Dee Development Reports Mixed Q2 Results: Lower Net Profit, Higher EBITDA

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.

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 Limited (DDEL) has reported a significant boost to its order book in September 2025, securing new orders worth ₹63.17 crore. This development has brought the company's total order book to an impressive ₹1,308.09 crore as of September 30, 2025.

Order Inflow and Financial Performance

The company's performance in the fiscal year 2025-26 has been noteworthy, with a cumulative order inflow of ₹598.00 crore. This substantial influx of orders demonstrates DDEL's strong market position and its ability to attract business across various sectors.

To provide a clearer picture of DDEL's order book status, here's a breakdown of the key figures:

Metric	Amount (in ₹ crore)
New Orders (September 2025)	63.17
Total Order Book (as of September 30, 2025)	1,308.09
Cumulative Order Inflow (FY 2025-26)	598.00
Cumulative Order Executed (FY 2025-26)	518.11

Sector-wise Order Distribution

DDEL's order book spans across multiple industries, with significant contributions from the power and oil & gas sectors. The company's diverse portfolio includes:

Sector	Closing Order Book (₹ crore)
Power (India)	370.79
Oil & Gas (India)	887.15
Power (Thailand)	28.02
Oil & Gas (Thailand)	16.14
Others	5.99

Power Purchase Agreements and Tariff Updates

In addition to its core business, DDEL has ongoing Power Purchase Agreements (PPAs) with Punjab State Power Corporation Limited for its Biomass Power Generation business. Notable developments include:

Extension of Malwa Power Private Limited's PPA for another 10 years, with tariff rates to be determined by November 6, 2025.
A stay order from the Punjab & Haryana High Court on the revised tariff for DDEL's Power Division, allowing the company to continue supplying electricity at ₹7.47 per unit instead of the revised ₹5.88 per unit.

These developments in the power sector could potentially impact DDEL's future revenue streams and profitability in the power generation segment.

Conclusion

DEE Development Engineers Limited's recent order acquisition and robust order book position reflect the company's strong market presence and operational efficiency. The diverse sector exposure and ongoing developments in the power sector indicate potential for sustained growth and stability in the coming quarters. Investors and market watchers will likely keep a close eye on DDEL's execution capabilities and future order inflows as indicators of the company's long-term performance trajectory.