Deep Industries Ltd (NSE: DEEPINDS) Q3 2025 Earnings Call dated Jan. 30, 2025
Corporate Participants:
Paras Savla — Chairman & MD
Rohan Shah — CFO and Whole Time Director
Analysts:
Mukesh Panjwani — Analyst
Siddhant Shah — Analyst
Raghu Garimella — Analyst
Nirvana Laha — Analyst
Vimox Shah — Analyst
Pankaj Motwani — Analyst
Manan Shah — Analyst
Sahil Jain — Analyst
Shaurya Punyani — Analyst
Unidentified Participant
Santanu Saikia — Analyst
Gaurav Sachdeva — Analyst
M N. Kumar — Analyst
Srikar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Deep Industries Limited Q3 and Nine Months FY ’25 Earnings Conference Call hosted by AdFactors PR. From the management, we have Mr Paras Savla, Chairman and Managing Director; and Mr Rohan Shah, Director, Finance and CFO, to take the discussion forward. I now hand the conference over to Mr Paras Savla from Deep Industries. Thank you, and over to you, sir.
Paras Savla — Chairman & MD
Thank you. Good evening, everyone. It gives me immense pleasure to speak to you all today as we present our 3rd-quarter and nine-month performance for the financial year 2025. Thank you very much for joining this call. I hope you all would have reviewed our quarter three and nine months FY ’25 results and investor presentation, which are available on our website and on the exchanges. I’m also joined by Mr Rohan Shah, Director of Finance and CFO, who will assist me in answering your queries. After my brief, we will share the financial performance of the company in detail and we will then take your questions.
Globally, the energy landscape is witnessing a shift with the election of Mr Donald Trump as President of United States. His administration is pro-oil and gas drilling policies are expected to accelerate exploration activities worldwide. Additionally, the imposition of new sanctions on Russia has impacted crude imports for India, further emphasizing the need for in-house oil drilling and production capabilities. These developments reinforce the importance of bolstering domestic energy resource and infrastructure.
Mirroring the fortunes of the sector in US, India too is witnessing slew of reforms intended to draw in private and foreign companies to the upstream sector. The 3rd-quarter of this financial year saw pivotal reforms in the oil and gas sector, most notably the introduction of Oil Fields Regulation and Development Act amendment bill passed in Rajasaba in December 2024. Originally enacted in 1948, the updated Legislation 6 to modernize India’s energy framework, aligning it with global standards. By establishing a streamlined regulatory structure, the bill aims to boost investor confidence, minimize bureaucratic hurdles and promote initiatives such as hydrogen production and carbon capture.
Key measures include stable petroleum leases, a formalized dispute resolution process and incentives for enhanced oil recovery techniques. These reforms are expected to lower-cost, simulate domestic exploration and production and improve the viability of marginal oilfields. By fostering innovation and attracting global investment, the bill could unlock untapped hydrocarbon reserves, strengthen domestic capabilities and fortify India’s energy security.
As we look-ahead, our focus remains on enhancing operational efficiency, leveraging technology and pursuing opportunities that align with India’s evolving energy needs. We continue to explore opportunities in-production enhancement contracts, charter hiring of entire gas processing facilities and integrated project management services, the three segments that are expected to drive our growth over next few years. We believe the ongoing policy support coupled with favorable market dynamics provides a strong foundation for sustained growth in the sector.
With this, I now invite Mr Rohan Shah to provide a detailed overview of the financial performance for Q3. Following his remarks, we will be happy to address any questions you may have. Thank you.
Rohan Shah — CFO and Whole Time Director
Thank you. Investor friends, thank you for joining the call today. Happy to share with you another stellar quarterly and Nine-Month performance of Deep Industries Limited. All the comparisons are on year-on-year basis, which would provide fair evaluation.
Consolidated revenue from quarterly and nine months operations rose by 47% to INR154.8 crores and 33% to INR408.9 crores. The strong growth momentum in top-line comes from execution of orders as well as consistent new order flows. Tight control over costing and operational efficiencies have helped us post 53.1% growth in EBITDA to INR75.3 crore in-quarter three with EBITDA margin of 46.1%.
For nine months, EBITDA has shown growth of 37.9% to INR201.3 crores. We have been maintaining margin in this range of 46%, providing us a decent cash-flow to strategize our future growth trajectory. Net profit for the 3rd-quarter and nine months stood at INR47.6 crores, up by 70.4% and INR127.9 crores, up by 44.6%. Our order book has grown to INR2,701 crore, 125% on year-on-year basis. The financial year 2025 is shaping up to be a pivotal year with the company on-track to achieve its highest-ever revenue, EBITDA and net profit. Supported by favorable government initiatives in energy sector, we are well-positioned to sustain our growth momentum.
