Deep Industries Ltd (NSE: DEEPINDS) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Paras Shantilal Savla — Chairman & Managing Director
Rohan Vasantkumar Shah — Director & Chief Financial Officer
Analysts:
Unidentified Participant
Sudeep Anand — Analyst
Parth Agrawal — Analyst
Rohit Priyadarshi — Analyst
Manan Shah — Analyst
Sanjay Shah — Analyst
Pankaj Motwani — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Deep Industries Limited Q3 and 9M FY26 conference call hosted by Systematics Institutional Equities. As a reminder, all participants lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sudeep Anand. Thank you. And over to you.
Sudeep Anand — Analyst
Thank you Hina and good morning everyone. Thanks for joining us today for the Q3 9 months FY26 earnings call of DIP Industries. On behalf of Systematics I would like to thank the management for giving us the opportunity to host the call and also many congratulations for the great set of numbers. Today we have with us Mr. Paras Savla, Chairman and Managing Director and Mr. Rohan Shah, Director Finance and CFO. Now I would like to hand over the call to the management for the opening remarks and then we can open the call for a Q and A.
Thank you and over to you Parasvi.
Paras Shantilal Savla — Chairman & Managing Director
Thank you. Good morning everyone and thank you all for joining us today to discuss our performance for the third quarter and nine months ended 31 December 2025. We sincerely appreciate your continued interest and confidence in Deep Industries. I trust you have had the chance and opportunity to review our financial results, press release and investor presentation which have been made available on the company’s website and stock exchanges. I am joined today by our Director of Finance and CFO Mr. Rohan Shah who will take you through the financial performance for the quarter and nine months in detail.
After my remarks, let me briefly take you through India’s macroeconomic environment and the evolving dynamics of the energy sector. India’s energy sector is currently witnessing one of its strongest multi year investment cycles. The policy focus has decisively shifted from energy security to energy independence with a clear roadmap to mobilize over USD 100 billion of investments in oil and gas by 2030 and a broader opportunity of over USD 500 billion across the energy value chain. This includes accelerated domestic exploration, expansion of gas and LNG infrastructure, high refining capacity and deeper integration across upstream and downstream segments.
India’s natural gas consumption is projected to grow nearly 60% by 2030, rising from 188mm SCMD in FY24 to around 297mm SEMD under the good to go scenario. In this constructive and fast moving industry environment Our focus is not on chasing activity but on disciplined execution, asset reliability and capital efficiency at the project level, areas where our operating experience and integrated capabilities provide a clear advantage. Now I’ll speak about operational performance highlights during quarter three FY26 these industries continued to deliver consistent operational performance with a sharp focus on safety, execution discipline and asset reliability across all operating sites.
Our production enhancement operations at Rajamundiri Field progressed as planned during the quarter. During operations there was a gas leakage incident which was encountered at the site. This was an unexpected geological surprise encountered during operations. Through a swift response, strong safety systems and close coordination with ONGC and the regulatory authorities, the situation was successfully contained within five days which is a rare outcome in such cases. And notingly, we didn’t have any casualty. About the business momentum in order book 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 enhancing domestic production capabilities is supporting sustained demand for integrated oilfield services. Our order book remains robust, providing multiyear revenue visibility and reinforcing confidence in our long term growth. Outlook on the Strategic Priorities as we move through the remainder of FY26, our strategic priorities remain centered on maintaining the highest standards of safety and operational excellence, optimizing asset utilization and execution efficiency, thereby strengthening cash flow discipline and balance sheet quality and participating selectively in value accretive domestic and international opportunities that are aligned with India’s expanding energy ecosystem.
We believe this balanced approach positions us well to navigate operating complexities while continuing to create long term value. In closing, I would like to thank our employees for the 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 Deep Industries. With that, I now invite Rohan to take you through the financial highlights for quarter three and nine months. FY26. Thank you,
Rohan Vasantkumar Shah — Director & Chief Financial Officer
Thank you Parazwai investor friends. Thank you for joining the call today. I am pleased to share with you another Strong quarterly and 9 months performance of Deep Industries Limited.
All comparisons are on a year on year basis which would provide a fair evaluation. I’ll start with quarter first for third quarter ended 31st December 25, revenue stood at 221.5 crore up by 43.1% year on year. Tight control over operating costs helped us post EBITDA of rupees 110.1 crore in Q3FY26 reflecting 46.3% YoY growth with an EBITDA margin of 47.6%. We continue to maintain healthy EBITDA margins in the range of 46 to 48% ensuring strong operating cash generation to support our future growth trajectory. Net profit for the quarter was rupees 71.3 crore up by 49.8%.
