Deep Industries Q2FY26 Concall Decoded: “Drilling Deep, Cash Deeper — The Gas Never Ends”

1. Opening Hook

While oil prices wobbled and global explorers sulked, Deep Industries decided to hit the gas — literally. The company’s rigs are sailing in from China, its production contracts are gushing, and the CFO casually dropped 70% growth like it’s a routine day at the refinery.

With ₹3,050 crore in order book and 46% EBITDA margins, Deep is making the exploration business look like a mutual fund SIP. And now, with a ₹300 crore QIP fundraise in the pipeline, the balance sheet’s about to get bulked up like a rig on steroids. Keep reading — this call has more pressure than an offshore gas compressor.

2. At a Glance

• Revenue ₹221 Cr (+69% YoY): CFO insists it’s “execution,” not gas prices doing the heavy lifting.
• EBITDA ₹113 Cr (+75% YoY): 46.6% margins — enough to make IT services jealous.
• PAT ₹71 Cr (+71% YoY): Profits flowing smoother than a fresh pipeline.
• Order Book ₹3,050 Cr: That’s not backlog, that’s bragging rights.
• H1 Revenue ₹420 Cr (+65% YoY): Someone’s definitely found the sweet spot between rigs and reality.
• Cash Flow: “Strong.” Translation: CFO sleeps peacefully.

3. Management’s Key Commentary

“India’s oil and gas sector continues to witness renewed momentum.”
(Translation: Finally, oil is sexy again.) 😏

“EBITDA margins remain around 46%.”
(Translation: We print cash like ONGC prints tenders.)

“Order book stands at ₹3,050 crore.”
(Translation: Even our Excel sheet is tired of adding zeroes.)

“Two rigs arriving from China — one in December, one in Q4.”
(Translation: Our imports are drilling faster than your exports.)

“We expect 35%-38% growth next year.”
(Translation: The only thing slowing us down is gravity.)

“Fundraise of ₹300 crore planned via QIP.”
(Translation: Because cash is king and leverage is evil.)

“Dolphin Offshore to clock ₹100 crore revenue, with 80% EBITDA.”
(Translation: Margins higher than the crude fumes offshore.)

4. Numbers Decoded