Our 3rd-quarter performance has further reinposed our financial strength, driven by robust revenue growth and improved profitability. By maintaining a disciplined focus on cost optimization and operational efficiency, we remain committed to delivering consistent value to our stakeholders. With this, I now open the forum for question and question-and-answer. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touchstone phone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. our first question comes from the line of Mukesh Panjwani from WC Securities. Please go-ahead.
Mukesh Panjwani
Yeah. Hi, sir. Am I audible? Yeah. Congratulations, sir, for great set of numbers. My first question is on the status of Baj. Like what is the status right now? And have we secured a long-term contract or still we are exploring opportunities in it?
Paras Savla
So as we had updated the status on BARD, we have completed almost, I believe, more than 95% of the work. Unfortunately, we are waiting for only one or the — one of the equipment, which is a little critical equipment that has to come from US and that has taken a reasonably a little long-time. But however, we maintain our status that we should be able to get certain portion of revenue for this quarter. Barring that it has got a little delayed, but now it’s completely now on-track.
Mukesh Panjwani
Okay. So by when can we see the deployment?
Paras Savla
As I mentioned, we should be happening only in this running quarter. So we’ll definitely be having the glimpse of the revenues coming in for this quarter.
Mukesh Panjwani
Okay. And what kind of revenues now we should expect now the market scenario has changed. So still we can expect the last quotation you have given us or we should expect something higher?
Paras Savla
We purposely kept these area open keeping because the markets are very dynamic. We had an opportunity to close the deal, but we thought that it is more feasible for us to wait by the time we have our barge ready. So just to comment on what kind of numbers would be — would be very difficult because we are also trying to explore if we are able to get a little higher rates to what we had anticipated. But having said that, we do not have any confirmative answer to that, that whether it would be in the same range or would be a little higher.
Mukesh Panjwani
Okay. Okay. Okay. And my next question is, sir, about our new vertical, that is production and contract. So how this vertical can become?
Paras Savla
So this vertically basically is in operation we have we are given around eight of oil and gas fills in the area of Ralumundry and there is certain amount of gas production which is happening today in the in the block currently what ONGC is operating. And the nature of the block is it is a — the production has declined for various or several reasons. Our job is largely to undertake — our job is largely to undertake that field, enhance the production and then we have a sharing model of whatever the production that is enhanced from the levels that we have taken. So we are very, very optimistic about this block about the production and the potential that we have reviewed and we think it is going to become one of the largest growth drivers as we go-forward.
Mukesh Panjwani
Great, great, sir. And any bidding pipeline for this kind of context that you can share?
Paras Savla
We have not bidded any PCs as of now, but there are few pieces that have already come in and there are many more to come in. So our focus definitely would remain on bidding this kind of an opportunities, which gives the clarity over a period of 10, 15 years or plus. And with the kind of experience and the expertise that we have in operating the fields with the kind of equipments that we are running currently in the market, we have an upper-end to optimize the best out of these wheels.
Mukesh Panjwani
Okay. Okay. Okay. And sir, what kind of revenues can we expect from this ONGC PEC contract in FY ’26.
Paras Savla
So see we are taking handover of this particular field by end of this quarter and we’ll start operating on this and will start applying our expertise to increase the production. So primarily for FY ’26, we are anticipating revenue of around six months or so out of this PEC. So initial revenue would not be that great, but from FY ’27 onwards, we can expect more than INR100 crore out of it, more than INR100 crores.
Mukesh Panjwani
Okay, sir. And sir, in upcoming years, what kind of growth we can expect.
Paras Savla
We are all set for growth trajectory based on our existing order book and the new orders, which we are expecting to be awarded, we are expecting growth of more than 30% year-on-year for next three years.
Mukesh Panjwani
Okay. That’s great, sir. That’s all from my side. Thanks a lot and all the best.
Operator
Thank you. The next question comes from Sudan Shah from Optimum Securities. Please go-ahead.
Siddhant Shah
Can you hear me? Hello
Operator
You’re sounding a bit muffled if you’re using the speakerphone, may we request to use the handset, please?
Siddhant Shah
Yeah, I’m actually using the handset. Is this better?
Operator
This is much better. Please go-ahead.
Siddhant Shah
Yeah, hi. Yeah. So I just wanted to understand a little bit more on the growth trajectory apart from the acquisition like apart from the bars and the production sharing contract, how much organic growth are we expecting from our business.
Paras Savla
So organically, we are growing almost 18% to 19% year-on-year. So my traditional services both in natural gas and integrated project segment, they are growing with around 19% to 20% year-on-year.
Siddhant Shah
Okay. And like this production and you mentioned that the production enhancement contracts will come going ahead. Will the size of these contracts be similar to the one that we won right now? What will be the opportunity size in that segment?
Paras Savla
Sorry, I cannot hear your question clearly.
Siddhant Shah
Is it better?