Year on year for nine months ended on 31st December. Revenue from operations stood at rupees 642 crore registering 57% year on year growth. EBITDA for nine months FY26 was rupees 318 crore up by 58% year on year with an average EBITDA margin of 46.3% profit after tax for nine months FY26 was rupee 204.3 crore showing 59.7% year on year growth. As on data, our order book stood at rupees 2,967 crore providing strong revenue visibility for the coming quarters. With this I now open the forum for question and answer. Thank you.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one in the touch tone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, the first question comes from the line of Parth Agalwal from Bestian Research. Please go ahead.
Parth Agrawal
Hi. Thank you for the opportunity. So I have two questions. One is around order book. So you know for last few quarters our order book has plateaued around you know 3,000 crores. And our major client ONGC has announced, you know, major capex for FY27. So when can we expect you know, new series of order coming from those clients?
Rohan Vasantkumar Shah
Regular tenders are being floated by various oil and gas producers including ondp. And we are regularly bidding those tenders related to our part of services. And I think for us bidding tenders and getting orders on regular basis is consistent over quarters. So yeah, it would be continued flow for us.
Parth Agrawal
Okay, so currently for what is the amount of order that we bid for so far? Right now the allotment is pending.
Rohan Vasantkumar Shah
So our current bidding pipeline is somewhere around 800 crores. Tentatively. But since those are bids amount may vary.
Parth Agrawal
Generally a success rate is around 20, 30%.
Rohan Vasantkumar Shah
Yeah, it is in some of verticals it is more than 50% as well.
Parth Agrawal
Okay. Second is on the, you know, PEC project that you’re doing for the omgc. So are we producing about the baseline right now?
Rohan Vasantkumar Shah
Yes. So in PEC it is progressing well as per our expectation.
Parth Agrawal
Got it. And so in this quarter how much percentage of revenue is coming from PEC in Sweden?
Rohan Vasantkumar Shah
So PEC we have started recently. So it would not be measured in percentage. Yeah. Though it is not much contribution from PEC this quarter. But in coming quarters it will come up well.
Parth Agrawal
So if your products are producing above baseline then my expectation is that we’re getting a good revolution. Right. So in that case it should be contributing decently.
Rohan Vasantkumar Shah
Yeah. But see what additional you are generating over and above baseline is also material while calculating the revenue contribution. So we are seeing this in this quarter, contribution from PEC was somewhere around 20 cross which eventually would be ramping up over a period of time.
Parth Agrawal
Got it. So at some point it would reach around 100 crores per quarter, end of number or difficult to achieve that.
Rohan Vasantkumar Shah
Our expectation from this particular project is around 150 crore on a year basis.
Parth Agrawal
Okay, thank you so much.
Rohan Vasantkumar Shah
Thank you.
operator
Thank you. The next question comes from the line of Rohit Priyadarshi from Mittal Analytics Private limited. Please go ahead.
Rohit Priyadarshi
Yeah. Hi. Thanks for the opportunity sir. And congratulations on the good set of numbers. Sir, I wanted to understand more on the macro environment front on the offshore building market. So is there any slowdown in offshore activity or do you still see strong demand?
Rohan Vasantkumar Shah
Overall oil and gas industry is witnessing a good growth. Particularly our interests are more into onshore activities. And therefore we have an understanding that the demand is increasing in onshore activities. With regards to offshore, there is attraction but we won’t be able to permit existing how offshore this is. I’ve been.
Rohit Priyadarshi
Okay, okay. And sir, can you please also comment on the drilling and related services like demand related to vessels that we use in, you know, offshore activities.
Rohan Vasantkumar Shah
Sorry, I didn’t get your question. Can you please repeat that, Mike?
Rohit Priyadarshi
Yeah, So I was asking about the vessels that are required. So what kind of demands are you are seeing related to the vessels?
Rohan Vasantkumar Shah
Primarily we are looking towards the vessels which are more or less support kind of which are involving support services like our barge or anchor handling, tugs or diving support vessel kind of. So on those areas we are witnessing a good amount of demand and that demand is prevailing I think around the globe. So there, there is a good opportunity going forward.
Rohit Priyadarshi
Okay. And sir, in our Q3 revenues we grew up to 222 crores which is growth of 40% year on year. So I wanted to understand which segment contributed most to this growth like onshore rigs, PVC or gas compression. If you can quantify the segment growth.
