Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Deep Industries Ltd (NSE: DEEPINDS) FY 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Paras Shantilal Savla — Chairman & Managing Director
Rohan Vasantkumar Shah — Director & Chief Financial Officer
Analysts:
Rohan Barunwal — Analyst
Manan Shah — Analyst
Unidentified Participant
Sanjay Shah — Analyst
Pankaj Motwani — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Deep Industry Limited Q4FY26 earning conference call. As a reminder, all participant lines will be listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Rohan Barunwal from Aryan Capital Market Ltd.
Thank you and over to you sir.
Rohan Barunwal — Analyst
Hello and good afternoon to everyone. On the behalf of arian Capital Kits Ltd. I thank you all for joining the call into the Q4 and FY36 earnings con call of Deep Industries today from management we have Mr. Paras Savla, the Chairman and Managing Director of the company.
Manan Shah — Analyst
Mr. Rohan Saab, the Director, Finance and CFO of the company. So without any further delay, I’ll hand over the call to the management for their opening remarks. Over to you sir.
Paras Shantilal Savla — Chairman & Managing Director
Good morning everyone and thank you for joining us today to discuss our performance for the year ended 31st March 2026. We sincerely appreciate your continued interest and confidence in Deep Industries. I trust you have had the opportunity to review our financial results, press release and investor presentation which have been made available on the company website and stock exchanges. I am joined today with our Director Finance and CFO Mr. Rohan Shah who will take you through the financial performance for the year ended 31st March 2026 in detail.
After my remarks, let me briefly take you through India’s macroeconomic environment and the evolving dynamics of the energy sector. The oil and gas sector is transitioning from a period of crisis management to a structural rebalancing. While 2026 was dominated by the shock of state of Hulmus closure, FY27 is expected to see a demand rebound as supply flows normalize. According to current projections From EIA and OPEC, global oil demand is said to grow by 1.6 million barrels per day in 2027 reaching a record high of 106.2 to 107.8 million barrels a day.
Asia remains the primary driver of incremental demand but the sentiment is one of energy security overhauls. A massive push is expected in FY27 towards natural gas as a bridge fuel. India and China are aggressively expanding LNG regasification infrastructure to reduce reliance on volatile crude markets. India has rationalized royalty rates for oil and gas companies under the Oil Fields Regulation and Development act to boost growth in the upstream sector. Just this month, May 2026, the government slashed royalty rates to attract global majors and incentivize domestic players like ONGC to tackle difficult fields.
Royalty is now calculated on wellhead price with a fixed deduction 15 to 20%, removing the long standing disputes over poor post production cost reductions. This marks a new era for India’s oil and gas sector. By removing long standing inconsistencies in the royalty framework to increase domestic production by FY27, the Indian government has pivoted from a revenue sharing mindset to an exploration first strategy. The goal is to reverse the decade long decline in crude production which dropped to 28.4 MMT in 202425 and hit the ambitious target of reducing oil import dependency.
The government has launched special CBM rounds in 2025 and 2026. These unconventional sources are expected to start feeding into the national gas grid by early 2027, particularly in the eastern states. One of the most aggressive moves in the 2026 strategy is the shrinking of no go areas, huge swaths of the Indian Exclusive Economic zone that were previously restricted due to defense or environmental concerns. Nearly 1 million square kilometers have been open for seismic surveys and drilling. One Nation, One Grid the strategy isn’t about digging, it’s about moving the product efficiently.
Unified Pipeline Tariff implemented to ensure that a factory in a remote area pays the same gas transport rate as one near a terminal. This incentivizes E and P companies by ensuring there is a steady national market for their guests. India’s gas pipeline Network is crossing 25,000km in 2026 aiming to connect almost every state to the national grid by the end of FY27. With the vision of our Honorable Prime Minister Sri Narendra Modi Ji for Atman Nirbhar Bharat country is actively pursuing investments for its exploration and production sectors as a part of broader USD 500 billion opportunity in its energy infrastructure by 2030.
We are strategically positioned to capitalize on this opportunity, reinforcing our commitment to national energy security and long term value creation. Now I’ll take you through the operational performance highlights and business momentum during FY26. Deep industries continued to deliver consistent operational performance with a sharp focus on safety, execution discipline and asset reliability across all operating sites. Across our core service offerings, onshore drilling workover services, gas processing and production enhancement.
Asset utilization remained healthy during the quarter. Continued policy thrust on expanding exploration acreage, strengthening gas infrastructure and NH. Integrated oilfield services. Our order book remains robust, revolving consistently over 3000 crore providing multi year revenue visibility and reinforcing confidence in our long term growth outlook on the Business Updates with regards to Kandla Energy and Chemicals Ltd. We had acquired the company and the corporate insolvency and resolution process in March 2025.
The intent for this acquisition was to do a backward integration enabling the management to source the chemicals and hydrocarbon fluids in house that was manufactured by Kandla. Kandla was eventually merged with Deep Industries Limited effective from 30 March 2026. The appointed date of the scheme is 31 March 2025. Following the acquisition of Kandla in March 2025, management adopted a conservative accounting approach regarding inherited trade receivables. The company deferred the recognition of certain legacy receivables pending a full recoverability assessment.
We initiated a comprehensive 12 month reconciliation and recovery program to validate the collectibility of these old trade receivables. After a year of intensive collection efforts and due diligence, it was determined that these old trade receivables do not meet our criteria for realization. Consequently, to ensure a transparent and high quality balance sheet as a part of our balance sheet strengthening exercise, the company has elected to write off these legacy trade receivables. This nonrecurring and non cash adjustment reflects our commitment to financial discipline.
