Equity (ROE) | 21.86% | 12.01% |
| Return on Capital Employed (ROCE) | 19.27% | 13.06% |
| EV/EBITDA (times) | 6.93x | 12.87x |
| Receivables (days) | 131 days | 275 days |
| Debt to Equity Ratio | 0.13 | — |
Business Update: Kandla Merger and Receivables Write-Off
Deep Industries acquired Kandla Energy and Chemicals Limited (Kandla) under the Corporate Insolvency and Resolution Process in March 2025, with the intent of enabling backward integration for in-house sourcing of chemicals and hydrocarbon fluids. The Scheme of Amalgamation of Kandla with Deep Industries Limited was sanctioned by the Hon'ble National Company Law Tribunal (NCLT), Ahmedabad Bench vide order dated March 23, 2026, and became effective from March 30, 2026, with an appointed date of March 31, 2025. Comparative figures for the previous period/year have been restated and/or reclassified wherever necessary to give effect to the scheme.
Following the acquisition, management adopted a conservative accounting approach regarding inherited trade receivables. After a comprehensive 12-month reconciliation and recovery program, it was determined that certain legacy receivables did not meet the criteria for realization. Consequently, the company elected to write off these legacy trade receivables amounting to ₹20,828.49 lakhs as a non-recurring, non-cash exceptional item, as part of a balance sheet strengthening exercise. The company stated that this write-off has not impacted core cash profitability in FY26. The statutory auditors, M/s Mahendra N. Shah & Co. (FRN: 105775W), issued an audit report with an unmodified opinion on both standalone and consolidated audited financial results for the quarter and financial year ended March 31, 2026.
Additionally, consolidated trade receivables include old trade receivables of Dolphin Offshore Group of ₹14,100.00 lakhs and Dolphin Offshore Shipping Limited of ₹2,011.22 lakhs, pertaining to old outstanding balances from erstwhile business before acquisition of the group, totalling ₹16,111.22 lakhs. These have been retained as receivable based on management's best assessment of recoverability and arbitration awards in the company's favour.
For year-on-year comparison purposes, excluding the exceptional item, the consolidated profit before exceptional items and tax stood at ₹34,795.11 lakhs for FY26 versus ₹21,077.48 lakhs in FY25. Net profit attributable to owners before exceptional items was ₹33,580.44 lakhs for FY26, with EPS before exceptional items at ₹52.47, compared to ₹15.28 in FY25.
Internal Auditor Re-Appointment
The Board also approved the re-appointment of M/s. Manubhai & Shah LLP (Firm Registration No. 106041W/W100136) as Internal Auditor of the Company for the financial year 2026-27. M/s. Manubhai & Shah LLP was established in Ahmedabad in 1945 and has grown into one of the larger audit firms in India, holding ISO 9001 certification for Quality Management Systems and ISO 27001 certification for Information Security Management Systems.
Management Commentary
Commenting on the performance, Mr. Paras S. Savla, Chairman and Managing Director, Deep Industries Limited, expressed satisfaction with the company's FY26 performance, attributing it to the company's ability to adapt to market dynamics and seize emerging opportunities. He noted that the write-off of Kandla receivables of ₹208.28 crore was a conscious decision to clean up the books and ensure higher returns to shareholders in years to come.
Mr. Savla also highlighted the company's entry into a Memorandum of Understanding (MOU) for venturing into the Green Hydrogen business, aimed at exploring new business areas and bidding for Green Hydrogen project tenders and contracts. He noted that the oil and gas sector is transitioning from "crisis management" to "structural rebalancing," with India fast-tracking efforts to reduce import dependence as part of a broader USD 500 billion opportunity in energy infrastructure by 2030.
Business Outlook
Deep Industries continues to position itself as an integrated onshore and offshore oil and gas service provider with a service portfolio covering more than 70% of the post-exploration value chain. The company's diversified offerings include natural gas compression, dehydration, drilling and workover rigs, integrated project management, and charter hiring of gas processing services. With a strengthened leadership team and strategic focus on operational excellence, the company remains committed to sustainable growth and long-term value creation for stakeholders.
How will Deep Industries' entry into the Green Hydrogen business impact its revenue mix and capital allocation strategy over the next 3-5 years, given its current focus on oil and gas services?
With ₹16,111.22 lakhs in legacy Dolphin Offshore receivables still on the books pending arbitration, what is the timeline and probability of recovery, and could these trigger another exceptional write-off in FY27?
As Deep Industries targets reducing single-client dependency below 40%, which geographies or client segments are expected to drive the next phase of overseas revenue diversification?
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