Rohan Vasantkumar Shah
Is Almost in each segment. So as I said, production enhancement is something which is new which has started contributing. And with regards to offshore services they have also started contributing in full during the quarter. And of course by deploying new rigs and assets in other verticals also we are seeing good amount of growth. So I would say we are exactly going on as per our expectation. And this growth is very much visible.
Rohit Priyadarshi
Answer. Is this growth more of volume driven or there is some pricing or day rate improvement also happened?
Rohan Vasantkumar Shah
Volume.
Rohit Priyadarshi
Volume driven. Okay. Okay. And the last question would be on the offshore business which is our Dolphin and Prabhaj.
operator
Mr. Rohit, you may rejoin the queue for the follow up question. Ladies and gentlemen, in order to ensure that the management is able to address question from all the participants in the conference please limit yourselves to two questions. The next question comes from the line of Manansha from Moneybee Investment Advisor. Please go ahead.
Manan Shah
Yes. Hi. Thank you for the opportunity. First of all I would like to congratulate the entire team and the management for consistently delivering since past three years. So very rare to find this sort of execution over this sort of time frame. So congratulations for that. My first question was on this production enhancement scheme. You mentioned that you expect to ramp up to say 150 crore sort of output. So you are expecting this ramp up to happen in the next year itself. Or it should be a gradual ramp up over the next two, three years. And also the incident which occurred I believe was at this particular site only.
So will that lead to any sort of delay in the ramp up?
Rohan Vasantkumar Shah
Thank you. Mananvai. Yes. So this 150 crore revenue we are expecting from next financial year onwards. So maybe not full next financial year but on full year basis probably 27, 28. We can reach over and above 150 crore. To answer to your second question about that incident. Yes, that was an unfortunate incident. Happened in production enhancement contract itself. But as said by Paras Bhai, we have contained that in just record time of five days and and have avoided any losses pertaining to that. So I would say there would be little delay in the revenue ramp up because of this.
Maybe around two, three months delay in ramp up of revenue. Other than that we are not forcing any negative out of this.
Manan Shah
Understood. My second question was on the Dolphin side in the current quarter we have booked some expenses or there is some increase in the raw material consumption. Our understanding was that the price that we have negotiated is post all expenses. So if you can just tell us what this increase in expenses in Dolphin has been.
Rohan Vasantkumar Shah
Right. So There were certain amount of repairing were required as per client’s additional requirement in the barge. And since that asset is up and running, the expenses which we had incurred had posted into the operating expense. That is how in this quarter it is appearing little higher.
Manan Shah
So this is a one off it. It is not expected to continue in the subsequent quarters?
Rohan Vasantkumar Shah
Mostly no. Yeah. Repairing you cannot comment upon or expect. But yeah, you can see like that.
Manan Shah
Okay, understood. Thirdly, on the order book side, generally every quarter, you know, since the past few quarters we have been winning orders close to 200 to 300 crores. While this quarter overall order wins have been close to this 140crores. So has there been a rollover to the subsequent quarter and should we expect, you know, subsequent order wins or conclusion of these tenders that we have bid for in the Q4?
Rohan Vasantkumar Shah
Yes. So we are expecting good amount of conversion in Q4 based on tenders bidded and in one or two we are L1 as well. So yes, I can see the order win for this particular quarter was not as high as it was in earlier quarters. But that can spill over in Q4.
operator
Mr. Manan, you may rejoin the queue for the follow up question.
Manan Shah
Sure.
operator
The next question comes from the line of Sanjay Shah from KSA Securities. Please go ahead.
Sanjay Shah
Good morning gentlemen. Thanks for opportunity and your detailed presentation is really helpful. So my question was regarding, given our PSU exposure, how comfortable are you with the receivable cycle and are there any structural improvement in the payment timelines and continuing to that ONGC and Gail are key clients. How are you thinking about diversifying client exposure with without compromising on margins? Having said that, PSUs do definitely have the largest market share in India and therefore it’s not possible to completely get out of that PSU culture or to an extent, of course we are trying to get to the private clients and which we have other than ONGC and gaz.
So we have our clients with Oil India, we have clients with gspc, lng, Vedanta Telan. So likewise we are working almost with all the leading oil and gas producers. But having said that, the kind of market share and the demand that has been generated from these one or two companies cannot be avoided. We have our exposures also with other clients and there we are constantly working on expanding our client base which I’m very sure maybe in some short span of time could be witnessed, but it couldn’t be very immediate. And regard to comfort, we have been working with these clients now over 30 years.
