Stock Report

Deep Industries Q1 FY27 Net Profit Rises 18.3% YoY to ₹55.18 Crore as Operating Margins Strengthen

Posted On : 2026-07-30 23:02:13( TIMEZONE : IST )

Energy infrastructure and oilfield services provider Deep Industries Limited has released its unaudited standalone financial results for the first quarter ended June 30, 2026. Driven by controlled operating expenses and operational efficiencies, the company reported an 18.3% year-on-year growth in net profit, reversing from a loss-making previous quarter that was impacted by exceptional items.

Key Financial Highlights (Q1 FY27 vs Q1 FY26)

Revenue from Operations: Stood at ₹17,177.55 lakh (₹171.78 crore) for Q1 FY27, maintaining a steady performance compared to ₹17,259.68 lakh reported in the corresponding period of the previous year (Q1 FY26) and ₹17,162.19 lakh in the preceding quarter (Q4 FY26).

Total Income: Reached ₹18,560.69 lakh, supported by ₹1,383.14 lakh in other income, compared to ₹18,663.98 lakh in Q1 FY26.

Profit Before Tax (PBT): Rose 18.1% YoY to ₹7,382.00 lakh (₹73.82 crore), up from ₹6,248.96 lakh in Q1 FY26 and ₹5,986.34 lakh (before exceptional items) in Q4 FY26.

Net Profit After Tax (PAT): Expanded 18.3% YoY to ₹5,517.82 lakh (₹55.18 crore) compared to ₹4,664.45 lakh in Q1 FY26. Sequentially, PAT rebounded strongly from a net loss of ₹(4,988.72) lakh recorded in Q4 FY26 following exceptional item charges in that quarter.

Total Comprehensive Income: Stood at ₹5,523.52 lakh for the quarter after accounting for ₹5.70 lakh in other comprehensive income, compared to ₹4,664.45 lakh in Q1 FY26.

Earnings Per Share (EPS): Basic and diluted EPS improved to ₹8.62 per share (face value of ₹5/- each), up from ₹7.29 in Q1 FY26 and ₹(7.79) in Q4 FY26.

Operational Expense Profile

Total expenses for Q1 FY27 dropped 10.0% YoY to ₹11,178.69 lakh, compared to ₹12,415.02 lakh in Q1 FY26 and ₹12,192.28 lakh in Q4 FY26. Reduced input costs were the primary catalyst for the operational margin expansion:

Cost of Materials Consumed / Stock Purchase: ₹7,350.15 lakh (vs ₹8,632.31 lakh in Q1 FY26)

Employee Benefits Expenses: ₹1,771.91 lakh (vs ₹1,605.09 lakh in Q1 FY26)

Depreciation & Amortization Expenses: ₹1,070.60 lakh (vs ₹1,050.04 lakh in Q1 FY26)

Other Expenses: ₹593.06 lakh (vs ₹708.59 lakh in Q1 FY26)

Finance Costs: ₹392.97 lakh (vs ₹418.99 lakh in Q1 FY26)

Tax Provisions & Balance Sheet Metrics

Tax expenses for the quarter totaled ₹1,864.18 lakh, comprising ₹1,155.71 lakh in current tax and ₹708.47 lakh in deferred tax charges, compared to total tax expenses of ₹1,584.51 lakh in Q1 FY26.

Deep Industries maintains a paid-up equity share capital base of ₹3,200.00 lakh consisting of equity shares with a face value of ₹5 each. Other equity stood at ₹1,63,123.38 lakh as per the audited balance sheet for the full year ended March 31, 2026.

Commenting on the performance, Mr. Paras S. Savla, Chairman and Managing Director, Deep Industries Ltd. expressed Deep Industries Ltd has begun FY27 with remarkable momentum, building on our strategic achievements and operational excellence. This quarter we have secured key contracts for HP Compression of lift gas at Assam, and Contract for Charter hiring of natural gas compression services at Ahmedabad along with various other contracts strengthening our diversified portfolio.

The global energy landscape is undergoing a pivotal shift. What we are seeing today is the beginning of a structural rebalancing across global energy supply chains. Driven primarily by Asian economies, global oil demand is projected to rebound sharply through FY27. However, the overarching theme across boardrooms is clear - Energy Security over short-term expediency.

As a leader covering over 70% of the post-exploration service value chain spanning gas compression, gas dehydration, gas processing facilities, Workover Rigs Services, Drilling Rig Services, Integrated Project Management Services, Production Enhancement services and offshore support these macro shifts and policy overhauls act as direct structural tailwinds for our core business.

These milestones, combined with robust activity across our core segments, underscore our commitment to deliver innovative, value-driven solutions. With a strong order book, efficient execution, favorable policy environment and rising energy demand, we are well positioned to drive sustainable growth and create long-term value for our stakeholders. As we move forward, our commitment to rigorous corporate governance and uncompromising safety standards remains our guiding priority.