Financial Results for H1 FY27 (Consolidated)

The company reported its financial results for the second quarter and first half ended September 30, 2026:

H1 FY27 Performance (₹ Million):

  • Income from Operations: ₹1194 Mn (compared to ₹1027 Mn in H1 FY26, representing 16% YoY growth)
  • EBITDA: ₹232 Mn (compared to ₹203 Mn in H1 FY26)
  • EBITDA Margin: 19.43% (compared to 19.77% in H1 FY26)
  • Profit After Tax: ₹133 Mn (compared to ₹108 Mn in H1 FY26, representing 23% YoY growth)
  • PAT Margin: 11.14% (compared to 10.52% in H1 FY26)
  • Comprehensive Income: ₹201 Mn (including PAT and OCI, compared to ₹108 Mn in corresponding period last year)

Full Year FY26 Reference:

  • Income from Operations: ₹2430 Mn
  • EBITDA: ₹583 Mn
  • EBITDA Margin: 24%
  • PAT: ₹330 Mn
  • PAT Margin: 13.58%

Operational Highlights and Challenges

Q2 execution was impacted by heavy monsoons and scheduled equipment maintenance, which are described as temporary disruptions expected to ease in H2. PAT in Q2 was specifically impacted by lower operating revenue, higher diesel prices, and other input costs. Management views these as cost-related challenges rather than concerns with underlying business fundamentals.

Order Book and Business Development

  • Order book reached an all-time high of ₹7,671 Mn, providing strong revenue visibility
  • Includes Oman exploration services order exceeding ₹60 Mn
  • Company continues to execute 20 operations across eight states
  • Maintained zero Lost Time Injuries (LTIs)

Capacity Expansion and Funding

Funding for planned capex has been secured. New drilling rigs and equipment are expected in Q3 FY27, with deployment expected to enhance execution capacity, accelerate mobilization, and support H2 growth and profitability.

Jharkhand Coal Block Development

Exploration has been completed for Jharkhand Coal Block and the Geological Report has been approved. The mining plan is at an advanced stage, with submission expected shortly. The block spans 266 hectares with geological reserves of over 84 million tons. The company has signed a Coal Mine Development and Production Agreement with the Ministry of Coal, Government of India.

International Operations

Oman JV Performance:

  • ARL (first Oman JV) reported 603% YoY increase in FY26 PAT to OMR 352,000 (~₹86.69 Mn)
  • Second Oman JV finalized its Geological Report following an airborne survey covering over 1,400 sq. km
  • Survey identified 12 prospective copper-gold targets
  • Surface geophysical investigations are expected to precede targeted drilling

Corporate Developments

  • Received NSE and BSE trading approvals for equity shares allotted upon conversion of preferential warrants
  • This followed receipt of the balance 75% consideration, completing a key capital-raising milestone
  • CRISIL upgraded the Company's rating to BBB+/Stable/A2 from BBB/Positive/A3+ during H1 FY27

Management Commentary

Mr. Vikas Jain, Chairman & Managing Director, expressed optimism about H2 FY2026-27 growth prospects, citing the record order book of ₹768 crore, planned capacity expansion, and encouraging developments across domestic and international operations. He emphasized that new equipment delivery in Q3 should significantly enhance execution capabilities and support stronger revenue generation and operating profitability in the second half.

Business Overview

SWPEL is an Integrated Service Provider providing end-to-end drilling & exploration of natural resources including Coal, Ferrous, Non-Ferrous & Atomic Minerals, Conventional & non-conventional Oil & Gas, and groundwater investigation. The company has completed approximately 3.3 million meters of drilling, 6.5 Lac meter of Geophysical logging, 515 sq.km. of 3D Seismic surveys, and 411 LKM of 2D seismic Survey using 47 state-of-art drilling rigs.