Deep Industries (DIL)

[rishitdedhia13]

DEEP INDUSTRIES TO NDTVProfitIndia (KYC)

Over 90% Services Out Of ONGC Suspensios

ONGC Has Revoked Provisional Suspension

Maintain 30-35% Growth Outlook On Yearly Basis

Expect To Reach 50% EBIDTA Margins In 2 Years

Margins Are On An Improving Trend

Expect Govt Push To Benefit Our Services

Demand Likely To Increase In Current Scenario

[Arash_Mishra]

[hnk_so]

Good notes on DEEP Industries

Deep Industries - From Service Player to Integrated Energy Platform

Revocation + Demand Surge + Execution = Multilayered Re-rating Setup

The BIG Trigger - Suspension Revoked = Growth Engine Reopened

“More than 90% of our services are out of provisional suspension”
Can now bid again for ONGC across key segments

• Gas compression, dehydration, drilling rigs, DPDU, etc.
  Earlier restriction = growth cap → Now fully unlocked
  This is not incremental. This is a structural reset of opportunity size

Macro Tailwind - India Energy Security Shift

“Demand in our business is likely to go up… domestic production focus”
Geopolitical tensions → Push for local production
Higher domestic drilling → More service demand
Deep positioned as direct beneficiary of this policy shift
This is a sector tailwind, not company-specific luck

Order Book Strength + Pipeline Visibility
“Bidding pipeline is quite hefty”
Current OB ~ ₹3,000 Cr
Expect strong order conversion in next 2 quarters

Key Insight:
Order book is not peak → Next leg of expansion is loading

Growth Guidance Already Strong (With Upgrade Optionality)

“30 to 35% growth… may go higher”
Base guidance: 30 to 35% YoY
Demand surprise → Potential upgrade ahead
Market loves upside surprises, not just guidance

Fleet Utilisation - Silent Earnings Multiplier

“Almost entire fleet is utilized”
Full asset deployment after many years
Strong demand absorption visible
High utilisation = operating leverage kick-in
This is where EPS acceleration begins

Margin Expansion - Real but Phased

“50% margins possible… over 2 years”
Current: ~45 to 46%
Short term: gradual improvement
Medium term: structural expansion
Not hype-driven → Execution-driven margin story

Value Added Bundling = Core Moat Building

“Bundling services improves efficiency and margins”
Earlier: standalone services
Now: integrated contracts

Benefits:
Better client stickiness
Higher contract value
Margin uplift
Transition from vendor → solution provider

Integration Play - The Real Re-rating Lever
Already covering ~70% of value chain
Target: increase significantly over time
Goal: One-stop integrated player

Integrated players command:
Higher margins
Higher multiples
Stronger positioning

Near Term Trigger - Rig Deployment

“Third rig to be deployed in next 1 week”
Continuous asset deployment
Improves revenue visibility
Small trigger → But confirms execution on track

New Vertical - Green Hydrogen Entry
MOU signed for green hydrogen projects
Deep will handle balance of plant execution

Optionality play:
Oil & Gas → Expanding into future energy ecosystem

11 | Kandla Project - Margin Catalyst Ahead
Expected: ~Q2 FY27
Supports chemical consumption internally
Can improve operating margins
This is a hidden margin lever, not fully priced in

12 | Capex = Growth Visibility Continues
₹150 Cr capex planned (PEC business)
Focus: drilling new wells
Growth backed by capital deployment, not just commentary

No Buy/Sell Recommendation
#StocksInFocus #StocksToWatch #Deep #Crude #OIL

[yash_bhalani]

@yash_bhalani

in ACCOUNTING term Kandla is a 100% subsidairy of the deep aquire via NCLT, writte off the Inventory & receivables heat the P&L for a TAX benefit in future But subsidiary not benefit becuase its a subsidairy so here deep trying to potential merger with kandla for a tax benefit, I am not a Charted maybe i am worng, any one charted here please verify this

I told you the merger will potentially happen.

dis : i am not invested

[Prakash_Kumar1]

New order worth 69 Cr. for 3 years: https://www.bseindia.com/xml-data/corpfiling/AttachLive/ae339dd1-2a46-403e-a4c1-12dfd3cad173.pdf