So we have a reasonable experience working with These clients and understanding the culture. And with that we don’t find any difficulty working with these clients. So my second question was regarding new opportunities. What are the new opportunities, what we see for our company and what are the steps taken by the management to. Go ahead with that?
Paras Shantilal Savla
With regards to the new opportunity, we are constantly thriving. As we had said that we are working in four different verticals of our business and each of the verticals have proved a fabulous outcome on each of these. So our idea is to expand our services into each of these verticals, each of the capacities because with the process plan we are running two process plants. Our idea is to work on more of these such opportunities which can help us expand not only the revenues but also expand our profits. Likewise, we are also looking into getting into higher capacity rigs which are the need of India today.
So we are actively working on those opportunities to get in that segment. So we believe for at least few years from now we have got our hands full and with the new requirements that are generated in the market or from the clients would definitely take care of what all that you mentioned. And what was the other thing that you mentioned? Sorry, I.
Sanjay Shah
It was regarding the same new opportunities and how you see that scaling from management bandwidth and required fund for that.
Paras Shantilal Savla
And you know there are all possibilities that new PC should also come up.
I think our clients would be firming up the requirements because this probably should have worked very good for the companies as well. So we see a good amount of growth if it has to come also from PEC.
operator
Mr. Sanjay, you may rejoin the queue for the follow up question. The next question comes from the line of Khan Bhargava, an individual investor. Please go ahead.
Unidentified Participant
Hello.
operator
Yes,
Unidentified Participant
hello.
operator
Yes. Yes sir, you are.
Unidentified Participant
Yeah, hi. So I just have one question regarding your Kandla Energy acquisition. Sorry if you’ve addressed this before but I need a little bit more clarification on this. So you had a 250 odd crore write off last year in the fourth quarter and in the Kandla annual report balance sheet you still have about 208 odd crores of doubtful receivables. So can we expect another write off coming from this?
Rohan Vasantkumar Shah
So we are giving our attempts for recovery of those old receivables and once we would be having a clear and fair idea about what amount to be recovered and what will not be able to recover, we may go for some provisioning. But we are not expecting any such provisioning in this financial year. And also having said that, like to reiterate that these houses we have not paid any, any amount towards these outstanding. So this was a part and partial of the, you know, the company that we got in. So this is an additional effort that we are trying to see the maximize or to maximize whatever recovery that we can make.
Unidentified Participant
Right. So if I’m not mistaken, you acquired it from the IBC for about a lakh rupees, right?
Rohan Vasantkumar Shah
For 2 crores. Around 2 crores.
Unidentified Participant
Oh sorry, my, my bad. My understanding is wrong. So you’ve acquired it for 2 crores. And you’ve already done a write off. Of about 250 crores and potentially another. 200 crores per write off. So what was the reason behind acquiring a company which is potentially causing you. To write off close to 450 odd. Crores which is more than two years of your earnings. If I take the last two years.
Rohan Vasantkumar Shah
Yeah. So our interest in acquiring this particular company was largely the hydrocarbon fluids which they used to manufacture in their good times. So those hydropowerville fluids we are using in our drilling processes and that can be I would say one of the major inputs while drilling well. And with this we can achieve some amount of backward integration. So that was our prime intention to acquire this company. Also it was available at very reasonable price along with some real estate properties. So that was a primary intention to acquire.
operator
Mr. Karan, you may rejoin the queue for the follow up question. The next question comes from the line of Deepak from IGE India, please go ahead.
Unidentified Participant
Hello. Am I audible?
operator
Yes you are.
Unidentified Participant
Yeah. Sir, so we have a muted growth on QOQ despite we have a PEC contract revenue this quarter. So which segment or which product of ours has given the lesser growth this quarter? QQ basis and also if you can provide us the guidance on the revenue for next year. And what’s the status on the quiver?
Rohan Vasantkumar Shah
Q on Q? There can be some projects maybe spilling over to next contract and there can be one or two contracts or assets which will maybe in transit from one contract to another. So there can be reasons during this quarter. So generally we advise our investors to review our performance on yearly basis rather than quarterly basis because these are all long term contracts. And in second quarter contribution from PEC is also not that significant. So more or less results are in line.
Unidentified Participant
Okay. And sir, revenue guidance and any status.
Rohan Vasantkumar Shah
On QIP based on our existing order book we are pretty confident that for next year also we would be having growth of more than 30, 35% and the similar growth we can expect next to next year as well depending on the new orders which we are getting. On regular basis. We have just paused that process as of now and we are not going ahead with it.