This has not impacted our core cash profitability in FY2026. Our net cash flow from the operating activities have been increased to rupees 270 crore in FY26 from rupees 210 crore in FY 2025. In January 2026, a gas leak occurred during workover operations at well Mori 5 in Andhra Pradesh. Under our Production Enhancement contract. Our emergency protocols and robust safety systems enabled a swift response in close coordination with ONGC regulatory authorities. The situation was fully contained within five days.
We are pleased to report that there were no injuries or loss of life. While the incident has resulted into a five to six months shift in our Production Enhancement timeline, keeping safety as our highest priority, our focus remains on resuming production enhancement operations and meeting our long term output targets on strategic priorities. With strengthened leadership team, the company is now set for continued growth for operational excellence and innovation. We are confident of sustainable growth in years to come by capturing new opportunities and deliver long term value to our stakeholders.
In closing, we will continue our efforts on adopting best corporate governance and higher safety standards. Further, I would like to show our gratitude towards our employees for their dedication and professionalism, our clients for their continued trust and our partners for their collaboration. We also thank our investors for their ongoing support and confidence in these industries. With that, I now invite Rohan to take you through the financial highlights for quarter four and FY26. Thank you. Thank you Bharaz VAI Investor friends, thank you for joining the call today.
Happy to share with you Another excellent quarterly and full year performance of Deep Industries Limited reporting growth of more than 50% year on year. All the comparisons are on year on year basis which would provide fair evaluation. As already mentioned by Paras Bhai under exceptional item we have taken write off of around 208 crores of Kannla Legacy trade receivables after intensive recovery process. However, the said write off has not impacted our cash flows with regards to operational revenue for Q4FY26 it has rose to rupees 248 crore up by 49% year on year.
For full year operating revenue jumped by 55% to 891 crore. The strong growth momentum in top line comes from execution of our orders as well as consistent new order flows. Control over costing and operational efficiencies have helped us post 71% year on year growth in EBITDA 206.85 crore in Q4 with EBITDA margin of 39% and for full year EBITDA has shown growth of 44% to 424.82 cr. Net profit for the fourth quarter excluding one time exception item net of tax was at rupees 148.6 crore and for full year net profit excluding one time exception item net of Tax stood at rupees 352.9 crore.
Cash profit for the year stood at rupees 442 crore with cash profit margin of 46%. Our return ratios have also improved significantly in this year our adjusted ROE reached to 21.8% and adjusted ROCE has reached to 19.2%. Our debt to EBITDA ratio has improved and remained very strong at 0.48. Our order book consistently revolving at 3000 plus crore gives us a clear visibility of growth in coming years. Through strategic diversification and expanded overseas operations we have successfully reduced our single client dependence to below 40% of total operating revenue.
As we look ahead to FY27, Deep Industries is well positioned for bright and promising future with excellent growth building our strong performance in recent years, we are confident in our ability to maintain this project this positive trajectory. As far as we said, our success is driven by a solid foundation and operational excellence. A sharp focus on cost optimization and state first commitment to innovation. These strengths enable us to seize new opportunities as they arise in the energy sector.
With this I now open the forum for question and answer. Thank you.
Questions and Answers:
Operator
Thank you. We’ll now begin the question and answer session. Anyone who wishes to ask question may press star and one to ask question on your touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use answered while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assemble. The first question is from the line of Sudhir Beda from Beda family. Please go ahead.
Unidentified Participant
Yeah. Congratulations to all the deep management for the excellent show for the FY26 and also for the taking the or trimming the balance sheet and making it very light.
Paras Shantilal Savla
Hello.
Unidentified Participant
Yeah. See my questions are the whether all the receivable the return of legacy debtors are still pending and if it is pending, what are your views why it has been not been written off?
Paras Shantilal Savla
So we have written off all old trade receivables of Kanja Energy with our extensive effort of recoverability with decided that it is not recoverable anymore. And so we decided to write off those old trade receivables of Kandla. With regards to other legacy trade receivables of Dolphin we have kept them outstanding in our books considering the arbitration awards received in our favor. So out of total 160 crores of dolphin group trade receivables we have a good amount of arbitration award in our favor.
And considering that as well as the client relationship we are very optimistic on recovering all those trade receivables. And that’s how we have kept them outstanding.
Unidentified Participant
Oh, so if you remove that legacy receivable of Dolphin then our debt numbers are quite lower, right? Much lower than. Yeah. And sir, with the kind of order books we have. So what kind of growth do you project for next two years like FY27 and FY28?
Paras Shantilal Savla
With the current trend that is going on we are quite optimistic that this of growth that has been witnessed in past few years should keep continuing. But our sense is that it could be more than 25 to 30%.
Unidentified Participant
Oh great. So that still on the higher base it will continue. You will continue to grow at healthy pace.
Paras Shantilal Savla
Yes.
Unidentified Participant
So that means that FY28 can be see a profit of maybe 450 or 500 kind of. Is it possible?
Paras Shantilal Savla
So with the growing trajectory I don’t see that to be a. To be an issue or to be a concern because the growth is already been Demonstrated for past few years. And with the current situation that has arisen in relation to the crude oil, I think India has put a lot of focus on drilling activities and trying to produce more of oil and gas. Definitely this will enhance our business opportunities. And keeping that in mind, I think that could be quite possible.
