South West Pinnacle Exploration Limited delivered impressive financial results for the third quarter of FY26, demonstrating strong operational performance across its drilling and exploration business. The company reported substantial growth in both revenue and profitability, reinforcing its position in the exploration sector.

Financial Performance Highlights

The company's standalone financial results showed remarkable improvement across key metrics for Q3FY26 ended December 31, 2025:

The company's total income for the quarter reached ₹6,339.46 lakhs, including other income of ₹73.26 lakhs. Total expenses were managed at ₹5,017.57 lakhs, resulting in improved operational efficiency.

Nine-Month Performance

For the nine-month period ended December 31, 2025, South West Pinnacle maintained strong momentum with revenue from operations reaching ₹16,519.68 lakhs compared to ₹10,426.35 lakhs in the corresponding period of the previous year. Net profit for the nine-month period stood at ₹1,945.85 lakhs, significantly higher than ₹570.69 lakhs in the previous year.

Consolidated Results

On a consolidated basis, the company reported net profit of ₹921.90 lakhs for Q3FY26 versus ₹415.99 lakhs in Q3FY25. Consolidated revenue from operations grew to ₹6,266.57 lakhs from ₹4,854.21 lakhs year-over-year. The consolidated results include contributions from subsidiaries and joint ventures across the group's operations.

Segment Performance

The drilling and exploration segment remained the primary revenue driver, contributing the entire operational revenue of ₹6,266.57 lakhs for the quarter. The segment demonstrated strong profitability with segment results of ₹1,322.01 lakhs for Q3FY26. The coal mining and trading segment remained inactive during the current quarter.

Corporate Developments

The Board of Directors approved several key decisions during their meeting held on February 09, 2026:

Balance Sheet Strength

The company maintained a strong financial position with paid-up equity share capital of ₹2,983.00 lakhs and other equity of ₹14,201.00 lakhs as of December 31, 2025. Total consolidated assets stood at ₹31,375.05 lakhs, while total liabilities were ₹12,384.23 lakhs, indicating a healthy balance sheet structure.

Outlook and Operations

South West Pinnacle continues to focus on its core drilling and exploration activities while expanding its coal exploration capabilities. The company has been allocated a coal block in Jharkhand and has commenced full-scale mine development and exploration activities during the quarter. The business model involves mobilization and demobilization of resources including rigs, which may impact revenue patterns based on project requirements.

South West Pinnacle Exploration Limited has officially received Letters of Award (LOA) from Central Mine Planning and Design Institute Limited (CMPDI) for two coal exploration projects. The company announced this development under Regulation 30, confirming the aggregate value of both projects at approximately Rs. 30.45 crores including GST.

Project Portfolio and Financial Impact

The awarded contracts involve detailed exploration of coal reserves across two strategically important states. CMPDI, a Mini Ratna public sector company and subsidiary of Coal India Limited, has entrusted South West Pinnacle Exploration with these significant projects that will strengthen the company's order book and contribute to both top-line and bottom-line growth.

Project Specifications and Terms

The contracts focus on detailed exploration of coal in Madhya Pradesh and Maharashtra, two key coal-bearing states in India. Under the agreement terms, CMPDI will arrange all statutory clearances in forest areas and provide exploration schemes. The institute will also suggest and approve borehole locations, select boreholes for special tests, and conduct regular verification of completed and ongoing exploration works.

Regulatory Compliance and Corporate Governance

The announcement was made in accordance with SEBI Circular no. CIR/CFD/CMD/4/2015 dated September 09, 2015, demonstrating the company's commitment to regulatory compliance. The company confirmed that neither promoters nor group companies have any interest in CMPDI, and the contracts do not fall within related party transactions, ensuring arms-length dealings.

Strategic Market Position

This formal award from CMPDI validates South West Pinnacle Exploration's technical capabilities in the coal exploration sector. The projects span different timeframes, with Madhya Pradesh representing a long-term engagement and Maharashtra offering short-term opportunities, providing balanced revenue streams for the company's operations.