Unidentified Participant
Okay, thank you. Thank you.
operator
The next question comes from the line of Gaurav Sadev from Sajak Securities. Please go ahead.
Unidentified Participant
Hello, sir. Sir, for some articles that the pec fire incident, the well has been permanently capped. What is the status as of as of now? Has it been permanently kept?
Paras Shantilal Savla
No, no, no, it is not permanently kept. It is kept temporarily. And once we have a rig that is expected to come within three months. So once we have that big going we will try to recover that well and try to produce from that.
Unidentified Participant
But you will only, it’s not mandatory. You will only try to recover it.
Paras Shantilal Savla
Of course we’ll try to recover it.
Unidentified Participant
Okay. And can you tell the total financial loss in this incident? Because I think as per the sources, one rig has been destroyed in this.
Paras Shantilal Savla
Rig has been destroyed. Certain portions of rigs have been destroyed. And we have the necessary insurance for ensuring that our losses are recovered. But we don’t find major, you know, losses towards any other thing. There would be few amounts that we are not still aware about because that assessment is still going on. But we don’t feel that it should be significant.
Unidentified Participant
But who will be funding these laws?
Paras Shantilal Savla
We have covered very well not only on the rich side but also on the website.
Unidentified Participant
But sir, as per the news, ONGC has declared 10,000 ex glacier to the fire, nearly 5,000 families and a hundred bed hospital. WHO will be funding these things?
Paras Shantilal Savla
The exgratia has nothing to do when you are itself telling ex gratia it is out of, you know, something, responsibilities or whatever that ONBC is already operating in that area for years together. And they have definitely a larger infrastructure. And ONGC being the largest esu they have been doing the CSR activities for years together. So this incident of giving an amount on X Gracia, I don’t think it is contractually, you know, there is any liability towards us. So that is something that ONGC would have done it but it does not have any implication as of as we speak on us.
Unidentified Participant
Okay, thank you. Thank you.
operator
The next question comes from the line of Ankur Sawaria, an individual investor. Please go ahead.
Unidentified Participant
Thanks a lot for giving me the opportunity. And I really congratulate the management for giving a stellar performance quarter after quarter. And I also think that. I also agree with you that you have postponed the QIP because for last one and a half years we have given. You have given excellent results. And the share price hasn’t shown in the prices that issues have shown. My question regarding is that as of now what is the status of the court case that we have? We are ongoing with ONBC in the Supreme Court. Sir.
Paras Shantilal Savla
Sorry, can you please speak a little loud and can you please stop? Yes. Are you referring
Unidentified Participant
to the court case that you have sir, in the supreme court regarding the 180crore that you feel that you will get?
Paras Shantilal Savla
We have already got a good amount already from the same. And the matter has been contested by our client. And it is currently not in Supreme Court. It is lying with High court. So as we mentioned that we have already won this case at the arbitration level. Then we have already won it at a commercial court level. And now the matter is with the High Court. We don’t know. We cannot time exactly when these court orders are going to come or what. But best we anticipate that it should be in next three to six months.
Unidentified Participant
Okay. And sir, this year I think we will do some revenue of about 850 crores. Are you confident that a 30 jump that is somewhere about 1150 is possible for next year?
Rohan Vasantkumar Shah
Sorry sir, your voice is not getting clear. If you can speak little louder or can take the handphone.
Unidentified Participant
Is it clear now?
Paras Shantilal Savla
Yeah, now it’s better.
Unidentified Participant
Are you confident that the revenue this year I think will somewhere close around 1150. 850 crores. The revenue will grow to 1150 crores next year. Are you confident about that, sir?
Rohan Vasantkumar Shah
Yeah, based on our existing order book we are quite confident on that.
Unidentified Participant
Okay. Thanks a lot for answering my questions and all the best.
Rohan Vasantkumar Shah
Thank you.
operator
The next question comes from the line of Rohit Priyadarshi from Mittar Analytics Private Limited. Please go ahead.
Rohit Priyadarshi
Thanks for the opportunity. Question is related to the endorphin or Prabha DP2BHAJ. So what was the approximate revenue and EBITDA contribution from you know in quarter three from these.
Rohan Vasantkumar Shah
So I think Dolphin results are also in public. So it would be clearly evident from that. Currently I’ll just tell you what exact contribution is coming from Dolphin. It has contributed around 30 crore on revenue and almost 13 and half crore on profitability by Dolphin for the quarter.
Rohit Priyadarshi
Okay. From the Prabha DPU bag that we have can you tell me the approximate revenue and EBITDA from that also?
Rohan Vasantkumar Shah
Sorry, Prabhat.