Unidentified Participant
Great. And sir, last question. Now recently government has come out with the coal gasification scheme. So do we qualify for that? Do we have a technology for coal gasification? Or it is like can we planning to venture into this
Paras Shantilal Savla
Various areas where companies actively looking into it. One of that. As we had already mentioned earlier that we were exploring the possibilities of green hydrogen project. Having said that, coal, gas, irrigation, geothermal is something that is aligning to our business activities. So going forward we might. So we are already started looking into it and at an approach. We may look into this with a strong commitment as we go forward.
Unidentified Participant
Great, great. And if you allow, sir, last question. So now there is a delay in production announcement scheme. So then will you trim down the projection or you are still that whatever target you have set for FY27 that will be achieved for production sharing contract.
Paras Shantilal Savla
As I mentioned, because of the incident that took place, our activities have been a bit delayed for a quarter or two. Once we. I think we should be regularizing maybe a month or two may more. But going forward, these numbers or the projections that what we have should come around. Maybe it will have an impact of maximum as I mentioned, one or two quarters, but everything else is just intact.
Unidentified Participant
Great. Thank you very much and all the best.
Paras Shantilal Savla
Thank you.
Operator
Thank you. The next question is on the line of Manansha from Manibi. Please go ahead.
Manan Shah
Yeah. Hi. Thank you for the opportunity and congratulations for good set of numbers. My first question was on Dolphin. So in this quarter we have seen a spike in the revenues of Dolphin as well as on the expense side. So can you provide some light of what has transpired in Dolphin in the current quarter?
Paras Shantilal Savla
Yeah. So in Dolphin we had a good quarter in terms of revenue. So revenue has jumped up and along with it some expenditure has also been Rosen. So there was one opportunity ongoing where we had some higher rates in between the contract. And so with that higher rates with gross revenue, the expenditure was also rose to the extent
Manan Shah
Compare some results to the December quarter where we were having net of expense, revenue and margins. The profitability was much healthier. So I mean, taking this opportunity, overall our profitability was impacted rather than being positively impacted.
Paras Shantilal Savla
Yeah. So overall profitability in terms of actual profit would remain intact probably in terms of margin you will have seen a little decline, but if you look from profit perspective, it would be in line.
Manan Shah
Okay. Okay. My second question was in terms of the in the presentation we are talking of getting into higher HP drilling rigs. I believe you’re talking about 2000 HP. We have tried this earlier also via a JV. So this is the same opportunity that we are again re exploring. And what gives you the confidence of qualifying this time?
Paras Shantilal Savla
These standards have been coming in the past, but we believe that as we go forward, the kind of inquiries that could be floated from our clients would be much higher in numbers and we are sure with the qualification we will surely qualify for the same.
Manan Shah
Okay, so this time we’ll be doing it by ourselves or again we are going to be doing it via jv.
Paras Shantilal Savla
Of course it would be via jv.
Manan Shah
Okay, and what is the current bit pipeline?
Paras Shantilal Savla
It’s close to around 5, 600 odd crore.
Manan Shah
Okay. Question was on the PC contract. So there has been a stop production order given by the app over there on the modify well. So I wanted to understand whether the enhancement of production in this particular was how critical was modify when that entire plan and how do we plan to then, you know, get around this stock production order over there.
Paras Shantilal Savla
So this stock production order was given only for this particular well, which is already in a question. So we have already shut off this well for now for all the compliance and regulatory matters. In short span of time we may try to keep this well activated, but that is again in the eventuality or in the passage of some time. So it is difficult for us to really comment on this. But barring this stop order, this was restricted only to that particular well. All our other activities related to other wells and the areas for gas production, they are completely intact and we are in producing gas and we are selling the gas.
Manan Shah
Okay. So despite the stock production for this particular well, we are still confident that once the operations commence, we should be able to get to that run rate of 120 to 150 odd crores from this particular contract.
Paras Shantilal Savla
Yes. So we are already doing some amount of, I mean reasonable amount of gas production. But as I mentioned there is a gap of around one or two quarters for you know, the equipments to be hired and put back to production. So once we have that, it will again regain to what our original projections.
Manan Shah
Okay, My next question was on that one of our rig was damaged, I believe the workover rig. And because of that we had enforced force measure and then we were not able to participate in the workover rig contract. So Any update over there? Are we now able to participate in. In the new workover contracts?
Paras Shantilal Savla
The both the. The fire incident or sorry. Or the incident of the rig that was damaged is a separate issue. But. But those matters are currently under active consideration and they are going through the formalities. So we are very confident that in short spaces of time will have that carry coming in.
Manan Shah
Okay, understood. And my last question is on the overall order book you gave a very good overall macro picture. But when should we see that translating into incremental order flow for the. Because our order book has stagnated at around this 3000 crore odd level for the past 45 quarters. So when can we see the macro demand finally translating into orders and which sector, which of the various work that we do, whether it is drilling or gas compression or gas dehydration or the gas processing, where do you see the potential out of all these sectors
Paras Shantilal Savla
You would have seen these last four or five quarters there was a significant amount of the major order that was coming out through the way of BEC. So if you see even if that considering that 3000 crore of order book, the kind of implementation or the kind of exhibition that is done that has again remained stable. So which means there has been an active flow of orders that. That have come and that’s how the order book has remained same. But having said that, There are new PCs also coming up and as I also mentioned, the new opportunities of the higher capacity rigs and all that put together will definitely give an indication of higher order book.
