South west pinnacle Exploration Limited has secured a significant milestone by signing its largest-ever exploration services contract valued at ₹307 crore. The agreement was executed with Hind Metal Exploration Services Pvt Ltd, a wholly owned subsidiary of Hindustan Zinc Limited, marking a major achievement for the company's business expansion.

Contract Details and Scope

The exploration services contract represents the largest single order ever secured by South West Pinnacle Exploration Limited for providing exploration services in Rajasthan state. The comprehensive agreement is structured as a long-duration contract spanning four years after mobilization completion.

Implementation Timeline and Revenue Impact

The contract execution involves a structured mobilization phase with specific timelines. South West Pinnacle Exploration Limited is required to mobilize machines, manpower, and other necessary resources within 45 days of contract commencement. The company expects the contract to begin generating sizable additional revenue in the first quarter of FY 2026-27 itself, following the completion of mobilization of rigs and other resources.

Key Terms and Responsibilities

The contract outlines specific responsibilities and operational requirements for both parties:

South West Pinnacle Exploration Limited Responsibilities:

• Mobilize machines, manpower and other resources within 45 days
• Construction of approach road
• Execute operations and activities in a prudent, efficient and diligent manner as per mining engineering standards
• Adhere to safety standards, labor, environmental and other applicable laws during contract execution

Hind Metal Exploration Services Responsibilities:

• Arrange all environment and other necessary clearances

Regulatory Compliance

The contract announcement was made in accordance with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company confirmed that the contract does not involve any related party transactions and that promoters or group companies have no interest in the entity that awarded the contract. The agreement is classified as a domestic contract with a domestic entity.

Strategic Significance

This contract represents a substantial business development for South West Pinnacle Exploration Limited, positioning the company for significant revenue growth over the next four years. The exploration services will be conducted in Rajasthan state, leveraging the company's expertise in mineral exploration activities. The partnership with Hind Metal Exploration Services, backed by Hindustan Zinc Limited, provides a strong foundation for successful contract execution.

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.