Rohit Priyadarshi
The revenue that we are generating from Prabha DP2 batch.
Rohan Vasantkumar Shah
Yes. How much? Sorry
Rohit Priyadarshi
sir, I want to.
Rohan Vasantkumar Shah
We are expecting around 100 crore from that particular asset in current financial year as revenue.
Rohit Priyadarshi
Okay. Okay, understood. And on the utilization level are we fully utilized here?
Rohan Vasantkumar Shah
Yes. So currently we are operating that single asset and it is 100 utilized.
Rohit Priyadarshi
Okay. Okay, got it sir. Thank you. Thank you so much, sir. That is all from my side. Thank you.
operator
Thank you. The next question comes from the line of Manansha from Moneybee Investment Advisor. Please go ahead.
Manan Shah
Yeah, hi, thanks for the follow up. My question was on Kandla. So now it’s been almost 19 months. Since we acquired that asset. When are we looking to see that asset commercialize and start contributing? Because I believe it was supposed to lead to some sort of margin expansion for you as well.
Rohan Vasantkumar Shah
Correct. So as per original plan, it should start contributing from FY27. So we are working towards it. So in this particular financial year we are not expecting anything out of it.
Manan Shah
Okay, but in, in the next financial year, is it in the first half or the second half that you’re targeting?
Rohan Vasantkumar Shah
We are targeting second half.
Manan Shah
And would it require any sort of capex?
Rohan Vasantkumar Shah
Yes it would, but not major one.
Manan Shah
Okay. Secondly, on the bid that we have bid pipeline of 800 crore, does this also have any sort of bid that we’ve bid which would require us to to require and acquire any asset on the offshore side? Like I believe we were looking to add more vessels in the offshore segment, either tugs or platform support vessels. So is the current bid pipeline inclusive of that?
Rohan Vasantkumar Shah
No, the 800 crore does not include the offshore bits.
Manan Shah
Is there any separate bid pipeline for that?
operator
Mr. Manan, you may rejoin the queue. For the follow up question
Rohan Vasantkumar Shah
for offshore. As of now we are on evaluation stage, so bidding is not yet done.
operator
The next question comes from the line of Diva Karana from Prudent Equity. Please go ahead.
Unidentified Participant
Hello. Hello. My question is a micro one. So can you explain how does the lower crude oil prices impact our business?
Rohan Vasantkumar Shah
So in our business entire revenue is coming from services which are more of support services to oil and gas sector. And these services are more of inevitable in kind of nature. And so it has very negligible or I would say least impact on crude oil price. Because whatever crude oil price would be, these services would be required.
Unidentified Participant
Okay. Okay, just two more questions. So after this Venezuela episode, USA is going to increase the production of Venezuela oil. So do you think you can capitalize any opportunity there in terms of bars or any other products you have?
Rohan Vasantkumar Shah
Yeah, there can be a opportunity. So it is just a recent development so it would be difficult to comment upon. But yeah, since we have also entered into offshore support services, we can have opportunities in those regions as well. And as a matter of fact even our government and our Honorable Prime Minister is having a tribe or a trust to produce more oil and gas within the country. So I think with that kind of things that are moving in the country that will also give a big amount of, you know, boost to our segment within India.
So we are equally excited to look the opportunities in India as well as any other countries possible.
Unidentified Participant
Okay, answer one last question. So you said you know, you are not going ahead with the qip, so does this impact our future growth and capex threat?
Rohan Vasantkumar Shah
Not really because we are generating some handsome cash from business and we are very much comfortable on our debt levels as well. So we have a huge opportunity to raise debt as well as and when required. So largely we will be able to manage without qip.
Unidentified Participant
Okay, thank you sir.
operator
Thank you. The next question comes from the line of Abisha from Siddhi Technologies. Please go ahead.
Unidentified Participant
Hi. So I have one question regarding the onshore vessels that were going to be inbound from China. So what’s the status? It was going to be deployed in December and one of the vessels or rigs I would say were going to be deployed in Q4. So can you just elaborate the status? What, what is the status of both the rigs?
Rohan Vasantkumar Shah
So the rigs, it was rigs, not the vessel and rigs which were we were intending to deploy in December have already been deployed and the rig which we are expecting in Q4 would be deployed somewhere in first week of March.
Unidentified Participant
Okay. And what the revenue can we expect. From both of those rigs? Any status upon that if we can?
Rohan Vasantkumar Shah
Those numbers I need to check but definitely it will contribute to incremental revenue for Q4.
