NSE: DEEPINDS · BSE 543288 · Oil & Gas Field Services · Report date: 2026-07-25
P/E 10.0 vs peer median 22Sales 33%/yr · OPM 38%Promoter 63.5% steadyMarch write-offs (Dolphin)115 debtor days
Market Cap
₹3,069 Cr
CMP
₹480
ROCE
16.0%
ROE
20.2%
P/E (ttm)
10.0
Revenue FY26
₹703 Cr
PAT FY26
₹97 Cr
D/E
0.12
Promoter
63.5%
OPM
38%
A1 · Business Model & Moat
screener.in · company disclosures
Since 1991: air & gas compression, drilling/workover rigs, gas dehydration and integrated
project management for oil & gas producers — covering 70%+ of post-exploration services in its
niche. The 2023 Dolphin Offshore acquisition added offshore support: barge Prabha (refurbished,
on a 3-year lease from May-2025 at ≈₹90 Cr/yr revenue at 90–95% margin) and a 37% JV anchor-handling
tug (USD 17–20k/day at ~50% margin).
Moat assessment
Efficient scale — strong: dominant share of a niche too small for global service majors.
Switching costs — moderate: 5-year charter contracts with ONGC/Oil India lock revenue.
Asset specificity: compression/rig fleet redeploys poorly — cuts both ways.
Model quality
Contracted revenue: multi-year ONGC charters give order-book visibility.
Government-client receivables: 115 debtor days is the price of the moat.
D/E 0.12 with ROE 20.2% — the balance sheet earns without leverage.
Prabha barge: 3-year lease from May-2025, ≈₹90 Cr/yr at 90–95% margin — the Dolphin
acquisition finally earning.
[source]
The ₹1,400 Cr order win (Sep-2024) still anchors the multi-year book.
[source]
Tailwind: India gas-production push (ONGC/OIL capex on ageing fields needs exactly
these services). Order momentum is steady, small-ticket, five-year-tenored.
A5 · Financials — 5-Year Trend
screener.in annual P&L
FY
Sales ₹Cr
YoY
PAT ₹Cr
OPM
FY22
272
—
69
39%
FY23
301
+10.7%
78
39%
FY24
382
+26.9%
104
39%
FY25
477
+24.9%
130
40%
FY26
703
+47.4%
97
38%
Five years of 38-40% operating margins through a doubling of revenue. FY26 PAT (₹97 Cr) is depressed by non-cash Dolphin-related charges — core operating profit compounded 31%/yr (₹116 → ₹264 Cr).
A8 · Balance Sheet & Fraud Filter
screener.in · FY26
Item
FY26 ₹Cr
FY25 ₹Cr
Equity + Reserves
1,663
1,371
Borrowings
196
201
Fixed Assets + CWIP
1,192
1,097
Other assets
836
644
Total Assets
2,091
1,820
Fraud filter
✅CFO quality — ₹218 Cr CFO vs ₹97 Cr PAT — the write-offs are non-cash; cash conversion is strong
⚠️March-quarter charges — other income −₹239 Cr (Q4 FY25) and −₹198 Cr (Q4 FY26) — Dolphin impairments; ask when they end
⚠️Receivable days — 115 — PSU clients; the FY25→26 'other assets' growth tracks revenue
✅Leverage — D/E 0.12
✅Promoter — 63.5% steady across 12 quarters, no pledge flagged
A9 · Quarterly Cadence
screener.in · last 6 quarters (standalone)
Quarter
Sales ₹Cr
YoY
OP ₹Cr
OPM
PAT ₹Cr
Mar-25
136
+29.5%
50
37%
-208
Jun-25
173
+54.5%
63
37%
47
Sep-25
179
+64.2%
67
37%
50
Dec-25
179
+49.2%
70
39%
51
Mar-26
172
+26.5%
64
37%
-50
The pattern to understand before anything else: operations print ₹47-51 Cr PAT for three quarters, then the March quarter absorbs a large non-cash charge (−₹208 Cr Q4 FY25, −₹50 Cr Q4 FY26 net). Consolidated Q4 FY26: sales ₹249 Cr, net −₹14 Cr. These are Dolphin-acquisition impairments — shrinking, but not yet finished.
A10 · Valuation
screener.in peers
Company
Mkt Cap ₹Cr
P/E
ROCE
Deep Industries
3,069
10.0
16.0%
Asian Energy
1,730
30.0
16.5%
Teja Engineering
432
69.0
33.1%
DHP India
154
13.9
6.5%
Peer median (5)
432
22.0
16.0%
10× earnings for 33%/yr sales growth at 38% margins with a 20% ROE — the cheapest quality on the board. The discount IS the March-quarter write-off pattern: the market will not pay up until a fiscal year closes clean.