So maybe in some quarter or two you would see that numbers also coming quite above to what the current levels are.
Manan Shah
Okay, sure. I’ll get back in the queue, thanks.
Operator
Thank you. A reminder to all participants, please restrict yourself to two questions. The next question is from the line of Manan Mandur from World Fort Fund Management. Please go ahead.
Manan Shah
Yes. Am I audible?
Operator
Yes sir.
Manan Shah
Yeah. Thank you so much and congratulations to the team that I had. Three questions, sir. Out of the bid pipeline that we have of 500 to 600 crores, does this also include pec? And if not then how are we looking towards more of PEC contracts?
Paras Shantilal Savla
So this 500 to 600 crore bidding pipeline is consisting of bids already submitted
Manan Shah
With
Paras Shantilal Savla
Regards to pec. One recent tender has came up which is yet to bid. And so to answer to your question, PEC is not included in this bidding pipeline.
Manan Shah
Okay. And that recent tender sir, how much could that be and what is the competition for us?
Paras Shantilal Savla
So as of now it is. It has just came last week only. So we are just evaluating. So in terms of value, probably will not be able to quantify as of now. But yeah, we stand very good chance as we are quite capable of executing this kind of contracts with in house assets and expertise. And tender is also for 15 years.
Manan Shah
Okay, so got it. Thank you. And sir, just two more questions. Sir, do we hedge against the dollar for all of our contracts? Otherwise like you know, it would become beneficial for us if the INR depreciates. Do we do that?
Paras Shantilal Savla
So no, we do not hedge because rupee is constantly depreciating. So at the end of day it is in our interest. And so we have kept those dollar receivable position open.
Manan Shah
Okay, that is really good to hear. And so this last question. Does the price of crude oil affect our order book in different segments like dehydration, compression, pec? Because our PEC contracts are linked with crude oil production. So I think the last PEC contract that we took of ONGC it was around 1400 crores or something. And that I am assuming the crude oil our realization we would have taken at 70 or something. So now it is 100. I understand it can come back down. But overall let’s say, you know, this keeps on hovering 90, 80 or whatever it increases.
So does that also affect our order book and increase our PEC order book?
Paras Shantilal Savla
Yes, definitely. Because in PEC we are having a free gas price mechanism. And as you rightly said, with increasing gas price, this order book can increase upward. With regards to the first question of crude oil impact. So other than PEC in our services business we do not have any direct impact of crude oil price. But yes, sentiment definitely helps us in increasing the demand of services.
Manan Shah
Okay, so gas prices help us not crude oil prices. Correct.
Paras Shantilal Savla
Both in a way. Because our drilling rig drills well for both oil and gas.
Manan Shah
Okay. That is in terms of sentiments. Understood, understood. Just a clarification. Last thing, not a question. One of the previous participant asked. Around FY27 patch could be around 400 crore plus. So just a clarification that. Did I hear it right or wrong?
Paras Shantilal Savla
Yeah. So I think the earlier participant was asking about FY28. But the way we are growing, we are quite optimistic to grow around 25, 30% year on year, even in 27, 28 as well.
Manan Shah
Okay, understood. Thank you so much, sir. That’s it. From my side. All the best.
Paras Shantilal Savla
Thank you.
Operator
Thank you. The next question is from the line of Harisha from Seven Rivers. Please go ahead.
Unidentified Participant
Hello. Yeah. Yeah, good morning sir. So just following back on Dolstin Offshore While our revenue has grown up sequentially from 30 to 45 crores, EBITDA in absolute terms has also come down significantly from 22 to 12 crore. So I mean if you can clarify a bit on that because other expense as at 16 crore is significantly higher. So is there any one off in this quarter? Have we preloaded any expenses which is not expected to recur in subsequent years? How should we look at EBITDA for Dolphin now?
Paras Shantilal Savla
Yes. So with regards to Q4 we had one off item of ECL which is expected credit loss provisioning of around 10 cross. And I think that is one of items. If you will exclude that then margins are in parity.
Unidentified Participant
Okay. Okay. So even if we exclude that our EBITDA is at 22 crore now, now revenue has gone up from 30 to 45 but EBITDA has remained at 22 crore. So what explains that?
Paras Shantilal Savla
Yeah, as I said earlier there was one opportunity where we had charged the gross rate instead of net. And in that our revenue was higher. But parallel expenses were also higher to some extent in some of time period during Q4. And I think that impact is appearing otherwise on absolute number basis they are intact.
Unidentified Participant
No. But if at 30 crore we did 22 crore EBITDA, that incremental 15 crore revenue should have fetched some profit, right? 3, 4 crore even if the expenses were high.
Paras Shantilal Savla
Correct?
Unidentified Participant
No. So see
Paras Shantilal Savla
At the end of day you are dealing with an equipment which needs repairing over a period of time or within the contract period there are some breakdown or repairing works coming on and off. So for us probably we always believe that our performance should be evaluated year on year basis, not on quarter on quarter basis. Because it may happen that in one quarter you have higher repairing expenditure, in one quarter you have a very low repairing expenditure and all. And so ideally for my business in terms of charter hiring, I think year on year evaluation is more effective.
Unidentified Participant
Fair enough. Fair enough. And sir, we did revenue of almost 900 crore. And from what I believe our order info for the year was somewhere around 950 crore. Now since we’re guiding 25% kind of a revenue growth which comes to roughly around 1100 crore, do we expect corresponding increase in the order book inflow as well? So just to keep that rolling revenue visibility intact.
