Order Book Or Contract Wins
Expected: Next 2-3 yearsHIGH confidence
What: Order Book: ₹2,967 Cr
“As on date, our order book stood at Rs. 2,967 crores, providing strong revenue visibility for the coming quarters.”
Deep Industries Ltd: Stock Analysis & Fundamentals
Data from 2w agoDeep Industries Ltd (Oil Drilling & Exploration) — fundamental analysis, earnings data, and key metrics. PE: 13.4. ROE: 12.9%. This stock is not currently in the Nifty 500 momentum outperformers list.
Deep Industries Ltd Key Facts
What's Happening
🏛️DII accumulation — stake up 1.1%
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
Next 2-3 yearsHIGH
2. Operating Leverage Inflection
OngoingHIGH
3. Geographical Expansion
FY26MEDIUM
Key Risks
1. Ongoing arbitration with ONGC regarding ₹180 crores claim
MEDIUM2. Dependency on ONGC for approximately 60% of revenue
LOW3. Impact of lower crude oil prices on service demand
LOWSector-Specific Signals
Order Book₹2,967 Cr
Bidding Pipeline₹800 Cr+14.3%
PEC Revenue Contribution₹20 CrNew
Dolphin Offshore Revenue₹30 Cr
Key Numbers
Current Price
₹486
Dividend Yield
0.63%
Market Cap
3.1K Cr
Valuation
N/AWhy Are Deep Industries Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 19, 2026
Operating Leverage Inflection
Expected: OngoingHIGH confidence
What: EBITDA Margin: 47.6%
“once it will start increasing from that particular project, overall margin will improve to that extent.”
Geographical Expansion
Expected: FY26MEDIUM confidence
What: Dolphin Offshore Revenue: ₹30 Cr (Quarterly)
Impact: ₹100 Cr annual top line
“This year, we are expecting to close Dolphin Offshore at around 100 crores of top line in FY26.”
Mandatory Industry Norms
Expected: FY28-FY29LOW confidence
What: Biogas Mandate: 5%
“For compressed biogas, we have the 5% mandate, which is actually voluntary -- I mean, mandatory from FY '28, '29.”
Interest Cost Reduction Deleveraging
Expected: OngoingLOW confidence
What: Debt Level: Low
“we believe that our balance sheet should have the lowest possible leverage... we should have leverage which should be very much in control.”
EBITDA Margin of 47.6%
HIGH confidence
What: EBITDA Margin of 47.6%
“Tight control over operating costs helped us post EBITDA of Rs.110.1 crores in Q3 FY '26, reflecting 46.3% Y-o-Y growth with an EBITDA margin of 47.6%.”
What Are the Key Risks for Deep Industries Ltd?
Earnings deceleration risks from management commentary
Ongoing arbitration with ONGC regarding ₹180 crores claim
MEDIUMTrigger: The matter is currently being contested in the High Court after favorable rulings at arbitration and commercial court levels.
Impact: PAT impact: ₹180 Cr
Management view: Management expects a resolution in the next 3 to 6 months.
Monitor: litigation
Dependency on ONGC for approximately 60% of revenue
LOWTrigger: ONGC is the largest player in the Indian oil and gas sector, making high concentration inevitable for service providers.
Management view: Diversifying into private clients (Vedanta, Selan) and overseas markets to reduce dependency.
Monitor: regulatory
Impact of lower crude oil prices on service demand
LOWTrigger: Service contracts are generally fixed-price and long-term, insulating the company from short-term price volatility.
Management view: Focus on energy-deficient India where production activity continues regardless of global prices.
Monitor: commodity
What Is Deep Industries Ltd's Management Saying?
Key quotes from recent conference calls
“all put together we are expecting growth of another 35% to 38% kind of growth on year-on-year basis in next financial year as well. [Previous Revenue Growth FY27 guidance]”
“margin we believe it should improve a bit going forward and we are expecting our EBITDA margins to grow upwards beyond 45% in coming quarters. [Previous EBITDA Margin guidance]”
“So as per original plan, it should start contributing from FY '27... we can achieve some amount of backward integration. [Initiative: Kandla Energy Commercialization]”
“With regards to QIP, we have just paused that process as of now, and we are not going ahead with it. [Initiative: QIP Fundraise Pause]”
What Did Deep Industries Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹221.5 Cr
YoY +43.1%QoQ +0.2%
Why: Growth was driven by the addition of new assets into operation and the commencement of the production enhancement contract (PEC) project.