Operator
Yeah, this is better, sir.
Siddhant Shah
Okay. Yeah. So just wanted to check the production sharing contract that we won recently and we are expecting this segment to grow going ahead. So the order that we win in this segment, the nature of the order, will it be as large as the order that we won recently or are there going to be smaller orders in this segment also?
Paras Savla
There could be a mix of the orders depending on the kind of field. So it could be even smaller and it could be even much larger to the one that we have got. So that is basically dynamic. It cannot be static. It cannot be the same numbers because the fields are different and the activities involved could also be different.
Siddhant Shah
Okay. Okay. And just on a ballpark timeline by when can we expect these — these kind of orders to start coming in? I mean, maybe next FY ’26 onwards, can we expect more of these orders or it will be more further on ahead.
Paras Savla
As I mentioned, there is a huge thrust on government to enhance the oil and gas activities. Having said that, these bringing out these PCs has already been now the process that already started. So it’s about the timing. I believe and it’s my expectation that within a year, we can see some of such pieces coming out and getting above it. But to time-out exactly when that is going to happen, it would be a little difficult.
Siddhant Shah
Got it. So just approximately in a year’s time, maybe there should be some movement is what you’re expecting, right?
Paras Savla
And it can be a good guesstimate.
Siddhant Shah
Okay. Okay. Thank you. That’s all from my side. Thank you.
Operator
Thank you. Thank you. The next question comes from Ragu from Travest Capital. Please go-ahead.
Raghu Garimella
Hi, congrats on a great quarter. Most of my questions are answered, but I just want to ask a kind of a long-term question for the next two, three and above years. Are we going to enter into fields like shale and coal bit methane now because it is coming under a common license. So with the present what we have, can we do the shale exploration, what is your view on this particular topic.
Paras Savla
So those areas are something that India definitely is going to discover in certain period of time. And I don’t see that opportunities to be very far because India has is poised to increase the energy sector by ramping-up more-and-more of these activities. So definitely CBM or Sale being an unconventional products or unconventional ways of drilling would become more popular. And I think if you talk about CBM today, I think it’s — it’s already in the play. I mean, there are big companies already producing a huge amount of quantities, including ONGC in Northeast Belt. So I think shale is not very far. We are just there.
Raghu Garimella
How far can we maybe two, three years of — I’m talking about specifically the capability being developed for.
Paras Savla
So the methodology of drilling either the natural gas wells or oil and wells and the CBM or maybe the theory remains the same. So there is nothing in terms of having an extra ability or a capability to drill these kind of wells or do these kind of activities, that is absolutely doable and we can easily do this.
Raghu Garimella
Okay. Right now, we have the capability to even go for share gas.
Paras Savla
Oh, yes, absolutely.
Raghu Garimella
That’s great. I hope we get some orders there. Thank you. Have a great quarter.
Operator
Thank you. The next question comes from Nirvana Laha from Holdings. Please go-ahead.
Nirvana Laha
Hi, thank you, sir for the opportunity and congratulations on yet another very good quarter. Sir, all my questions are regarding your subsidiary Dolphin. So in the last con-call, sir, we had spoken about Dolphin’s revenue potential for H2. And Rohan, sir, you had said that $2 million to $3 million USD revenue should be possible in H2. But this quarter itself, we seem to have booked about $3.5 million USD. So if you can give some outlook for Q4 for Dolphin revenues without Prabha, what kind of revenues can we booked? And without Prabha, next whole year for Dolphin, what kind of numbers are you looking at? Do we already have an order book? Some clarity on this, please?
Rohan Shah
Yeah, hi. So in Q4 also, we can look for revenue of around INR2 million, INR3 million in without the barge revenue. And with regards to next financial year, the revenue would majorly from barge. This particular opportunity, which we are working as of now is not a recurring opportunity. And so as of now, we cannot comment that in next financial year, what other revenues we can book other than this barge.
Nirvana Laha
Sure, sir. So apart from this quarter, will this current asset in-class contract will it get exhausted after this quarter or do we have another couple of quarters visibility after this?
Paras Savla
Okay. Yeah. So the current opportunity opportunity which we are working would be exhausted by end of this financial year. And if we’ll get another such opportunities, we can definitely book revenue. But as of now, it can exhausted by this financial year end.
Nirvana Laha
Got it, sir. And sir, can you give me the receivable figure for Dolphin as of Q3 end? As of H1 end, it was INR164 crores. So can you give me the figure after Q3?
Paras Savla
Okay. So the old receivables, which we were expecting to receive has not yet been received. So those receivables would be — which we expect to be received in current quarter. So receivables would be almost in same line. Maybe the recent revenue has been received. Yeah.
Nirvana Laha
Okay, sir. So sir, you had said that you have won arbitration awards of around INR33 crores to INR35 crores. So that cash has not yet been received, is it?