Paras Shantilal Savla
Yes. So we are expecting some good amount of order to come in in current financial year. I think Paras Bhai was just mentioning about higher capacity drilling rigs and new PEC contracts and all. So the order inflow or I would say bidding is exceptionally increasing. Well, and we are Hopeful that this order book will also improve quite a good from this number.
Unidentified Participant
And sir, how do we expect the mix to change going ahead? Are we bidding more for gas processing or more for drilling or it will be more on the IPM side?
Paras Shantilal Savla
As a matter of fact we would try to bid. As opportunity comes within our focus sector it is very difficult to identify that which vertical or which sector would be doing how much. As we speak to us, I think every sector in an oil and gas business is growing in more or less the same symmetry. So I think we have to still wait and see how the numbers are getting. You know numbers are going to reflect or in the order book. So it’s just the order book that we have to keep watching and then probably maybe at the end of the year we can make some assessment on which sector did how much.
Unidentified Participant
Got it, got it.
Sanjay Shah
Thank you so much sir.
Operator
Thank you. The next question is from the line of Sanjay Shah from KSA Securities. Please go ahead.
Sanjay Shah
Good morning gentlemen and congrats on great set of numbers. My question was regarding how much operating leverage is still available from the existing asset before any next major capex cycle.
Paras Shantilal Savla
So with regards to rig segment our assets are 100% utilized and so with any new order coming in we’ll have to do capex of new rig. With regards to gas processing segment we have still availability of around 12, 15%. So till that extent we may use our available fleet and post that we’ll have to go for CapEx.
Sanjay Shah
So what is the management top three strategic priorities for next three years?
Paras Shantilal Savla
If we talk about top three priorities of course PEC is one. Second priority for us is higher capacity drilling rigs and third priority definitely to add fleet into offshore segment as well. So largely these three sectors or three priorities we are working on for coming year.
Sanjay Shah
So sir, what is the roadmap of Dolphin Offshore and our international subsidiary means Offshore Opportunity pipeline in India and overseas? How large is the current market? Opportunity
Paras Shantilal Savla
For offshore market is huge and opportunities are great but we have been selective and picking up the opportunity because we have just entered into offshore segment with one asset only and we wish to add this fleet to further assets one by one. So we would be going watchful and selective while taking those opportunities. Having said so, in market opportunities are immense.
Sanjay Shah
So have we finalized on any capex or guidelines for next three years what we need and in which vertical we need the two. That.
Paras Shantilal Savla
Yeah. So with regard to capex we are doing capex of around 150 crores under PEC this year and we would Be adding a few more assets under rig segment and gas processing segment as well. So more or less for this year we are targeting to have capex of around 300 crores and it will be able to achieve some good orders in offshore segment. Then this CAPEX can increase further.
Sanjay Shah
That’s great sir, very helpful. Thank you very much and best of luck.
Paras Shantilal Savla
Thank you.
Operator
Thank you. The next question is from the line of Darshul Javeri from Crown Capital. Please go ahead.
Rohan Vasantkumar Shah
Hello good evening. Good morning.
Rohan Barunwal
For taking a question. Firstly congratulations on a great set of results. Hopefully I’m audible.
Paras Shantilal Savla
Yes.
Rohan Barunwal
Yeah. Hi sir. So for first question so all the write offs from Kanla we’ve taken right. Like there’s nothing else left for us to take in Canada. Right. Or any other write offs. Okay, okay, okay fair, fair enough sir. And so just wanted to know that so going forward like how do you see our EBITDA margins like a revenue to you given a very good guidance of 25 30% growth. Right. So in terms of EBITDA how do you see that? So how do you see that growing right now?
Paras Shantilal Savla
So EBITDA would be remain on growth trajectory only and probably what we believe is we should be able to maintain EBITDA 44, 45% year on year. It may vary 1 or 2% here and there but no major moment.
Rohan Barunwal
Okay, okay okay fair enough. So fair enough. So and so I just wanted to know like when we are Planning for another 150 crore job gas and big segment so what is the revenue potential from that? Like I want to understand like in terms of do we, are we planning for a bigger round of massive capex or something like a dolphin acquisition that we did. So are we planning to you know go for something like that or your, or what is the you know potential from the current CapEx?
Paras Shantilal Savla
No. So the CapEx of another 150 is pertaining primarily to the equipments majorly rigs and gas processing units which we believe we will be able to secure orders. I for gas processing we are eyeing on one tender which we have already bidded. We may get some good order in coming months. So based on the bidding which we have done we have estimated that around 150 crore kind of capex we may have to incur on getting award of those bids.
Rohan Barunwal
Okay, okay, okay fair enough. So and so just like on an overall basis like I think on our subsidiaries like from Kandla and the Green Hydrogen what do you feel that potential can be right now sir for us like any kind of traction that we’re getting or what is the plan with that part of this business, sir?
Paras Shantilal Savla
Yeah. So Green Hydrogen, we have just entered an MOU and we have started exploring opportunity. So it would be little early to comment on the size of opportunity. So we have just tried to add one more vertical as a part of our diversification exercise and we would be probably in 2/4 or 2, 3/4. We may have some substantial numbers or facts to discuss about that. With regards to Dolphin, of course we are bullish and eyeing on opportunities. So we may add a few more assets in the fleet.
