At a Glance
Deep Industries, the underdog of oilfield services, just threw a surprise party for investors. Q1 FY26 revenue ₹200 Cr (+62% YoY) and profit ₹62 Cr (+59% YoY) sent the stock flying 8.5% to ₹522. With an OPM of 41%, margins are fatter than the CEO’s bonus. But, with 373 debtor days, their cash collection is slower than your broadband in a storm.
Introduction
From compressing gas to drilling profits, Deep Industries has been quietly growing while its peers struggle. However, last year’s -₹79 Cr loss raised eyebrows. Now, the company is back in the green with a vengeance, acquiring new subsidiaries and tweaking its business objects. But is this rally sustainable or just hot air from compressors?
Business Model (WTF Do They Even Do?)
- Services Offered:
- Air & Gas Compression
- Drilling & Workover
- Gas Dehydration
- Integrated Project Management
- Clientele: Oil & gas giants needing outsourced field services.
Roast: They basically rent out expensive machines and manpower to oil firms and hope no one forgets to pay for 373 days.
Financials Overview
Q1 FY26:
- Revenue: ₹200 Cr (+62% YoY)
- EBITDA: ₹82 Cr (OPM 41%)
- Net Profit: ₹62 Cr (+59% YoY)
- EPS: ₹9.2
Commentary: Strong recovery post last year’s losses. Margins remain industry-leading.
Valuation