Paras Savla
Yes. So it is under process for recovery from client. Order is already in our favor. So we are working on it to get the actual money.
Nirvana Laha
Okay. Okay. And sir, H1 revenues of INR25 crores and dolphin, those were also outstanding as of H1. So have they been collected?
Rohan Shah
Yes. Majority of have — that have been collected.
Nirvana Laha
Okay. All right, sir. Amazing consistency, sir. Wish you all the best for the next quarter and the coming years as well. Thank you.
Operator
Thank you. The next question comes from Vimok Shah from Goyam Labh Fintech. Please go-ahead.
Vimox Shah
Yeah. Thank you for the opportunity and congratulations for the great set of numbers. So I think most of the questions are answered, but still I have two questions. First one is like the company has entered into the JV with the Euro gas system, right? And so how will this JV contribute to the company’s growth and new capabilities will it bring to the deep?
Paras Savla
So with JV, with Eurogas, we had bidded few projects for supplying gas processing equipments, but we didn’t get award of it. So as of now, we are just awaiting for few such tenders to be bidded under JV. So not sure how it will shape up in coming future.
Vimox Shah
Okay. Okay. And for is it safe to assume that at least 30% to 35% growth for the upcoming financial year as well?
Paras Savla
Yeah. So we are quite optimistic based on our existing order book and the expected orders to be received. We believe on consolidated basis, we should grow more than 30%.
Vimox Shah
Okay, okay. And one last point is like recently you filed for the QYP, right, for the INR350 crores. So what is the specific intent for this QIP? And what is the timeline for this fundraise?
Paras Savla
So for next financial year, we have capex plan of more than INR500 crores, which is for the projects which we have already awarded and few of projects we are expecting to get awarded. In addition to the capex, we are also evaluating to such opportunities of acquisition of other businesses in our industry itself. So we would need some funds for acquisition as well. So all put together, our requirement shaping up more than INR500 crore, of which we are planning to raise around INR350 crore through equity and balance we’d be utilizing our internal approvals and maybe we’ll take some debt as well.
Vimox Shah
Okay. Got it. Yeah. Thank you and all the best for the next quarter.
Operator
Thank you. The next question comes from Pankaj Motwani from Equirus Wealth. Please go-ahead.
Pankaj Motwani
Yes, thank you for the opportunity. And my question was on like in the earlier con-calls, like you have mentioned that around INR108 crores of arbitation award saw from ONGC was expected to be received and like after reading annual reports, I found around INR85 crores have been disclosed under the other kind liabilities. So like my question was why this amount has not yet been recognized in the P&L statement
Rohan Shah
Correct. So we had received an arbitration award in our favor for INR108 crores, of which 75% amount has already been received, which has been parked under other current liabilities, as you rightly mentioned. We have not yet accounted that as income because ONGC had challenged that arbitration award in higher court. So we were just waiting for the award of higher court to be coming in our favor. And once it is crystallized that it has been awarded finally to us, we’ll book that particular amount as our income.
Pankaj Motwani
Okay. Got it. And one more question like yeah.
Paras Savla
Yeah. Interestingly, we have received order from court also now in our favor. So we are just waiting for the final order to be sold to us and we hope if our client will not approach even higher authorities, then we have to book that in our revenue.
Pankaj Motwani
Got it. Got it. And one more question, what is our current bidding pipeline as of this quarter.
Paras Savla
So our current bidding pipeline is in range of around INR700 crores to INR750 crores, which we expect to get converted in next three to six months.
Pankaj Motwani
Okay. Yeah, that’s what my question is you. Yeah. Thank you.
Operator
Thank you. The next question comes from Manan Shah from MoneyB. Please go-ahead.
Manan Shah
Yeah, hi. Congratulations for a wonderful set of numbers. Most of the questions are answered, but I still have few questions. So first question was relating to Dolphin. In Dolphin, in standalone, you’ve booked some INR11 crores of revenue. Is that also pertaining to the same or to bring one asset in-class or it is a different revenue that you because in the standalone, the margins are relatively lower than what you had guided for this sort of type of contract that we’re executing.
Rohan Shah
Yeah. So in standalone, it was — it is different than which we were discussing. So in standalone, we have booked revenue out of one small contract of fabrication work and we have booked almost 50% revenue in Q3 and we are expecting another 50% to book in Q4 out of that small opportunity in standalone dolphin.
Manan Shah
Okay, understood. My next question was relating to this production enhancement scheme. What my understanding is that for the current level of production, we will receive some sort of service revenue. Is that understanding correct?
Paras Savla
That’s correct. So for current level production will get fixed amount to maintain those levels and will get share in incremental revenue.
Manan Shah
Okay. So what will that amount come to because the current level of production you must-have an idea. So this is something which will be more or less predictable that we will get for the next year or whenever we commence this contract. So what sort of number will this be and what will be the cost to service this revenue?
