DEE Development Engineers Limited (DDEL) has reported a robust performance for the second quarter of fiscal year 2026, marked by significant revenue growth and operational improvements. The company's strategic capacity expansion and strong order book position it well for sustained growth in the coming quarters.

Financial Highlights

DDEL's Q2 FY26 results showcase impressive year-on-year growth:

For the first half of FY26, the company reported:

Order Book and New Projects

DDEL maintains a healthy order book of ₹1,308.00 crore as of September 30, 2025. During Q2, the company secured new orders worth ₹170.00 crore from the thermal power sector, underlining its strong position in this market segment.

Capacity Expansion

In a significant development, DDEL successfully commissioned 15,000 metric tons of process piping solutions capacity at its Anjar facility in September 2025. This expansion doubles the total installed capacity at Anjar to 30,000 metric tons per annum, enhancing the company's ability to serve both domestic and international clients more efficiently.

Future Outlook

DDEL's management expects continued growth in the power and oil & gas sectors:

• Anticipates securing orders worth approximately ₹500.00 crore from the power sector and ₹100.00 crore from oil and gas in the remaining fiscal year.
• Projects revenue growth of 40-45% for the full fiscal year.
• Targets EBITDA margins in the range of 16-18%.

Upcoming Projects

The company is progressing with the installation of a 7,000 metric ton seamless pipe line, expected to commence commercial production by January 2026. This addition aims to strengthen DDEL's backward integration capabilities, enhance cost efficiency, and expand its product mix.

Management Commentary

During the recent earnings conference call, Mr. Krishan Lalit Bansal, Chairman & Managing Director of DDEL, expressed confidence in the company's growth trajectory. He highlighted the strong traction in the power sector and the potential for significant orders in the oil and gas segment, particularly in the next fiscal year.

Mr. Bansal stated, "We are quite hopeful and we have the numbers supporting us, we have the order book supporting us and we have the material supporting us." He also mentioned that the company is preparing a detailed paper on the opportunities available in the power sector, which will be shared with stakeholders soon.

Conclusion

With its expanded capacity, robust order book, and positive outlook in key sectors, DEE Development Engineers Limited appears well-positioned for continued growth. The company's focus on high-value projects and strategic capacity enhancements could drive improved profitability in the coming quarters, subject to market conditions and successful execution of its order book.

DEE Development Engineers Limited has released its latest order book updates and announced significant developments in its power business, showcasing the company's diverse operations and growth potential.

Order Book Performance

The company has reported impressive order inflows and executions for October 2025:

These figures demonstrate DEE Development Engineers' strong market position and execution capabilities across its business segments.

Power Business Developments

DEE Development Engineers has also announced significant updates in its power business:

1. Malwa Power PPA Extension: The Punjab State Electricity Regulatory Commission has extended Malwa Power's Power Purchase Agreement (PPA) for an additional 10 years. The tariff determination for this extension is scheduled for November 6, 2025.

2. Tariff Stay Order: In a favorable development for DEE Development Engineers, the Punjab and Haryana High Court has stayed the Punjab State Electricity Regulatory Commission's order that had revised the company's power division tariff to ₹5.88 per unit. This stay order allows DEE Development Engineers to continue supplying electricity at the prevailing tariff of ₹27.47 per unit, potentially safeguarding the company's revenue stream in the power sector.

Strategic Acquisition

In a move to strengthen its market position, DEE Development Engineers acquired a majority stake in Molsieve Designs Limited:

• Acquisition Date: June 2025
• Stake Acquired: 70% equity shares
• Impact: Molsieve Designs' order book is now included in DEE Development Engineers' consolidated reporting, potentially boosting the company's overall order book value and diversifying its business portfolio.

This strategic acquisition could enhance DEE Development Engineers' capabilities and market reach, contributing to its future growth prospects.

The combination of a robust order book, favorable developments in the power sector, and strategic acquisitions positions DEE Development Engineers for potential growth and stability in the coming quarters. Investors and market watchers may want to keep a close eye on how these developments translate into the company's financial performance and market position in the future.