Deep Industries’ Profit Up by 54% in June Quarter

Mumbai, 4 August 2025: Deep Industries Ltd witnessed a sharp rise in its stock price following the announcement of robust Q1FY26 earnings. The company reported a year-on-year (YoY) growth of 54% in standalone net profit to ₹4,676.23 lakh, along with a 27% quarterly (QoQ) revenue increase. The Board has also fixed 22 August 2025 as the record date for the proposed final dividend, subject to shareholder approval.

Standalone Net Profit Grows 54% YoY in Q1FY26 as Revenue Rises to ₹17,259.68 Lakh

Deep Industries posted strong standalone financial results for the quarter ended 30 June 2025 (Q1FY26). Revenue from operations stood at ₹17,259.68 lakh, up 54.5% from ₹11,172.81 lakh in Q1FY25, and up 27% QoQ from ₹13,643.47 lakh in Q4FY25.

Total income increased to ₹18,668.13 lakh from ₹11,964.34 lakh YoY. Profit before tax rose to ₹6,260.74 lakh, while tax expense stood at ₹1,584.51 lakh. The resulting net profit (PAT) surged to ₹4,676.23 lakh, reflecting a 53.9% YoY and 24.9% QoQ increase. Earnings per share (EPS) improved to ₹7.31 from ₹4.75 in the same period last year.

Consolidated Turnaround: Profit of ₹6,170.09 Lakh in Q1FY26 Reverses Q4FY25 Loss of ₹20,666.61 Lakh

On a consolidated basis, Deep Industries reported a significant turnaround. The company posted a consolidated net profit of ₹6,170.09 lakh, reversing a loss of ₹20,666.61 lakh in the previous quarter. Revenue from operations reached ₹21,293.24 lakh, marking a YoY growth of 58.5%.

Board Approves Key Reappointments and Strategic Moves to Strengthen Governance and Growth

The Board of Directors approved the reappointment of key leadership personnel for five-year terms effective from 2025–2026:

• Mr. Paras Shantilal Savla as Chairman & Managing Director from 1 September 2025
• Mr. Rupesh Kantilal Savla as Managing Director from 1 September 2025
• Mr. Rohan Vasantkumar Shah as Whole-time Director from 24 June 2026
• Dr. Kirit Nanubhai Shelat and Mrs. Shaily Dedhia as Independent Directors for second five-year terms

Additionally, M/s RPAP & Co. has been appointed as the Secretarial Auditor for FY25 to FY30. These reappointments and new auditor appointments are subject to shareholder approval in the upcoming AGM.

Strategic Subsidiary Creation and Business Expansion Into Hydrocarbon Manufacturing Approved

The Board also approved two strategic decisions aimed at strengthening the company’s long-term operational efficiency and integration:

• Deep Natural Resources Ltd is set to become a subsidiary, following the acquisition of a significant stake.
• The company will amend its Memorandum of Association to include chemical and hydrocarbon fluid manufacturing, enabling in-house sourcing and boosting value chain control.

Final Dividend Record Date Set for August 22, 2025

Deep Industries has declared Friday, 22 August 2025, as the record date for the final dividend for FY25, subject to approval at the AGM. The dividend will be payable to shareholders whose names appear in the company’s register as of the record date.

Deep Industries IPO and Dividend Timelines: Key Dates to Remember

• Record Date for Final Dividend:22 August 2025
• Reappointments Effective From:1 September 2025 and 24 June 2026
• AGM Date (Pending): To be announced

Financial and Profitability Metrics Show Strong Quarter But Mixed Annual Trends

In terms of key performance metrics, Deep Industries reported a quarterly revenue growth (YoY) of 61.6%, while operating profit margin (OPM) for the quarter stood at a strong 40.9%. However, net profit growth over the trailing twelve months (TTM) remained in negative territory at -152.7%, and both return on equity (ROE) and return on assets (RoA) were also negative at -5% and -3.8%, respectively.

Despite the negative TTM indicators, the company showed strong relative returns, outperforming Nifty50 by 20.9% and its sector peers by 22.9% in the last quarter. With a price-to-book ratio of 2.2, Deep Industries remains below the industry median, and the PEG (Price/Earnings to Growth) ratio at 0.3 signals undervaluation based on its earnings growth outlook.

Share Price Climbs Over 8% Following Earnings and Dividend Announcement

Following the earnings announcement, shares of Deep Industries Ltd (NSE: DEEPINDS) surged 8.16%, rising by ₹39.35 to close at ₹521.30 on 4 August 2025. The stock opened at ₹500.00, touched a high of ₹525.00, and recorded a low of ₹493.35 during the day. With a market capitalisation of ₹3,350 crore, the rally came on the back of renewed investor optimism driven by robust quarterly earnings, dividend clarity, and strategic business announcements. The stock continues to recover toward its 52-week high of ₹624.40, well above the 52-week low of ₹297.65.

About Deep Industries Ltd: Leading Oil & Gas Services Firm Diversifying Into Chemical Manufacturing

Headquartered in Ahmedabad, Deep Industries Ltd is a prominent player in India’s oil and gas services sector. It offers onshore and offshore services including gas compression, drilling, and workover rigs. The company is actively diversifying into chemical and hydrocarbon manufacturing to vertically integrate its operations and strengthen its energy portfolio.

REF:https://nsearchives.nseindia.com/corporate/DEEPINDS_04082025140509_Outcome.pdf

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