Unidentified Participant
Okay, yeah. Thank you.
Rohan Vasantkumar Shah
Thank you.
operator
Thank you. The next question comes from the line of Gaurav Szde from Sajak Securities. Please go ahead.
Unidentified Participant
Sir, just a follow up question since you told that it will take around three months for the rig to come and there is no confirmation when the well will be capped off and services will be resumed in the PVC contract. So will it affect our Q4 revenue and further quarter revenue and margins also?
Paras Shantilal Savla
So as I mentioned it will. It will take us a quarter or so to bring the new rate. But having said that there would be a definitely a little impact on it but. And Today with the PC contract we are working on 40 different wells. So the one that the incident has taken place was one of them. Of course that was a substantial of it. But having said we have other 39 wells with us and we are flowing lot of gas from many other wells so there could be a little impact on the incremental gas that we were to produce from this well.
But barring that, everything is under control.
Unidentified Participant
Okay, and the order we got from Gale, is it a renewed contract or a totally new contract?
Paras Shantilal Savla
It’s a new contract. The one that we. You’re talking about the one that we had given out to the exchanges, right? Are you talking of the same.
Unidentified Participant
Yeah, yeah, yes, yes, yes, yes. Okay, thank you. That’s all.
operator
Thank you. The next question comes from the line of shaker and individual investor. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity, sir. It’s a little bit micro silent. So we have this carbon capture utilization and storage team which has got 20,000 crore of funding. If we look at the mechanism over there, carbon capture is not in our, you know, expertise but capture, I mean compressing the, you know, carbon atom or transporting it or injecting it into, into the mature well for, you know, enhanced oil recovery or to, you know, storage it. We are actually having a too much of, you know, technological overlaps. So are we looking into this kind of a segment like the CCUS which is right now in a pilot stage, but can we expect it to be a very major, you know, growth vertical just like how SLB and Halliburton are currently doing for many people? And the second one, I mean one is just to, you know, reduce the terminal value for our oil and gas business.
One is CC well and the other two are compressed biogas and hydrogen. For compressed biogas we have this 5% manager mandate which is actually voluntary, I mean mandatory from FY 28 29. So how are we seeing this? Because even in compressed biogas we have to like, you know, seeing this compression and dehydration as, you know, a service. But the total addressable market size for compressed biogas doesn’t seem that huge. But for this PC us it looks so huge because out of the total 100%, around 20 to 30% goes to the storage and you know, crafting.
So are we looking at this particular thing as something which can reduce our terminal value?
Paras Shantilal Savla
Sir, I’ll just try to answer both of your questions in one answer. The markets with oil and gas, like any other markets are evolving. There are a lot of technological changes are happening. A lot of new products, new lines of businesses are evolving around the main line of business. So currently we are evaluating many opportunities. The one that you mentioned about the carbon capture, the one that you mentioned about biogas and all. So we are actively looking into each of these segments and we are trying to align with our main line of business as we speak today, nothing of it is formed.
But we are actively looking out at every opportunity and upon an appropriate time we will definitely try to get into such business where we are feel that it could be a good equation and with the kind of philosophy, business philosophy that we have at deep industry.
Unidentified Participant
That’s great. And the second one is.
operator
Thank you Mr. Shaker. You may rejoin the queue for the follow up questions. The next question comes from the line of Pankaj Matwani from Equirus Capital. Please go ahead.
Pankaj Motwani
Thank you for the opportunity. So I have one question online of the CAPEX plan. So. So earlier we have capex plans for the pec of around 160 crores and some Capex in the. For the. For the. And gas processing also. And also some equations plan in the dolphin. So. So now with the QRP now paused. So now. So now how does the company plan to fund the. Fund this capex and initiatives.
Rohan Vasantkumar Shah
So the regular capex of gas processing plants and rigs we are being funded through internal accruals and loans. So as I said earlier we have a very low debt on our books and we are pretty comfortable to increase it to certain level. So largely routine capex would be funded from internal accruals and debt. With regards to PEC capex also we would be funding it through.
Pankaj Motwani
Yeah.
Rohan Vasantkumar Shah
So yeah with regards to acquisition of targets it can differ a bit or maybe in next year.
Pankaj Motwani
Okay. So we are waiting for the QIP or like we will take debt for best for those equations.
Rohan Vasantkumar Shah
As of now we are not going ahead with it. But yeah, in future at opportune time we may think. But as of now. No.
Pankaj Motwani
Got it. And just one more CL clarification So like just want to know like where is the Prabha B currently deployed? Because as per my sources it got shifted from Mexico to Africa. So any reason for the change in deployment?
