Deep Industries Q2 FY27: 33.7% Revenue Growth

DEEPINDS Growth Guidance: Revenue growth expected between 30% and 35% for FY27 and FY28. Profit Projections: PAT forecasted between Rs.350-370 crore for FY27, Rs.470-500 crore for FY28. Order Book: Current order book Rs.3,089 crore providing revenue visibility over two years. Bidding Pipeline: Active bids worth Rs.700-800 crore in progress. Expansion Plans: Exploring high-capacity drilling rigs through JVs; increasing focus on biogas (CBG) and green hydrogen sectors. Concerns: Project delays due to 5-6 month Morifai incident impact; EBITDA margins may fluctuate 300-400 bps; global risks include energy supply issues and high logistics/insurance costs. Strong top‑line: double‑digit revenue growth (Q2 +33.7%, H1 +36.6%) shows continued demand and execution on a large order book (~Rs.3,089 Cr). Profitability mixed: PAT rose but EBITDA margin compressed materially (46.6% -> 39.6%), signaling margin pressure or mix/other‑income shifts that could temper earnings leverage. Cash generation improving: operating cash flow rose to Rs.270 Cr (up ~28.6%), with receivable days cut from 131 to 99 — supports liquidity and reinvestment or shareholder returns. Conservative balance sheet: total debt ~Rs.232.94 Cr, debt/equity ~0.13x — low leverage reduces financial risk during growth. Management outlook is aggressive but clear: 30–35% revenue growth for FY27/FY28 with PAT targets (Rs.350–370 Cr FY27, Rs.470–500 Cr FY28) — provides multi‑year revenue/earnings visibility if achieved.