Deep Industries Limited , a prominent player in the oil and gas field services sector, has reported a strong financial performance for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

The company's quarterly results showcase substantial year-over-year improvements:

Revenue and Profitability

Deep Industries witnessed a remarkable 70.00% year-over-year increase in revenue, reaching ₹2,210.00 crore in Q2 FY2026, up from ₹1,300.00 crore in the same quarter last year. This substantial growth reflects the company's strong market position and increased demand for its services.

The company's bottom line also saw significant improvement, with net profit surging by 75.50% to ₹674.00 crore, compared to ₹384.00 crore in Q2 FY2025. This robust profit growth outpaced the revenue increase, indicating improved operational efficiency and cost management.

EBITDA Performance

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter stood at ₹916.00 crore, marking a 59.30% increase from ₹575.00 crore in the corresponding quarter of the previous year. This growth in EBITDA underscores the company's ability to enhance its operational performance and manage costs effectively.

EBITDA Margin

Despite the overall strong performance, the EBITDA margin experienced a slight decline, moving from 44.23% in Q2 FY2025 to 41.45% in Q2 FY2026. This marginal decrease in margin could be attributed to factors such as increased operational costs or changes in the revenue mix.

Consolidated Performance

On a consolidated basis, Deep Industries and its subsidiaries reported even more impressive results:

• Consolidated revenue reached ₹2,210.09 crore for Q2 FY2026, up from ₹1,306.15 crore in Q2 FY2025, representing a 69.20% increase.
• Consolidated net profit attributable to owners stood at ₹674.14 crore, compared to ₹384.10 crore in the same quarter last year, showing a 75.50% growth.

Conclusion

Deep Industries' Q2 FY2026 results reflect a company on a strong growth trajectory, with significant improvements in revenue and profitability. While the slight decrease in EBITDA margin warrants attention, the overall financial performance indicates that the company is well-positioned in the oil and gas field services sector. The substantial year-over-year growth across key financial metrics demonstrates the company's ability to capitalize on market opportunities and maintain operational efficiency.

Deep Industries Limited , a leading oil and gas support services provider, has reported a robust performance for the first quarter, with significant growth across key financial metrics and operational developments.

Strong Financial Performance

The company's revenue for Q1 rose by 61.6% year-on-year to Rs. 199.50 crores, driven by efficient execution of various service contracts. EBITDA grew by 54.7% to Rs. 95.00 crores, with margins holding steady at 44.6%. Net profit saw a substantial increase of 59.3%, reaching Rs. 61.70 crores.

Order Book Expansion

Deep Industries' order book experienced remarkable growth, expanding by 152.15% to Rs. 3,051.00 crores. This significant increase provides strong visibility for future revenue growth.

Operational Highlights

The company reported several key operational developments:

1. Rajahmundry Field Operations: Deep Industries has successfully taken charge of the Rajahmundry field enhancement operations and has commenced baseline production.

2. New Contracts: The company secured two notable contracts from Oil India Limited:

   • A Rs. 45.00 crores contract for hiring workover rigs
   • A Rs. 96.72 crores contract for 7-year charter hiring of workover rigs in Assam and Arunachal Pradesh

3. Prabha Barge: The Prabha barge began generating revenue in May, marking a significant milestone in the company's diversified operations.

Future Outlook

Deep Industries' management expressed confidence in the company's growth trajectory, citing strong demand in India's oil and gas support services sector. The company expects over 30% year-on-year growth based on its existing order book and anticipates this momentum to continue for the next 2-3 years.

Paras Savla, Chairman and Managing Director of Deep Industries, commented on the sector outlook: "A robust strategic imperative for national energy security is catalyzing unprecedented upstream activity, thereby expanding the market for our specialized capability. This emerging exploration and production landscape directly translates into robust demand for advanced support services."

Strategic Priorities

The company outlined its strategic priorities for the remainder of the fiscal year:

1. Maximize asset utilization and safety across drilling and workover fleet
2. Expand footprint in EOR (Enhanced Oil Recovery) and unconventional segments through new PECs (Production Enhancement Contracts)
3. Scale up charter hiring development of gas processing plants
4. Pursue selective value-accretive M&A to broaden service capabilities

Financial Strategy

Rohan Shah, Director of Finance and CFO, highlighted the company's financial strategy: "We remain focused on sustaining healthy cash flow, optimizing return on deployed capital, and supporting the group's growth ambitions with a prudent performance-driven approach."

Deep Industries' strong start to the quarter, coupled with a favorable policy environment and rising energy demand, positions the company well to deliver sustainable growth and long-term value to its stakeholders.