Rohan Vasantkumar Shah
Yeah. So Prabhai is currently deployed in African waters.
Pankaj Motwani
Any reason in deployment?
Rohan Vasantkumar Shah
Sorry, I didn’t get your.
Pankaj Motwani
I just want to know like the. So. So earlier it was in Mexico and now it has been shifted to Africa. So any reason for change?
Rohan Vasantkumar Shah
It can be floated from region to region. Right.
Pankaj Motwani
Okay, got it. Thank you.
operator
Thank you. The next question comes from the line of Kapil Kumar, an individual investor. Please go ahead.
Unidentified Participant
Yeah. Hi. I joined the call bit late. Not sure this already discussed regarding the fire in the Andhra. Well a while back. I just wanted to understand is there a penalty clause in the contract with ONGC if years. Why hasn’t been any provision made in this quarterly Result second related question is with the loss of the product there, the gas, while we were expected to maintain some baseline production that might get affected. So how will ONGC be compensated for that loss of product in the well?
Paras Shantilal Savla
So we do not have any such provisions in the contract for claiming any loss or penalty. But, but if you don’t produce the gas in itself is a penalty to you because if you’re not producing, you’re not, you’re not reaching the minimum threshold. And therefore that is in itself a penalty. So there is nothing as an external penalty. But our trust is to bring back the well, end the production in place very soon. And once we are out, we’ll again come resume where we were.
Unidentified Participant
Okay. How much of the PEC contract value got affected because of that fire? Let’s say that accounted for 2%, 5%, 10% of overall expected volumes.
Rohan Vasantkumar Shah
So it has been deferred, I would say because we will not be able to produce from that particular well at least for 2, 3 months. So the incremental revenue is deferred now for 2, 3 months.
Unidentified Participant
Okay. And it doesn’t bar us from any future ONGC contracts. The accident that, that even that happened there,
Paras Shantilal Savla
nothing of that that is, has. Got nothing to do accidents. And I not say that it’s very common. But this is part and parcel of oil and gas business. So even this kind of incidents happen with other contractors or with ONGC themselves. That is not something that because of this you have any penal actions. And all this is something that is a part and parcel of an oil and gas industry.
Unidentified Participant
Okay, sure. Thank you so much for answering my question.
operator
Thank you. The next question comes from the line of Shekhar, an individual investor. Please go ahead.
Unidentified Participant
Thank you for the follow up, sir. So it’s regarding H.F. hunter. I’m in the other vessel under Gulf Hampshire. It has been relocated from Mexico to Argentina. So are we getting any premium dairy because it’s harsh environment in Argentina?
Rohan Vasantkumar Shah
Sorry, if you can repeat your question. I am not getting it clear.
Unidentified Participant
But it’s regarding the other vessels. In Dolphin Offshore we have other vessels which is HF Hunter under jv. Right. So it has been moved from Mexico to Argentina. So Argentina waters are very harsh. So are we getting any premium day rates?
Rohan Vasantkumar Shah
So they are in line with what we were earlier used to get.
Unidentified Participant
Okay. And the other one is regarding India US Trade deal. They are saying that the custom duty on the industrial goods imported from America, we are going to waive it off. So we are actually importing a lot of compressors and stuff. From America. So is it going to positively impact us because the cost is going to reduce because of trade deal?
Rohan Vasantkumar Shah
Yes, definitely. Though we can get the duty credit but if duties would be reduced it will definitely help us reducing our capex.
Unidentified Participant
That’s good, that’s good. And the other one is regarding the equation of vessels. So how many more months are we expecting to finalize a contract and you know, buy out a vessel? On that often.
Rohan Vasantkumar Shah
We are actively evaluating but we would follow the policy which we otherwise follow in deep is we acquire assets or we do capex only on getting form order. So once we have order in place then only we can go ahead and buy the asset. So I think that policy we will follow in Dolphin as well.
Unidentified Participant
Okay, thank you sir. That’s it from myself.
Rohan Vasantkumar Shah
Thank you.
operator
Thank you ladies and gentlemen. As there are no further questions, I would now like to hand the conference over to Mr. Rohan Shah for closing remarks.
Rohan Vasantkumar Shah
Thank you everyone for joining this call. It was pleasure interaction with you all. If you have any further queries you can definitely approach us. We would happy to answer all your queries and we thank you Systematics for organizing this call.
operator
Thank you on behalf of Systematics Institutional equities. That concludes this conference. Thank you for joining us and you may now disconnect your lines.