According to reports from Business Standard, Deep Industries reported a standalone net loss of ₹49.89 crore for the quarter ended March 2026, representing a significant improvement from the net loss of ₹208.33 crore recorded in the corresponding quarter of the previous year. The company's sales revenue increased by 25.79% to ₹171.62 crore in Q4 FY26, compared to ₹136.43 crore in Q4 FY25. The operating profit margin (OPM) improved to 37.38% in the current quarter from 36.99% in the previous year quarter. However, the quarter was impacted by a ₹208.28 crore non-cash write-off of inherited trade receivables from the Kandla Energy merger, which significantly affected the reported numbers. The company subsequently filed a corrigendum on May 14, 2026, correcting a typographical error in Note 6 of its audited standalone financial results for the year ended March 31, 2026, and submitted revised statements to BSE and NSE.
As reported by Business Standard, for the full financial year ended March 2026, Deep Industries achieved a net profit of ₹97.48 crore compared to a net loss of ₹115.43 crore in the previous year ended March 2025. The company's annual sales revenue surged by 47.22% to ₹702.96 crore in FY26 from ₹477.48 crore in FY25. The PBDT (Profit Before Depreciation and Tax) for the year increased by 40% to ₹299.42 crore from ₹214.10 crore in the previous year, while PBT (Profit Before Tax) grew by 47% to ₹256.58 crore from ₹174.27 crore. On a consolidated basis, revenue from operations grew 55% to ₹890.71 crore from ₹576.13 crore in FY25, with pre-exceptional profit before tax rising 65% to ₹347.95 crore. The Board also recommended a final dividend of ₹2.50 per equity share (50% on face value of ₹5 per share), subject to shareholder approval at the ensuing Annual General Meeting.
According to the financial data reported by Business Standard, the company's PBDT for Q4 FY26 stood at ₹70.20 crore, representing a 22% increase from ₹57.73 crore in Q4 FY25. The PBT for the quarter grew by 26% to ₹59.86 crore from ₹47.60 crore in the corresponding quarter of the previous year. On a consolidated basis, EBITDA grew by 61% to ₹424.82 crore from ₹263.79 crore in FY25, with EBITDA margin expanding by 89 basis points to 44%. Cash profit surged to ₹442 crore with a cash PAT margin of 46%. The company's return on equity (ROE) improved to 21.86% from 12.01% in the previous year, while return on capital employed (ROCE) increased to 19.27% from 13.06%. Net cash flow from operating activities increased to ₹270 crore in FY26 from ₹210 crore in FY25.
The Q4 results were significantly impacted by a ₹208.28 crore exceptional loss representing the write-off of trade receivables inherited when Deep Industries absorbed its wholly owned subsidiary Kandla Energy & Chemicals Limited through an NCLT-approved scheme of amalgamation effective March 31, 2025. Management's position, disclosed in Note 6 of the standalone results, is that after a twelve-month reconciliation and recovery exercise initiated post-merger, these legacy receivables were assessed as unrecoverable based on ageing, dispute status, and financial position of customers. The write-off is non-cash and non-recurring, with auditors flagging it as an Emphasis of Matter but not modifying their opinion on the accounts. Additionally, the company carries ₹161.11 crore in old trade receivables from the Dolphin Offshore group pertaining to legacy business conducted before the acquisition, which are currently subject to arbitration proceedings. The company's total assets grew to ₹2,59,499.28 lakhs as at March 31, 2026, from ₹2,39,271.12 lakhs as at March 31, 2025, with total equity standing at ₹2,11,229.55 lakhs.
Commenting on the performance, Mr. Paras S. Savla, Chairman and Managing Director, Deep Industries Limited, expressed satisfaction with the company's FY26 performance, attributing it to the company's ability to adapt to market dynamics and seize emerging opportunities. He noted that the write-off of Kandla receivables of ₹208.28 crore was a conscious decision to clean up the books and ensure higher returns to shareholders in years to come. The company has also entered into a Memorandum of Understanding (MOU) for venturing into the Green Hydrogen business, aimed at exploring new business areas and bidding for Green Hydrogen project tenders and contracts. Mr. Savla highlighted that the oil and gas sector is transitioning from "crisis management" to "structural rebalancing," with India fast-tracking efforts to reduce import dependence as part of a broader USD 500 billion opportunity in energy infrastructure by 2030. The company's diversified offerings include natural gas compression, dehydration, drilling and workover rigs, integrated project management, and charter hiring of gas processing services, covering more than 70% of the post-exploration value chain.