Paras Savla
So the revenue or fixed-price which we will be getting to maintain the existing level of production would not be that lucrative. It will — it can take care of the cost, which we would be incurring to maintain that. So our bullseye is on incremental production.
Manan Shah
Okay, understood. Understood. And my last question was on — we’ve — in this presentation, we’ve highlighted on the offshore services that we are — that we are looking to get into. If you can elaborate a bit more on that, where are we focusing and what sort of opportunities exist over here, that will be really helpful. Thanks.
Paras Savla
Yeah. So with an acquisition of Dolphin, we have started entering into offshore segment with our first services under category of services where we are planning to add fleet of some tugs and vessels like diving support vessel and platform supply vessel and anchor handling tugs. So our plan is to add these equipments in our fleet one-by-one and to put them on charter. So with marine services, we would be entering into offshore segment.
Manan Shah
Okay. So these assets, do we already own these assets and we will need — would we need to repurbish them or we have to acquire these assets?
Paras Savla
So one anchor handling tugs we have already acquired and we have acquired under Dolphin subsidiary with JV with some international partner and that tug will start operation by end of this quarter itself and eventually we would be adding few more equipments in coming times.
Manan Shah
Okay. So here the contracts are again long-term in nature or these are more shorter-term and what sort of margins can we expect to make in these type of services?
Paras Savla
So contracts are available for both long-term and short-term, depending on the time and opportunity we may choose entering into for long-term or short-term, margins are quite lucrative. They are more than 50% EBITDA margin business.
Manan Shah
Okay, understood. And any ballpark number that you would like to put that this can — this asset can generate.
Paras Savla
So little difficult as of now. I don’t have those numbers in-hand, but we can definitely share eventually.
Manan Shah
Sure. Thanks. I can take into if I have any more questions. Thank you.
Operator
Thank you. next question comes from Sahil Jain from Seven Islands PMS.
Sahil Jain
Hello Oliver am I audible now? Is it better now? Yeah, I just wanted to ask a question related to the PYP. So by any chance, do you have a breakup for the first which the company will utilize from the process came from the PYP and the timeline for the
Paras Savla
I already explain the requirement so largely it would be required for capex and one acquisition opportunity which we are on.
Operator
As there is a lot of disturbance from the line of current participants, we’ll move on to the next question. The next question comes from Shariya Punyani from Partners. Please go-ahead.
Shaurya Punyani
Hi, am I audible? Yes. Sir, just two small questions. So you mentioned you had a bid pipeline of INR700 crores. So what is the success rate usually we have?
Paras Savla
See, generally, it is almost 50% is what we believe our success rate is, depending on different verticals. In some vertical, we have even higher success rate. So on an average, you can take as 50%.
Shaurya Punyani
Okay. And sir, what are the margins we are looking-forward that currently we have 46%. So tell what we can expect improvement?
Paras Savla
So yeah, we are quite hopeful to maintain this type of margins. So it should be in range of 45% to 47%.
Shaurya Punyani
Okay, sir. Thank you.
Operator
Thank you. The next question comes from, an Individual Investor. Please go-ahead.
Unidentified Participant
Congratulations on the great set of numbers. I have a couple of questions. Can you please share the broad range for charter rates of bars is similar in size to?
Paras Savla
So there are two active options which we are evaluating for bars, like if you go for all-inclusive rate where you will have to do you will have to handle opex as well. So they are in range of $50,000 to $60,000 a day and if you opt for net of opex kind of rate, they are in range of $30,000 type per day.
Unidentified Participant
And sir, how has the rates been historically? Are we seeing higher-rate these years compared to the previous year.
Rohan Shah
Yes, yes, of course. I mean the rates have definitely gone up and particularly, I think we had mentioned in the earlier call that the kind of bars that we have is it’s called a DP bars, which is called dynamically positioned bar. So these kind of barges are very rare in the globe. So they definitely command a higher rates as we go-forward. So historically, if we have seen the rates have been always-on the increasing trend.
Unidentified Participant
Okay. And sir, can you also please share what is the amount of capex we’ll need to incur for our production enhancement contract?
Paras Savla
And a production enhancement contract, we are estimating capex of around INR160 odd crores and this we would be doing in two years time.
Unidentified Participant
Okay, sir. And sir, are there any difficulties that we might be faced for getting our incremental production and will there be any penalties if we do not achieve the level.
Paras Savla
Difficulties we are not foreseeing because this field we know for more than 15 20 years now and the way we have evaluated the field and production, we believe we will not have difficulties in increasing the production. There are no such penalties for — not increasing production.
Unidentified Participant
Okay, sir. Thank you. That’s all from my side. Thank you.
Operator
Thank you. The next question comes from Santanu Saikia from Indian. Please go-ahead.
