Deep Industries flags other-income contribution in Q1FY27 profit
Consolidated operating margin was 38.77%, while management pointed to a sustained upstream capex cycle through the decade.
Filed 28 Jul 2026, 13:31 IST · DEEPINDS (DEEPINDS)
Key takeaways
- Consolidated net profit was Rs 89.14 cr in Q1FY27, with operating margin at 38.77%.
- Profit before tax included Rs 23.68 cr of other income, so earnings were not solely operating-led.
- Management said India’s E&P investment target is US$100 bn by 2030 and expects a sustained upstream capex cycle through the decade.
Q1FY27 profit included a non-operating contribution
Deep Industries reported consolidated net profit of Rs 89.14 cr on revenue of Rs 278.92 cr, with operating profit at a 38.77% margin. Profit before tax included Rs 23.68 cr of other income, so the quarter’s earnings were not entirely generated by operations. Interest of Rs 4.3 cr, depreciation of Rs 15.88 cr and a 20.15% tax rate bridged operating profit to reported net profit.
Management points to a long upstream investment cycle
Management said India’s E&P investment target is US$100 bn by 2030 and that it expects a sustained upstream capex cycle through the decade. The company also said it sees a multi-year onshore activity pipeline. These comments provide the stated context for its oil and gas services business, rather than a quarter-on-quarter or year-on-year growth comparison.
Expansion extends beyond the existing service model
The presentation said two similar gas-processing facilities have been provided to ONGC assets at Bokaro and Kakinada. Management also described its move to convert EPC projects into charter-hire services. Separately, the company said it has launched Blended Interactive Learning for primary education in Gujarat, including Smart Class tools delivered through digital devices.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹279 cr |
| Other income | ₹24 cr |
| Expenses | ₹171 cr |
| Operating profit | ₹108 cr |
| Operating margin (%) | 38.77% |
| Interest | ₹4 cr |
| Depreciation | ₹16 cr |
| Profit before tax | ₹112 cr |
| Tax | ₹23 cr |
| Net profit | ₹89 cr |
| EPS (₹) | ₹13.34 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- India’s E&P investment target is US$100 billion by 2030.
- The company expects a sustained upstream capex cycle through the decade.
- The company sees a multi-year onshore activity pipeline.
Expansion
- Two similar gas-processing facilities have been provided to ONGC assets at Bokaro and Kakinada.
New initiatives
- The company has launched Blended Interactive Learning for primary education in Gujarat.
- The company is converting EPC projects into charter-hire services.
- The company’s Smart Class uses sLate to deliver interactive educational content through digital devices.
Competition
- Deep Industries describes itself as India’s only integrated onshore and offshore oil and gas service provider.
What to watch
- Whether operating margin remains at or above 38.77% in the next reported quarter.
- Updates on the two gas-processing facilities provided to ONGC assets at Bokaro and Kakinada.
- Any further management commentary on the US$100 bn E&P investment target and the upstream capex cycle.