A13 · Risks
sorted by severity
HIGH
Write-off overhang
until a March quarter passes without a Dolphin charge, reported EPS stays untrustworthy and the discount persists.
Mitigant: Q4 FY27 is the test
MEDIUM
Client concentration
ONGC/Oil India dominate the book; a PSU capex pause stalls everything.
Mitigant: 5-year charter tenors smooth it
MEDIUM
Receivables
115 debtor days of PSU paper; a payment-cycle stretch hits CFO.
Mitigant: track H1 receivables vs revenue
MEDIUM
Offshore execution
Prabha's 90-95% margin lease is a single asset with single-client risk.
Mitigant: lease runs to 2028
LOW
Leverage
D/E 0.12 — headroom, not risk.
Mitigant: —
A14 · Milestones to Watch
research tracking signals — not investment signals
Q4 FY27 without an impairment — the single biggest re-rating trigger.
Order wins cadence — ₹50-100 Cr ONGC LoAs continuing quarterly.
Prabha lease renewal/extension economics (2028).
Receivable days ≤120 held while revenue compounds.
Circuit band verification — unverified this week; confirm 10/20% band before any order.
A15 · Ownership
screener.in shareholding
Quarter
Promoter
FII
DII
Public
Sep-24
63.49%
2.08%
0.00%
34.43%
Mar-25
63.49%
2.17%
1.17%
33.17%
Mar-26
63.49%
1.81%
1.13%
33.57%
Jun-26
63.49%
1.47%
1.53%
33.50%
Promoter frozen at 63.49% for twelve straight quarters — through the Dolphin write-offs, no selling. DIIs entered from zero in Dec-2024.
Part B · Technical Posture
All technical levels are Research Reference Levels from the 25-Jul weekly pipeline (TradingView scanner data) — not buy/sell signals. Regime this week: Pullback in Bear, Swing Confidence 0/3 — every setup is WATCH-ONLY by rule.
Ref Entry
₹479.60
Stop · 1M low
₹431.93
Target
₹578.00
Net R:R
2.04 : 1
⚠ VERIFY FIRST: circuit band unverified this week — confirm upper/lower limits on the terminal
before any order; a 5%/2% band disqualifies it under the standing rules.
Highest-ADR structure that still clears liquidity (4.0% ADR, ₹8.1 Cr/day at the floor of the gate).
TradingView weekly consensus buy (MA score 0.80); +4.4% on the ONGC order day.
9.9% stop at the one-month low is the widest of the five — sized down to 596 shares so it still costs 1.00% of capital.
Research Reference Only — Not an Investment Recommendation · Primaegis Research Pipeline
💡 INVESTMENT CASE SUMMARY
Deep Industries is the value case of the five: a 70%-share niche services franchise compounding sales at 33%/yr at 38% operating margins, promoters unmoved at 63.5%, D/E 0.12 — priced at 10× against a peer median of 22×. The discount has a name: every March quarter since the Dolphin Offshore acquisition has absorbed a large non-cash impairment (−₹239 Cr, then −₹198 Cr) that wipes the reported quarter. The charges are shrinking and the acquired assets (Prabha barge at 90-95% margin) now earn — one clean fiscal close is the re-rating trigger the price is waiting for.
📊 FUNDAMENTAL PILLARS
Cheapest quality on the board
10× vs peers at 22× for faster growth and equal ROCE. Source: A10
⚠️ This is an internal, unregulated analytical opinion of Primaegis Research for internal pipeline
use only. It does NOT constitute a SEBI-regulated investment recommendation, research report, or
solicitation to buy, sell, or hold any security. Consult a SEBI-registered investment advisor before
making any financial decision.
⚠️ IMPORTANT DISCLAIMER
This document is a research and educational output only, generated by the Primaegis Research
Investment Analysis Pipeline. Neither Ameya Pimpalgaonkar nor any contributor to this report is a
SEBI registered investment advisor or research analyst. Nothing in this report constitutes
investment advice, a research recommendation, or a solicitation to buy, sell, or hold any security,
fund, or financial instrument under SEBI (Research Analyst) Regulations, 2014 or any other
applicable law. All financial data is sourced from publicly available disclosures (screener.in,
NSE/BSE filings, company releases). All technical levels are reference levels for research tracking
only. Always conduct your own due diligence and consult a SEBI registered investment advisor before
making any financial decision. Generated: 2026-07-25 | Primaegis Research · Not for distribution.