Rohan Barunwal
Okay, fair enough. Answer. Just last question from my answer. In our business is there some seasonality or is it very, you know, constant revenue? Like type of like because so how do we see H1 like because of the war or something, is there like you know, possibility of some contract getting delayed or some execution or you know, how does that work, sir? Like. So in terms of like H1, H2 like it’ll be similar or how does it go for it? So
Paras Shantilal Savla
Yeah for our services business I think there is no similarity.
Rohan Barunwal
Okay, so Q1 can be similar to Q4 like in general.
Paras Shantilal Savla
Yeah, yeah. So I for us our services are 24 by 7365 days. So there is no seasonal effect into it. So almost you can say it would be consistently in same pay.
Rohan Barunwal
Okay, fair, fair. Fair enough. That’s it from my side. Thank you so much.
Operator
Thank you. A reminder to all participants, please restrict yourself to two question. The next question is from the line of Pankaj from Access Capital. Please go ahead.
Pankaj Motwani
Yeah, a very good morning and thanks for all the great results. Lots of congratulations for that. I have some very quick basic questions. On the P and L side I can see a tax expense of a negative number. Is it because of the debtor written off which we have done for that 280 odd crore or is it something else? Whatever it is, is there a benefit which is expected to accrue. Continue to continue to accrue in next financial year also?
Paras Shantilal Savla
Yeah. So that reversal is pertaining to that data reversal and it is linked with that exceptional item.
Pankaj Motwani
Okay. And in continuation to one response you actually give for you exploring the the higher capacity drilling drinks, is there some capex also which possibly will be kind of coming as part of that? If yes, we have some idea on the quantum and is there some funding to plan which we have thought about that.
Paras Shantilal Savla
So yes, if we’ll be able to secure 2000 or so lingric contract we’ll have to go for new rig and capex would definitely be There. So our primary estimate is the REIT can be of around 100 crore or 100220 crore. But that depends on the availability of equipment as well.
Pankaj Motwani
And so you plan to fund this through internal accruals or you plan to do something else as part of that? Yeah,
Paras Shantilal Savla
Internal accrual and debt.
Pankaj Motwani
Okay. And my last question is that out of 3,000 odd crore order book, how much is likely to get executed? Executed in FY27, sir.
Paras Shantilal Savla
So this 3000 crore order book consists of one 15 year contract and rest of the contracts are on an average life of two and a half years. So I would say more than 800 kind of orders would be executed for this financial year. Out of this 3,000 crore and rest, we are expecting some good numbers to add in which will contribute further.
Pankaj Motwani
Okay, that’s great. Sorry, taking liberty of asking last question. One more. One more last question. On the working capital side, on the debtor, we have seen a significant improvement. I assume this has nothing to do with that 208 odd crore written off which we have done irrespective. So is there a plan to kind of do some more stuff on that side so as to bring it to a reasonable level? Level of says 90 odd days?
Paras Shantilal Savla
Yeah. So it has improved definitely with one write off. Because those old trade receivables were unnecessarily showing my working capital cycle large with regards to another some 160 odd crores of old trade receivables. They are still there in the trade receivables but for them we are very much optimistic of recovery. And so we have kept them in those receivables.
Pankaj Motwani
But there is no possibility of provision that bad debts kind of stuff out of those numbers, right?
Paras Shantilal Savla
No. As of now we have a fair amount of visibility because of some arbitration awards already received in our favor. And so we believe that we’ll have a good amount of recovery out of those.
Pankaj Motwani
Thanks a lot for all the answers and all the best for your future endeavors.
Operator
Thank you. The next question is from the line of Rohan Mehta from Strategy. Please go ahead.
Unidentified Participant
Hi sir. Thank you. Am I audible?
Operator
Yes, sir.
Unidentified Participant
First of all, let me compare Dolphin Offshore year on year. Can you give me a revenue trajectory and margin profile year on year rather than just comparing quarter on quarter? I am asking for a guidance for the FY27.
Paras Shantilal Savla
Yeah. So on revenue front, we believe if we’ll be able to secure additional assets then it will grow way high. But with the single assets which we are already operating, we are expecting top line of around 150 crore from this financial year and the current FY27 with EBITDA of almost 60%.
Rohan Barunwal
Perfect. And the second is a bookkeeping question. So our loan to subsidiaries has gone up considerably. Any light that you can throw on that and will that remain that way?
Paras Shantilal Savla
Yeah. So that would gonna reduce it. Because the large chunk has been given to Dolphin for setting up this entire business. So since now Dolphin is earning quite well, those loans would be returning.
Manan Shah
Perfect. Thank you so much, sir. That’s all from me.
Paras Shantilal Savla
Thank you.
Operator
Thank you. The next question is from the line of PATH Agarwal from Western research. Please go ahead.
Manan Shah
Hi. Thank you for the opportunity. My question has been answered. Thank you so much. Thank you.
Operator
Thank you. The next question is from the line of PATH gala an individual investor. Please go ahead.
Unidentified Participant
So firstly congratulations to the entire DEEP team for such exceptional results. My question pertains to the QIB which we were planning earlier. So are we still going to go through with it? Given that the cash flows have improved drastically.
Paras Shantilal Savla
No. So we have decided not to go ahead with qip.
Unidentified Participant
Okay. Okay. And sir, my second question is on the new rigs. If there have been any new rigs deployed in Q4 and like what would be the horsepower and what would be the revenue coming from these new rigs? So
Paras Shantilal Savla
The new rigs mobilized in Q4 were all work over rigs with 100 and 150 ton capacity. So they would have all these three put together would have started contributing more than one and half crore a month. Kind of.