Santanu Saikia
I was just wondering, Oil India Limited has come out with a rig for 3,000 horsepower and there is a new set of rigs which are coming out and you’re in a rig business very much, which are from ONGC with a six-year contract. So asking for new rigs. So for new rigs at six years, you can probably amortize your entire investment. So are you looking at these kind of investments? 3,000 horsepower rig is a huge investment in your — and then if it’s a long-term contract there also you would possibly gain. So are you looking at these kind of contracts?
Paras Savla
Yeah. So we are evaluating various opportunities because what we are seeing these days, there is a lot of demand coming in not only in 3,000 horsepower, but 2,000 horsepower, 1,400 horsepower, 1,000 horsepower and in various areas. So we are trying to evaluate that how we would be able to participate and whether in what area and what capacity of rigs is something that we would be able to comment only after reasonable passage of time. But for now, we are poised with this kind of demand. And as we see, I think all the operators across India have experiencing a complete deployment of the existing equipment. So there is definitely a lot of opportunity in the market. Having said that, we are — we are analyzing in which area and which segment or in which capacity of rigs we should be bidding as we go-ahead.
Santanu Saikia
So if you were to look at the 2,000 horsepower rig, the new set of rigs that are being advertised for the new rig is going to be considerably expensive. So then would you be able to have the capex to be able to buy a rig like this for a back-to-back deployment, because you know because then it’ll be way ab above your 500 crore capex that you are looking at
Paras Savla
As you would have heard, we have we have kept that cushion already with us. Our debt equities are well under control. Currently, as we speak, our debt is — almost we can say that we are net-debt free. So we have a good opportunity and a good possibility of raising debt as-needed going-forward
Santanu Saikia
All right. So have you deployed your barge already? I’m sorry, I came late in the conference.
Paras Savla
No, it’s not deployed yet. We are evaluating the opportunity of getting the better rates
Santanu Saikia
Okay, in Indian waters or all over the world?
Paras Savla
Currently, we are trying to deploy this barge into international waters
Santanu Saikia
Okay, because in India, demand has to come up for that kind of barge, right?
Paras Savla
Yeah, absolutely. I mean it’s the demand.
Santanu Saikia
Demand mismatch perhaps with India, you’ll be probably more comfortable in India, right?
Paras Savla
So the kind of vessel that we have is very unique vessel and this kind of vessel can comment in higher rates in international waters than in Indian waters. Moreover, in international waters, the workings are almost 10 to 11 months, whereas in Indian waters, the season is close to around eight to nine months. So we are trying to evaluate what best options we can get and the kind of revenue that we can get for the company and basis that we will decide in which area we should deploy it. But for now, our intention is to get into only international waters for now, for the that we’re talking about.
Santanu Saikia
That’s right. So are you understanding the market properly because it seems like a pretty complex market with demand-supply you know, going up-and-down and depending upon crude prices, depending upon E&P opportunities, etc. So do you have a full understanding of the market or are you still understanding the market?
Paras Savla
We have a reasonable understanding of the market.
Santanu Saikia
Okay. Now these platform supply vessels, etc., will it go with your barge or are you looking at the Indian marine spread market here?
Paras Savla
See today, as I mentioned this, the month that we are talking, we are not trying to get it into India for now. So getting aligned with the platforms that are available in India is currently out of cushion. But going-forward, if we think that there are opportunities where we can deploy more barges, which are aligning to the requirement of the current platforms, we’ll definitely evaluate that and go-forward.
Santanu Saikia
No, I’m talking about the — your acquisition of tugs and platform supply vessels, will it be part of this barge deployment or will it be a separate deployment in Indian waters against ONGC tenders or something?
Paras Savla
Yeah, we have secured both separately. They have not combined it.
Santanu Saikia
Okay. So have we deployed the barge already? Sorry, the tug that you have got as a joint-venture I think you talked
Paras Savla
About finalized. And as mentioned, we’ll be getting some revenues in this quarter. In the current quarter.
Santanu Saikia
Is there a private deployment or a public sector deployment?
Paras Savla
It is not in India, it is not it is around Mexico.
Santanu Saikia
All right. So you are essentially looking at an entirely different market segment from the market segment that you are cook — that you are comfortable with, which is the Indian market segment, right?
Paras Savla
The reason being because we had this barge working in Mexico, our first choice was very clear that we try and evolute the markets in Mexico. But being since we have already entered in this market, we will definitely try and work-out opportunities that we get-in India. So basis that we’ll keep buying the and the vessels, whatever is needed and deployed here.
Santanu Saikia
So by when do you think your barge is going to be deployed roughly?
Paras Savla
As I mentioned, it would be deployed in this current quarter itself.
Santanu Saikia
The current quarter itself will be deploying it, okay. So in active negotiation for deployment basically?
