The shares of this small cap company majorly engaged in in the business of Oil and Gas field services which includes providing Air & Gas Compression Services, Drilling and Workover Services, Gas Dehydration Services, were in focus after the expands into multiple businesses
With the market capitalization of Rs. 4,827 Crores, the shares of Deep Industries Ltd were trading at around Rs. 754 per share which is 9 percent discount from its 52 week high of Rs. 827 per share and is trading at a P/E of 11.6 whereas industry P/E stands at 17.8 and 5 year median P/E stands at 15.3
A Business That Is Scaling Up
The company has clearly improved its business scale. Revenue in FY26 has gone up to ₹890.71 crore from ₹576.13 crore, thereby registering an increase of about 55% year-over-year. The company’s business in different oil and gas service segments such as gas compression, gas dehydration, drilling and workover rigs, gas processing, production stimulation and offshore operations has helped achieve this success.
Profit Growth Adds to the Story
The more interesting part about the growth is the fact that the profitability growth has outpaced the growth in revenue. The EBITDA for FY26 was at 61%, totaling ₹424.82 crore, while the cash profit grew by over two times to reach ₹442.12 crore from ₹218.53 crore recorded the previous year. The EBITDA margin was also up at 44.24% against 43.35% previously.
Growth Has Continued Into FY27
The trend has been sustained in the current fiscal year as well. For Q1 of FY27, there has been a rise of 39.8% in revenue from last year. Similarly, there has been an increase of 38.7% in EBITDA and 44.5% in PAT in comparison to last year. There have been record revenues and profits for the quarter.
Order Book Provides Visibility
Another significant element of the growth narrative is the order book. The company ended the first quarter of FY27 with an order book of ₹3,047 crore against the starting order book value of ₹3,007 crore. In the first quarter, the company won orders worth ₹319 crore and delivered ₹279 crore. The large order book provides visibility in terms of income from their current projects.
Multiple Businesses Open New Growth Avenues
The company does not rely on a single source of income either. Its services span multiple areas within the oil and gas value chain, and the offshore division of the company presents itself as yet another source of growth for the firm. It has even received a 15-year production improvement contract worth ₹1,402 crore from ONGC, thus giving itself another source of long-term income.
Conclusion:
Deep Industries is gradually building a broader presence across the oil and gas services value chain, rather than relying on a single business segment. Its healthy order book, long-term ONGC contract and continued execution provide visibility for the coming periods. The relatively lower P/E compared with the industry and its five-year median also adds to the investor angle. Going ahead, execution across these newer businesses will remain key to sustaining the momentum.