Unidentified Participant
Okay. Okay. So they’ll have not having the exact. So sir, the full quarter will come in the this year. And also sir, one last question. If I could squeeze in the the MOU which we have signed with Advait Green Energy for hydrogen. Maybe if you could comment where the deep would come in in this MoU. And I know you don’t want to comment on the timelines but like the technology part or the.
Paras Shantilal Savla
Yeah. So the intention is to provide balance of plant excluding the main equipment. And we are eyeing on converting this kind of project to be given on charter hire. So we are exploring those opportunities where we can pitch in with our style of work of giving entire project on hiring basis.
Unidentified Participant
Understood. Understood sir. Thank you. And all the best, sir.
Paras Shantilal Savla
Thank you.
Operator
Thank you. The next question is from the line of Shikha Sai and Inducher investor. Please go ahead.
Unidentified Participant
Thank you for the opportunity, sir. So we have this PECS which have come out with two fields. One is Gambit Ahmedabad and the other one Galiki Assam. So both of These are so huge and the main differentiating factor is the development wells. So for Garment, someone has to do 15 wells per year for three years straight and for Galiki like five wells. So are we like eyeing for both of these fields? Because Galiki the oil in place is 2.5 times our Rajmandi asset PEC. And also there’s huge amount of oil in place for Galeki.
Even Gummitch, it doesn’t have gas that much but it has too much of crude oil. So looking at the size of this both fields, I think it’s going to require huge amount of money. So because, because of this new requirement of minimum number of wells for both the field. So are we having that, you know, financial capability to bid for these two fields? Because it will for one year it’s going to exceed more than 100 crores. 150 crores per field or something like that.
Paras Shantilal Savla
As far as the financial capability goes, we have that ability to invest that kind of money into these projects. But having said that, what would be the kind of work program, what would be the kind of investment and what would be a kind of bidding strategy would depend once we have completed our studies. So internally we are looking at, you know, the bids, we are trying to study them out but the answer to that is yes, we are capable of doing it, but that the outcome will only be dependent on once we have completed the complete understanding on geology and how we are going to invest and what, what is the kind of plan that we are going to do.
Unidentified Participant
So the other thing is RAS equipment. I think because of the cgd, I mean the government push after the Iran crisis, I think we have started offering even online compressors. So earlier we were only doing boosters, if I’m not wrong. And the revenue potential for RAJ was around 100cr. Is the revenue potential increased because of this new offering or was it offered even before? Sir?
Paras Shantilal Savla
Yeah, we remain very confident that now online compressor demand has been growing significantly and we are also trying to develop our Mac into the online compressor. We are, we have done one trial of making such compressor. We are under testing of this compressor. So once it’s done and if this demand gets converted from the booster compressors to online, I think we would be, we would definitely be participating in this kind of the requirements.
Unidentified Participant
Great. And the last panel question, sir, can we expect around 950 crores in FY27 the revenue? Sir, the top line
Paras Shantilal Savla
Around
Unidentified Participant
27,
Paras Shantilal Savla
Yeah. So we are expecting growth of around 25 to 30% year on year. So definitely
Unidentified Participant
Yeah. And also there are two drillers, Shivgana Drillers and Vivishal. They’re about to get listed and they are also raising huge amount of money so they might list at a very good rate. So I think congratulations on them listening because many investors will be having someone to compare with. Right. So Shivganda has like around 5 drilling requirement and B. Vishal is into Will intervention and also they are into pec so we might get someone to compare with them. Right?
Paras Shantilal Savla
Yeah, yeah, yeah, yeah. So it was. It is always good to have peer comparison so that we can show how good we are.
Unidentified Participant
Yeah. And the last question regarding advice, how much? I think there
Paras Shantilal Savla
Are a few more participants are in line. If you can just come back in line. Sure,
Unidentified Participant
Sure. Thank you. Thank you.
Operator
Thank you. A reminder to all participants, please restrict yourself to two questions. The next question is from the line of Sudhir Veda from Beda family. Please go ahead.
Unidentified Participant
Thanks for the opportunity again. So my question is like the capex plans are there and we are investing in rigs. So what kind of ROI? We are looking at the new CapEx,
Paras Shantilal Savla
More than 20% kind of the opportunities are shaping up with higher capacity rigs. You will have a good margin as well.
Unidentified Participant
So it is like 20% plus
Paras Shantilal Savla
Correct?
Unidentified Participant
Yeah, that would be great. Thank you. Thank you.
Operator
Thank you. The next question is from the line of Sanjay sir from Prashanta. Please go ahead.
Unidentified Participant
Thank you. If you could just be kind enough to tell us how you think about the company. Not from fiscal 27 or 28 but just from a three to five year perspective. Just given the track record and what we have achieved, how big the company can be in terms of revenue, in terms of business composition, production announcements, some of the other initiatives, if we just lay out a roadmap qualitatively or with numbers that could be really useful.
Paras Shantilal Savla
So Sanjay bhai, the fact is with the kind of the environment that is currently going on for oil and gas, I think it’s very exciting and the sector is getting promising day by day. The services are getting more into play. The various services of all our verticals that we are active into, I believe now government is laying more focus on drilling more wells, trying to produce more oil and gas. So in turn everything, it’s looking quite promising. Our business has already been growing more than 30% year on year.