Paras Savla
Correct. Correct.
Santanu Saikia
You have a — have you got a contract in-hand or are you in negotiation with the contract?
Paras Savla
We are almost on last stages of negotiation.
Santanu Saikia
Okay. Okay. All right. So that’s all I wanted to know. Do you think the gas compression business has become a little commoditized in the sense of many players in the business. There is a lot of undercutting of prices. Sometimes we see that your quotations are higher than most of the other join income lately kind of players in the market. So what’s really happening in this gas compression and what is it called — when you take-out the water vapor from it, I don’t know what it is called. So that business where you started in fact, along with the rig business. So how is how is that business doing?
Paras Savla
It’s doing very well and we have been strategizing it looking to the demand-supply. And as I mentioned, we are still holding a reasonable amount of market-share in that segment. And I think we’ll continue to do that.
Santanu Saikia
Okay. And in the rig business, are you planning to acquire
Operator
Somebody to interrupt may we request you return to the question queue for follow-up questions. There are several participants waiting for their turn. Thank you. The next question comes from Gaurav Sachtewa from Sajag FundHouse. Please go-ahead.
Gaurav Sachdeva
Yes, am I audible? Yeah. Hello. Yes, yes. Sir, as you said, you will be requiring INR500 crores for the expansion and INR300 crores to INR350 crores to QIP and rest of through internal accrual. So what was the source of the internal accrual? Will it be cash flows or will we be liquidating our investments, which is already around INR170 crores?
Paras Savla
Yeah. So it would be — it can be both cash generation out of business and we may utilize some investment as well. In fact, we have kept open option of taking debt as well..
Gaurav Sachdeva
So can you tell me that how much investment will be liquidated?
Paras Savla
See that depends on the timing of the capex or the requirement which will be shaped up in next financial year. So it cannot be said upfront that how much investment we would be liquidating. But as and when opportunities kicks-in and the liquidity available on that particular date, we can take decisions.
Gaurav Sachdeva
Okay. And sir, are we still targeting INR800 crores revenue by FY ’26 as you said in the last con-call?
Paras Savla
Yes.
Gaurav Sachdeva
Okay. And any opportunity in the offshore grid segment we are getting since the government is pushing in the offshore wind through our offshore, are we getting any opportunity in this sector?
Paras Savla
No. So there are lot of opportunities already running in the market and we are trying to evaluate it. But for now, we are intention is to get only into the Chata hair business of these barges and tugs and all those stuff.
Gaurav Sachdeva
Okay. Okay. Thank you, sir. That’s from my side. Thank you.
Operator
Thank you. The next question comes from Ragu from Travist Capital. Please go-ahead.
Raghu Garimella
Yeah. I just have a follow-up question regarding the QAP and the debt. Just forgive me if my calculations are off. I think we — something around INR150 crores to INR200 crores of cash-flow in the next 12 months and we have a QAP for INR350 crore. So why are we liquidating so much about 10% of equity when we can easily raise about INR100 crore INR200 crores of debt and you have anyway INR200 crores of cash-flow coming in. Please can you explain me your understanding of why it is so high, the QIP?
Paras Savla
As I mentioned, the markets are very, very dynamic these days and the kind of demand in the demand of the services, the way it has evolved, we feel that in a period of next year or two, there would be immense flow of orders to come in. We feel utilizing whatever the current cash flows are along with the equity that we are trying to raise, we’ll definitely need a huge amount of debt also going-forward. So we feel that it’s always better to have amount of liquidity on-hand because it could be also used to acquire. As I think we had already mentioned in the call earlier that we are looking in some opportunities to acquire some ongoing businesses. Of course, it has not finalized that yet, but the market is very, very dynamic these days. So it’s always better to have the liquidity on-hand. So as the opportunity gets finalized, you can always use that funds to acquire the businesses.
Raghu Garimella
Okay, fine. It’s because the demand is just too huge for executing the orders. I get it. Okay. Thank you so much.
Operator
Thank you. The next follow-up question comes from Shah from Goem Fintech. Please go-ahead.
Vimox Shah
Yeah. Thank you for the — for allowing me for the follow-up questions. So company is like expanding the onshore drilling business as well, right? So can you please provide an update like on the company’s current onshore drilling assets and what is the expected capital allocation for this segment over the next one or two years.
Paras Savla
So onshore rigs, we are into this business for more than 15 years now. And currently, we are doing capex for acquiring three rigs, which is already under progress. And with the recent award, we are adding one more rig in coming financial year. So depending on the awards, we would be adding few more rigs in coming financial year. But since in our business, CapEx is generally backed by awards, so exact number we cannot quantify as of now.
Vimox Shah
Okay. Yes. Thank you. Thank you.
