Asian Energy Services Limited (AESL) has reported a significant decline in its financial performance for the second quarter of fiscal year 2026, as revealed in its latest consolidated unaudited financial results.

Revenue and Profit Decline

For the quarter ended September 30, 2025, AESL reported:

• Consolidated revenue from operations: ₹10,199.78 crore (up 4.4% year-over-year from ₹9,772.13 crore)
• Net profit after tax: Loss of ₹397.32 crore (down from a profit of ₹929.94 crore in Q2 FY25)

This significant drop in profitability can be attributed to several factors, including increased expenses and an exceptional item.

Segment Performance

AESL's financial results were divided into two main segments:

1. Oil and Gas: Revenue of ₹7,492.80 crore
2. Mineral and Other Energy Services: Revenue of ₹2,706.99 crore

Despite the overall revenue growth, both segments experienced a decline in profitability compared to the previous year.

Exceptional Item and Increased Expenses

Key factors impacting AESL's profitability included:

• An exceptional item of ₹654.39 crore
• Increases in various expense categories:
  • Project-related expenses: ₹8,121.03 crore (up from ₹7,465.46 crore)
  • Finance costs: ₹171.06 crore (up from ₹59.95 crore)
  • Depreciation, depletion, and amortization: ₹470.15 crore (up from ₹425.32 crore)

Strategic Developments

Despite financial challenges, AESL reported strategic developments:

1. Completed acquisition of Kuiper Holdings Limited and Kuiper Group Limited through its wholly-owned subsidiary, Asian Oilfield & Energy Services DMCC, on August 31, 2025.
2. Filed an application for a merger by absorption with Oilmax Energy Private Limited, pending approval from the stock exchange.

Outlook

While facing short-term financial pressures, AESL's strategic moves, including the Kuiper acquisition and the pending merger, may position it for future growth. The immediate focus will likely be on managing costs and improving profitability across its business segments.

Investors and stakeholders will be watching closely to see how AESL navigates these challenges and capitalizes on its recent strategic initiatives in the coming quarters.

Asian Energy Services Limited (AESL), a prominent integrated service provider in the energy and mining sectors, has announced two significant developments: a substantial contract award and a credit rating update.

Major Contract Award

AESL, along with its joint venture partner, has been awarded a contract worth approximately ₹459 crore from Mahanadi Coalfields Limited for the establishment of a Coal Handling Plant in Odisha. This marks AESL's largest Coal Handling Plant (CHP) order to date.

Contract Details

The contract involves:

• Pre-Engineered Turnkey Execution
• Design and Supply
• Erection and Commissioning
• Trial Run and Testing
• Operations and Maintenance during the Defect Liability Period (DLP)

The project is set to be executed over a span of seven years.

Financial Implications

Credit Rating Update

In addition to the contract award, AESL received a credit rating update from CRISIL Ratings Limited:

• Total bank loan facilities were enhanced to ₹282.50 crore from ₹37.50 crore.
• CRISIL maintained the long-term banking facilities rating at CRISIL BBB/Watch Developing.
• A short-term banking facilities rating of CRISIL A2/Watch Developing was assigned.
• Both ratings are placed on Rating Watch with Developing Implications.

Management's Perspective

Mr. Kapil Garg, Managing Director of Asian Energy Services Limited, commented on the contract award: "This landmark win further fortifies our leadership in the Coal Handling Plant segment and propels our total order book beyond ₹2,000 crore, underscoring a robust revenue pipeline and a bright growth trajectory for the years ahead."

Company Overview

Established in 1992, Asian Energy Services Limited has evolved into a comprehensive service provider in the energy sector, offering:

• Seismic data acquisition
• EPC for production facilities
• Production enhancement
• Mining services such as material handling

Market Impact

These developments are likely to be viewed positively by investors. The substantial increase in AESL's order book suggests improved revenue visibility, while the credit rating update reflects the company's enhanced financial profile.

As AESL continues to secure high-value, turnkey projects and strengthen its financial position, it reinforces its standing as a trusted industry frontrunner in the energy and mining services sector. Investors and industry observers will likely monitor AESL's execution of the new project and its ability to leverage its enhanced credit facilities for future growth opportunities.