If you could see this last two or three years. And we tend to believe that this kind of traction will continue for at least. I don’t. But at least we have envisioned for at least three to five years is something that this kind of a growth should keep continuing. Maybe few percentages here and there but barring that, now that government has a great move on this sector, it won’t be surprised. Company, you know, could even get double in next three to five years. You never know that, but that’s quite possible as we, and now as we being the player in the industry we have quite a big market share as far as the onshore operations go.
And now we are also trying to lay our focus into an offshore as well. So that put together along with our growing demand of all our verticals. So we are quite hopeful that in next three to five years company would go significantly from where we are here today.
Unidentified Participant
Understood. And if I were to just ask you one more question, I don’t know whether it’s a fair question or not but amongst the different businesses segments that we have, would it be fair to say that the most exciting would be the opportunities in the production enhancement?
Paras Shantilal Savla
Yes, definitely. Production enhancement would be very exciting because that concept allows, allows the company to grow to produce more oil and gas and get the revenues out of it. So definitely that is one of our bullseye. We are quite, you know, very closely monitoring these opportunities. Opportunities. But having said that entire value chain into the sector is also equally promising because as I had mentioned, we have good amount of market share as far as these services go and therefore any demand that is coming up would give us an advantage to win those kind of projects.
So PEC definitely yes, it is quite a good event. Promising, promising business that we are looking into. But every sector of whatever work that we are doing are equally equally exciting.
Unidentified Participant
Perfect, thank you. If I can just squeeze in one last question to Rohan bhai then. Rohan bhai, about the Prabha Industries receivables. Given the rights issue out there, has that been now in some ways reversed in terms of the cash flow?
Paras Shantilal Savla
Yeah. In fact we have received a good amount of loan return back from Prabha and I think in this year it would be almost nil now.
Unidentified Participant
Perfect. Thank you both. All the best and really exciting. Thank you. Thank you so much.
Paras Shantilal Savla
Thank you.
Operator
Thank you. The next question is from the line of Bhavya Gandhi from Bajaj Alternative Investment limited. Please go ahead.
Rohan Vasantkumar Shah
Yeah. Hi. Thanks for the opportunity. So just wanted to reconcile the number growth number for the next year. If we exclude the PEC, our order book currently stands at 1500 odd crores. And if it’s a average order execution period is 2.5 years, that comes to closer to 600 odd crores versus you are guiding 25 to 30% growth on the current numbers which is around 1100 odd crores. So where is the difference difference in the revenue coming from?
Paras Shantilal Savla
The differential revenue would come from the new orders which we are expecting to get in in first six months of this year where we’ll be able to mobilize those projects probably in first six months.
Rohan Vasantkumar Shah
Okay. So to meet that gap of incremental revenue how much orders do we require?
Paras Shantilal Savla
Of course we are eyeing on some good amount of order conversion and based on those orders only we have considered that. So you can just reverse calculate the balance amount. So there are two, three major contracts we are eyeing on which we believe should be awarded in next month or so. So that will definitely add into our revenue.
Rohan Vasantkumar Shah
Okay, got it. And just one last thing. On the incremental oil exploration is it happening more on the offshore side or on the onsh side? Also we are seeing some traction because if you look at the ONGC they are planning 20 billion dollar capex on the offshore side. Nothing mentioned on the onshore side. So just wanted to understand if there is incremental push on the onshore as well.
Paras Shantilal Savla
I believe the push is equally both onshore and offshore and while it would not be, I don’t know whether, whether that would be any document things that what kind of opportunities are look forward for onshore and offshore. But we being industry are constantly witnessing this that the push is coming in from all the areas and as a matter of fact if you even see that it’s, it’s the, the clients are not only ongc, it’s ONGC also Oil India and now a lot of private players as well. And you know I’m not getting into a comparison of what onshore and offshore is but if you, if you get some time please look into our presentation where we have mentioned that what are the pros and cons?
Not cons but what are the pros of both onshore and offshore which will give you and visibility that why drilling onshore is also something that one cannot miss into this sector.
Rohan Vasantkumar Shah
Got it. Fair enough. Thank you so much Julian. Thank you.
Operator
Thank you. The next question is on the line of path and individual investor. Please go ahead.
Unidentified Participant
So am I audible sir? Hello. Yeah, so first of all good morning and thank you for the opportunity. I’m just having one request like can you from, I mean from next time can you provide a detailed footnote of the order book?
Paras Shantilal Savla
Detailed footnote by me if you can just explain.
Unidentified Participant
Well form I’m not able to hear your voice. Hello, Am I audible?
Paras Shantilal Savla
Yeah, you are audible.
Unidentified Participant
So I’m just asking like can you provide some detail footnote of the order book like many companies provide? Like first there is opening order book for example, then there is some addition, new additions. Then there could be some executions or deletions and then there’s a risk closing order book, like that sort of thing. Can you provide?
Paras Shantilal Savla
Yeah, I think quarter on quarter. We do provide order book but the way you, which you are seeing, we can look into it.
Unidentified Participant
Yeah. So it would be very helpful if you can provide from the next time as many investors follow your order book. So it would be very, really very helpful.
Paras Shantilal Savla
Sure.
Unidentified Participant
Thank you.
Paras Shantilal Savla
Thank you.
Operator
Thank you. As there are no further question from the participants, I now hand the conference over to the management for closing comments.
Paras Shantilal Savla
Thank you everyone for joining this call. It was pleasure interaction with you all. If you have any further queries you can directly connect us. We would be happy to answer all your queries. Thank you.
Operator
Thank you on behalf of ariane Capital Market Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines.