Key Financial Figures (Q1 FY27 YoY Comparison)
- Revenue: ₹278.92 crores, up 40% year-on-year
- EBITDA: ₹131.8 crores, up 38.7% year-on-year
- EBITDA Margin: 43.6% (maintained in 43-45% range)
- Net Profit: ₹89.14 crores, up 44.5% year-on-year
Business Verticals and Operational Highlights
Gas Processing Services:
- Provides design, supply, installation, commissioning, and O&M of natural gas processing facilities
- Operating 3 plants (2 with ONGC, 1 with Cairn)
- Owns largest fleet in India with 80+ gas compressor units
- Commands 85% market share of outsourced gas compression in India
Integrated Project Management:
- Offers turnkey solutions to drill and complete wells under single contract
- Owns 20 onshore drilling and workover rigs (14 workover rigs, 6 drilling rigs)
- Current fleet utilization at 100%
- Approved drilling contractor for Kuwait Oil Company
- Exploring opportunities for higher capacity drilling rigs (2,000-3,000 HP)
Production Enhancement Contract:
- Secured ₹1,402 crores contract from ONGC for 15 years
- Took over field in April 2025, started with baseline production
- Incremental production delayed by 5-6 months due to incident at Mori 5 well
- Expect to deploy rigs soon and restart facilities
- Plan to drill new wells to support incremental production
- Expect incremental production contribution from October 2026
- Planned capex of approximately ₹150 crores by March 2027
- Expect ₹150+ crores revenue from this contract in FY28
- Targeting 2.5-3 lakh cubic meters per day gas volume
Offshore Services:
- Acquired Dolphin Offshore Enterprises through NCLT in 2022 (gained control January 2023)
- Currently reviving business step by step
- DP2 barge (Prabha Barge) already in operations
- Pursuing disciplined contract-backed fleet expansion strategy
- Evaluating both national and international tenders
- Dolphin contributed ₹43 crores revenue in Q1 FY27
- Expecting significant growth in offshore segment over next 2-3 years
Subsidiary Performance
- Dolphin Offshore: Contributed ₹43 crores in Q1 FY27, expected to contribute ₹150+ crores annually from current contract
- Dubai Subsidiaries: Contributed over ₹50 crores revenue in Q1 FY27 (gas processing services and equipment sales)
- Kandla Energy: Acquired for backward integration to improve operating margins by 1.5%, expected to start contributing in current financial year, requires ₹10-15 crores capex for facility revival
Order Book and Execution Outlook
- Total order book: ₹3,047 crores
- 60% of order book value to be executed over next 2-2.5 years
- Expected execution in FY27: ₹800 crores
- Bidding pipeline continuously hovering around ₹700-800 crores
Strategic Initiatives and New Ventures
Green Hydrogen:
- Entered MoU in FY26 to explore green hydrogen business
- Actively evaluating opportunities
- Already bid one tender for balance of plant EPC work with joint venture partner providing electrolyzer
- Outcome of tender pending
Geothermal Energy:
- Actively exploring opportunities in geothermal energy
- Leveraging existing onshore drilling expertise
- Core competencies in drilling transfer directly to geothermal projects
Capital Expenditure and Funding
- FY27 capex guidance: ₹250-300 crores (subject to contract awards)
- Funding through debt and internal accruals
- No equity raise planned currently
- Net debt-free balance sheet
Management Commentary and Outlook
- Very bullish on offshore segment growth opportunities
- Expect continued momentum in oil and gas services demand
- Targeting PAT of ₹500 crores in FY28 (₹350 crores expected in FY27)
- Standalone business expected to grow 18-20% in FY27
- Consolidated growth expected to exceed 25% in FY27
- Blended EBITDA margins expected to improve in FY28 and beyond
Related Party Transactions
- Loan given to Prabha Energy: Received back ₹86 crores
- Expect entire loan repayment by end of Q2 FY27
Management Changes
- Appointed Mr. Rajeev Sinha as Head of Operations
- Brings over 2 decades of oil and gas experience, previously with Vedanta
- Will oversee operations of compressors, rigs, and PEC