Operator
Thank you. The next question comes from M N. Kumar, an individual Investor. Please go-ahead
M N. Kumar
Sir, this is related to ONGC contract where you are going to do the management of the current production. But as the fields are quite old, Delta fields, if there is a drop-in the production from the current level. Is there the penalties associated with that particular contract, sir?
Paras Savla
So I think I have answered this question earlier. So we believe there are no such penalties on reduction reduction of production. So our — but our interest and opportunity is in increasing the production because we get revenue-share in incremental production and the study which we have done in on this particular field, we are quite positive that this field we can easily start increasing production.
M N. Kumar
I got the second part, sir. First part. I just wanted a double confirmation. So do we have the geologists which are needed for making all the decisions about what kind of a technology to be deployed for increasing the production? We have been — my impression was that we are the asset company which we keep leasing to the people for usage and they make the dictions and we educate. Am I wrong in that one, sir?
Paras Savla
No, we have a group of geologists and reserver engineers also as a part of our company. So while we are using our equipment diligently to enhance or increase the production, but that definitely requires a lot of understanding on a sub-surface or the geology. So we have a team of those experienced team who can help us identify what and all what we need to do to increase production
M N. Kumar
That’s great, sir. I didn’t know the strength of this particular company. Thank you, sir. The second question is related to project, sir. I think it is going to be executed maybe next one year or so. Where-is this located and how many rigs we have to deploy, what — can you throw some light on this one, sir?
Paras Savla
So for now, we have dedicated one-rig for sell-in and largely the wells that we are going to drill for them would be in around Gujarat region, barring one or two wells that we are going to do in Northeast, but the rest of the entire wells are going to be done in the area of Gujarat.
M N. Kumar
Thank you, sir. Congratulations on a great set of numbers and it gives more confidence that the same tempo of growth is going to be seen more. Maybe we will even increase the rate of growth even further next year. Thanks, sir. Bye.
Operator
Thank you. The next question comes from Srikar, an Individual investor. Please go-ahead.
Srikar
Sir, am I audible? Yes, yes. Sir, it’s regarding our inorganic expansion, sir. So whom are we trying to like you know, take into our things like rig — rig owner or a data provider or a maritime services provider. I mean, which company are we hanging, sir? I mean
Paras Savla
It won’t be — it won’t be possible for us to disclose to whom we are currently talking with because the deal is not yet finalized. But just to give an idea, it would definitely with the equipment or the asset holders in various areas. Those are the target companies that we are looking at.
Srikar
Got it, sir. Sir. The next one is regarding our FY ’26 guidance of around INR800 crores. We just said that around six months of our PEC is going to be executed in the FY ’26, which is not going to cross INR100 crores as per the management. So how are we going — how are you going to reach that number, sir, around INR800?
Paras Savla
Yeah. So we are expecting full-year revenue from dolphins barge in FY ’26 in addition to our growth in our existing business and as I said, around six months revenue from production enhancement. So all put together, we believe INR800 crore is it’s very much achievable.
Srikar
Okay. Will there be any guidance cut for this particular year, sir, because earlier we were guiding like 570 crore to 575 CR. So is it going to come down this year because the barge is getting delayed.
Paras Savla
Yeah. So we are still holding the same number as in guidance for this financial year. We believe we could achieve that.
Srikar
Thank you, sir. The last question is regarding PVC from Oil India, sir. It was supposed to-end today the contract. Did we bid for it, sir?
Rohan Shah
I think for some reason, I’m not very sure, but I just saw the email today that the PC, that one has been canceled. I think there would be some additions and modifications probably coming up and that is probably the reason that they have canceled this PC. And in all probability, it seems that they may come out with the new one. It’s a modification.
Srikar
Okay. Thank you, sir. Thank you. That’s it from my side. Thank you.
Operator
Thank you. The next question comes from Rai, an individual Investor. Please go-ahead.
Unidentified Participant
Thank you for the opportunity. Sir, can you tell the amount that has been spent on the renovation of the barge?
Paras Savla
So we have spent till now around INR115 crore on the barge refurbishment.
Unidentified Participant
Okay. And can you also give a broad range at what price level we might be able to sell our incremental production from our production enhancement contract?
Paras Savla
So currently, natural gas is being sold at around $13 mmbtu and we believe we will be able to sell the gas in the same range or whatever market price would be prevailing at that particular time.
Operator
So the line for the current participant has been dropped from the queue, and as there are no further questions from the line of the participants, I now hand the conference over to Mr Rohan Shah for closing comments.
Rohan Shah
Thank you, everyone, for joining this call. It was pleasure to respond to your questions. And if you have any further queries, you can definitely approach us through PR or you can directly connect us as well for any further queries. We would be happy to answer all your queries. Thank you.
Operator
Thank you. On behalf of Deep Industries, that concludes this conference. Thank you for joining us. You may now disconnect your lines.