DEE Development Engineers Reports Robust Q2 FY26 Performance with 39% Revenue Growth

DEE Development Engineers Limited has reported a strong financial performance for the second quarter of fiscal year 2026, with significant growth in revenue and operational efficiency.

Financial Highlights

Particulars (₹ in crore)	Q2 FY26	Q2 FY25	YoY Change	H1 FY26	H1 FY25	YoY Change
Revenue from Operations	270.00	194.00	39.2%	493.80	379.00	30.3%
Operating EBITDA	44.10	29.80	47.9%	79.90	54.60	46.4%
Operating EBITDA Margin	16.3%	15.4%	96 bps	16.2%	14.4%	179 bps
Profit After Tax (PAT)	17.90	22.30	-19.8%	31.10	25.50	22.1%
PAT Margin	6.5%	10.6%	-411 bps	6.2%	6.4%	-22 bps

DEE Development Engineers Limited reported a robust performance in Q2 FY26, with revenue from operations surging by 39.2% year-on-year to ₹270.00 crore. The company's operating EBITDA showed an impressive growth of 47.9%, reaching ₹44.10 crore, with margins expanding by 96 basis points to 16.3%.

Operational Highlights

The company's growth was driven by strong demand across its key sectors:

Power Sector Traction: DEE received new orders worth ₹170 crore from leading thermal power players.
Order Book Strength: As of September 30, 2025, the company maintains a robust order book of ₹1,308 crore.
Capacity Expansion: DEE commissioned its production capacity of 30,000 MT at its Anjar facility in September 2025.

Management Commentary

Shri Krishan Lalit Bansal, Chairman & Managing Director, stated, "We are pleased to announce a very strong performance for the quarter and half year ended September 30, 2025, underscored by robust revenue growth and consistent operational execution."

He added, "The company continues to witness traction in the power sector, with new orders received of ₹170 Crores from leading thermal power players. Supported by healthy demand from the oil and gas segment and an order book of ₹1,308 Crores as on 30th September 2025, the Company remains well positioned for sustained growth."

Segment-wise Performance

Segment (₹ in crore)	Q2 FY26	Q2 FY25	YoY Change	% of Total Revenue
Piping Division	244.00	158.80	53.7%	90.4%
Power Division	11.00	21.70	-49.3%	4.1%
Heavy Fabrication	14.60	13.40	9.0%	5.4%
Gas Plants	0.40	-	-	0.2%

The Piping Division continued to be the primary revenue driver, contributing 90.4% of the total revenue and showing a significant year-on-year growth of 53.7%.

Future Outlook

With the commissioning of the 30,000 MT production capacity at its Anjar facility and the upcoming 7,000 MT Seamless Pipe Plant expected to be operational by Q3 FY26, DEE Development Engineers is well-positioned for future growth. The company's focus on execution excellence, capacity expansion, and capitalizing on emerging opportunities in the power and oil & gas sectors is expected to drive sustainable growth and long-term value for stakeholders.

DEE Development Engineers Limited's strong performance in Q2 FY26 reflects its resilience and strategic positioning in the process piping solutions market. As the company continues to expand its capabilities and order book, it remains well-equipped to capitalize on the growing demand in its key sectors.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.81%	-2.59%	-8.96%	+10.85%	-7.84%	-26.55%

DEE Development Engineers has reported a mixed set of financial results for the second quarter of the fiscal year. The company's consolidated net profit saw a decline, while its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed improvement.

Net Profit Decline

For Q2, DEE Development reported a consolidated net profit of 179.00 million rupees, down from 223.00 million rupees in the same quarter of the previous year. This represents a year-over-year decrease of approximately 19.73% in the company's bottom line.

EBITDA Improvement

Despite the drop in net profit, the company's EBITDA showed significant growth. EBITDA for the quarter increased to 441.00 million rupees from 298.00 million rupees in the corresponding quarter of the previous year, marking a substantial rise of about 48.00%.

EBITDA Margin Expansion

The EBITDA margin also saw an improvement, rising to 16.32% compared to 15.36% in the same quarter of the previous year. This expansion in EBITDA margin indicates enhanced operational efficiency.

Segment Performance

The company's financial results reveal varied performance across its business segments:

Segment	Revenue (INR Lacs)	Profit/(Loss) Before Interest and Tax (INR Lacs)
Piping division	24,686.05	3,480.60
Power division	1,097.25	(136.64)
Heavy fabrication	1,455.02	469.31
Unallocated	42.94	(302.80)

The piping division emerged as the strongest performer, while the power division reported a loss.

Financial Position

As of September 30, 2025, DEE Development's consolidated balance sheet showed:

Total assets: 1,83,156.91 lacs
Total equity: 83,710.44 lacs
Total liabilities: 99,446.47 lacs

Ongoing Legal Matter

The company is currently involved in a legal dispute with Punjab State Power Corporation Limited (PSPCL) regarding tariff revision for its 8 MW biomass-based power plant. The matter is sub-judice, with the Punjab and Haryana High Court having stayed the operation of the Punjab State Electricity Regulatory Commission's order that had reduced the tariff.

DEE Development's management believes there is a strong likelihood of succeeding in this matter, and no adjustments have been made in the financial results regarding the disputed amount.

Investors and stakeholders should keep a close eye on how this legal issue unfolds, as it may have implications for the company's future financial performance, particularly in its power division.

The mixed results highlight both challenges and opportunities for DEE Development. While the company has managed to improve its operational efficiency as evidenced by the higher EBITDA and margin, the decline in net profit suggests there may be other factors affecting the bottom line. The company's ability to navigate these challenges while capitalizing on its operational improvements will be crucial for its future performance.