Revenue remained flat on a sequential basis despite the new PEC contract contribution.
EBITDA
₹110.1 Cr
YoY +46.3%Margin 47.6%
Why: Margin expansion was supported by tight control over operating costs and the deployment of high-margin assets in other verticals.
EBITDA margins improved slightly from 46.6% in Q2 to 47.6% in Q3.
PAT
₹71.3 Cr
YoY +49.8%QoQ +0.1%
Why: Profit growth tracked revenue and EBITDA expansion, benefiting from the full-quarter contribution of offshore services.
PAT growth remains consistent with the company's trajectory of 35%+ annual growth.
Other Highlights
• 9M FY26 revenue reached ₹642 crores, a 57% year-on-year increase.
• 9M FY26 PAT stood at ₹204.3 crores, showing 59.7% year-on-year growth.
• A gas leakage incident at the Rajahmundry field was contained within 5 days with no casualties.
What Sector Metrics Matter for Deep Industries Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Order Book
₹2,967 Cr
QoQ -2.7%
Why: Slight decline due to execution of existing orders and lower order wins (₹140 Cr) during the quarter.
Bidding Pipeline
₹800 Cr
YoY +14.3%QoQ +14.3%
Why: Increased bidding activity for new projects across various oil and gas producers.
PEC Revenue Contribution
₹20 Cr
YoY New
Why: Initial phase of the production enhancement contract at Rajahmundry field.
Dolphin Offshore Revenue
₹30 Cr
Why: Full quarter contribution from offshore assets like the barge and anchor tugs.
Gas Price Realization (PEC)
$7.5
Why: Realized price for gas produced under the production enhancement contract.
ONGC Revenue Concentration
60%
New Rigs Deployed
6 rigs
Why: Expansion of the operating fleet to drive top-line growth.
PEC Expected EBITDA Margin
50%
Why: High-margin nature of production enhancement services.
What Is Deep Industries Ltd's Management Guidance?
Forward-looking targets from management for FY27
Revenue Growth Target
30%
Capex Plan
₹600 Cr
Revenue Outlook
30% to 35% growth
Margin Outlook
REAFFIRMED
Capex Plan
₹600 Cr
Gas processing plants, rigs, and PEC contract requirements.
Management Tone: BULLISH
Guidance Changes
LOWERED
QIP Fundraise: ₹300 Cr → Paused/Cancelled
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
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Frequently Asked Questions: Deep Industries Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Deep Industries Ltd's latest quarterly results?
Deep Industries Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +47.9%
- Revenue Growth YoY: +43.2%
- Operating Margin: 45.0%
What is Deep Industries Ltd's current PE ratio?
Deep Industries Ltd's current PE ratio is 13.4x.
- Current PE: 13.4x
- Market Cap: 3.1K Cr
- Dividend Yield: 0.63%
What is Deep Industries Ltd's price-to-book ratio?
Deep Industries Ltd's price-to-book ratio is 1.6x.
- Price-to-Book (P/B): 1.6x
- Book Value per Share: ₹302
- Current Price: ₹486
Is Deep Industries Ltd a fundamentally strong company?
Deep Industries Ltd's fundamental strength based on key financial ratios
- Return on Capital (ROCE): 12.0%
Is Deep Industries Ltd debt free?
Deep Industries Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹205 Cr
What is Deep Industries Ltd's return on equity (ROE) and ROCE?
Deep Industries Ltd's return ratios over recent years
- FY2023: ROCE 8.0%
- FY2024: ROCE 10.0%
- FY2025: ROCE 12.0%
Is Deep Industries Ltd's cash flow positive?
Deep Industries Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹210 Cr
- Free Cash Flow (FCF): ₹-38 Cr
What is Deep Industries Ltd's dividend yield?
Deep Industries Ltd's current dividend yield is 0.63%.
- Dividend Yield: 0.63%
- Current Price: ₹486
Who holds Deep Industries Ltd shares — promoters, FII, DII?
Deep Industries Ltd's shareholding pattern (Mar 2026)
- Promoters: 63.5%
- FII (Foreign): 1.8%
- DII (Domestic): 1.1%
- Public: 33.6%
Is promoter holding increasing or decreasing in Deep Industries Ltd?
Deep Industries Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 63.5% (Mar 2026)
- Previous Quarter: 63.5% (Dec 2025)
- Change: 0.00% (stable)
Is Deep Industries Ltd a new momentum entry or an established outperformer?
Deep Industries Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Deep Industries Ltd?
Deep Industries Ltd has 6 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins — Provides multi-year revenue visibility and reinforces confidence in long-term growth.
- Operating Leverage Inflection — Addition of new assets and PEC ramp-up will improve overall margins as volumes increase.
- Geographical Expansion — Deployment of assets like the Prabha barge in African waters and HF Hunter in Argentina.
- Mandatory Industry Norms — Government mandates for compressed biogas will create service demand for compression and dehydration.
What are the key risks in Deep Industries Ltd?
Deep Industries Ltd has 3 key risks worth monitoring
- [MEDIUM] Ongoing arbitration with ONGC regarding ₹180 crores claim — The matter is currently being contested in the High Court after favorable rulings at arbitration and commercial court levels.
- [LOW] Dependency on ONGC for approximately 60% of revenue — ONGC is the largest player in the Indian oil and gas sector, making high concentration inevitable for service providers.
- [LOW] Impact of lower crude oil prices on service demand — Service contracts are generally fixed-price and long-term, insulating the company from short-term price volatility.
What did Deep Industries Ltd's management say in the latest earnings call?
In Q3 FY26, Deep Industries Ltd's management highlighted
- "all put together we are expecting growth of another 35% to 38% kind of growth on year-on-year basis in next financial year as well. [Previous Revenue..."
- "margin we believe it should improve a bit going forward and we are expecting our EBITDA margins to grow upwards beyond 45% in coming quarters. [Previ..."
- "So as per original plan, it should start contributing from FY '27... we can achieve some amount of backward integration. [Initiative: Kandla Energy C..."
What is Deep Industries Ltd's management guidance for growth?
Deep Industries Ltd's management has provided the following forward guidance for FY27
- Revenue growth target: 30%
- Margin outlook: REAFFIRMED
- Capex plan: ₹600 Cr for Gas processing plants, rigs, and PEC contract requirements.
- Management tone: bullish
- Milestone: [LOWERED] QIP Fundraise: ₹300 Cr → Paused/Cancelled
What sector-specific metrics matter most for Deep Industries Ltd?
Deep Industries Ltd's most important sub-sector-specific KPIs from the latest concall
- Order Book: ₹2,967 Cr (QoQ -2.7%) — Slight decline due to execution of existing orders and lower order wins (₹140 Cr) during the quarter.
- Bidding Pipeline: ₹800 Cr (YoY +14.3%) (QoQ +14.3%) — Increased bidding activity for new projects across various oil and gas producers.
- PEC Revenue Contribution: ₹20 Cr (YoY New) — Initial phase of the production enhancement contract at Rajahmundry field.
- Dolphin Offshore Revenue: ₹30 Cr — Full quarter contribution from offshore assets like the barge and anchor tugs.
- Gas Price Realization (PEC): $7.5 — Realized price for gas produced under the production enhancement contract.
- ONGC Revenue Concentration: 60%
Is Deep Industries Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Deep Industries Ltd may be worth studying
- Cash flow is positive — CFO ₹210 Cr
What is the investment thesis for Deep Industries Ltd?
Deep Industries Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Key risk: Ongoing arbitration with ONGC regarding ₹180 crores claim
What is the future outlook for Deep Industries Ltd?
Deep Industries Ltd's forward outlook based on current data signals
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: Ongoing arbitration with ONGC regarding ₹180 crores claim
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.