Introduction
Established in 1991, Deep Industries Limited (DIL) is a 34-year-old company engaged in providing comprehensive solutions across the energy sector. Over the years, the company has emerged as a leading “One Stop Solution” provider in the oil and gas industry, specializing in Air and Gas Compression Services, Drilling and Workover Services, Gas Dehydration Services, and Integrated Project Management Services. Through its diverse service offerings and state-of-the-art equipment, DIL supports operations spanning from exploration and production to midstream services, catering to both domestic and global markets.
The company has built a strong reputation by strategically positioning itself to efficiently serve India’s oil and gas markets while also expanding its global footprint. It owns a modern fleet of fuel-efficient and technologically advanced equipment and employs a team of highly skilled technical professionals. This focus on operational excellence allows DIL to maintain high-quality service standards and peak performance levels. By providing equipment on rental and charter hire basis, the company helps clients eliminate ownership costs, reduce maintenance and storage expenses, and focus on their core operations without large capital investments, while still ensuring compliance with industry and regulatory requirements.
Deep Industries Limited places great emphasis on quality, health, safety, and environmental standards as integral parts of its corporate governance. The company holds ISO certifications—ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018—awarded through Bureau Veritas, demonstrating its unwavering commitment to global standards of excellence.
Originally incorporated as Deep CH4 Limited on November 15, 2006, with the Registrar of Companies, Ahmedabad, the company underwent multiple transformations, including a name change to Deep Industries Limited effective September 25, 2020. Its operations span Natural Gas Compression Services, Drilling and Workover Rigs Services, and Gas Dehydration Services, with growing expertise in Integrated Project Management. Over time, DIL has strengthened its international presence through strategic tie-ups and acquisitions in the oilfield services sector overseas.
In a major milestone, the Oil and Gas Service Undertaking of Deep Energy Resources Limited (DERL) was transferred and demerged into Deep Industries Limited through a Scheme of Arrangement for Demerger effective April 1, 2017, further enhancing the company’s service portfolio. Subsequent years saw significant corporate developments—Deep Onshore Services Private Limited and Raas Equipment Private Limited became subsidiaries in 2021, followed by Deep Onshore Drilling Services Private Limited and Deep International DMCC through the demerger process.
In 2023, through its wholly owned subsidiary Deep Onshore Services Private Limited, DIL acquired a 94.98% equity stake in Dolphin Offshore Enterprises (India) Limited, marking its entry into offshore services. Later that year, the company also acquired a 74% equity stake in Breitling Drilling Private Limited, expanding its drilling capabilities. In 2024, Deep Industries incorporated a wholly owned subsidiary, SAAR International FZ-LLC, in the Ras Al-Khaimah Free Zone, UAE, to serve the Middle Eastern energy sector. Subsequently, Deep Exploration Services Private Limited became a direct wholly owned subsidiary in January 2025.
Further, following approval from the Hon’ble NCLT, Deep Onshore Services Private Limited acquired Dolphin Offshore Shipping Limited under the Corporate Insolvency Resolution Process (CIRP), making it a step-down subsidiary effective January 21, 2025. Additionally, the company acquired 100% equity in Kandla Energy and Chemicals Limited on March 31, 2025, making it a wholly owned subsidiary.
The company’s subsidiary structure includes Deep International DMCC, Deep Exploration Services Private Limited, RAAS Equipment Private Limited, Deep Onshore Services Private Limited, Deep Onshore Drilling Services Private Limited, Breitling Drilling Private Limited, Dolphin Offshore Enterprises (India) Limited, SAAR International FZ-LLC, and Dolphin Offshore Shipping Limited.
Deep Industries Limited has a rich legacy of milestones that underline its leadership in India’s oil and gas service industry. In 1994, it became the first company in India to provide high-pressure air compressors on a charter hire basis, followed by becoming the first to offer natural gas compressors on hire in 1997. The company set new benchmarks by partnering with Valerus Compression Services and Hanover Asia Inc. in 2001 to strengthen its compression business. By 2005, it had achieved ISO 9001:2000 certification and commenced Workover Rig operations, further diversifying its service base.
The company went public in 2006 and commissioned its first rig contract under ONGC in 2007. Over subsequent years, it introduced new services, obtained ISO 14001 and BS OHSAS 18001 certifications, and began drilling rig operations in 2010. In 2015, it became the first company in India to operate a gas dehydration plant on a hiring basis for ONGC Rajahmundry. By 2016, it had commissioned two 1000 HP drilling rigs and expanded into integrated project management.
In 2018, DIL established Deep International DMCC in Dubai to cater to international clients and began diversifying into mud logging and engineering services in 2019. The company received approval from Kuwait Oil Company in 2020 as an “Approved Contractor,” underscoring its global credibility. In the same year, it formally segregated its Oil & Gas Field Services and Oil & Gas Exploration & Production businesses into two separate listed entities through a demerger approved by NCLT, Ahmedabad.
Subsidiaries
RAAS Equipment Private Limited
RAAS Equipment Private Limited is an ISO 9001:2015 and ISO 14001:2015 certified company and a proud subsidiary of Deep Industries Limited, one of India’s leading listed companies in the oil and gas services sector. RAAS serves as a reliable and cost-effective provider of specialized equipment and services for the energy industry, deriving strong legacy advantages from its association with Deep Industries, which commands nearly 85% of India’s market share in charter hire of natural gas compressors. Supported by a robust supply-chain management network, efficient logistics, and a process-driven operational framework, RAAS has earned a solid reputation for technical competence, consistency, and customer satisfaction. The company’s products are designed with full compliance to regulatory and PESO standards, offering oil-free compression technology, optimum design efficiency, superior power-to-flow ratios, low noise levels, and minimal hydraulic shocks. RAAS stands out for its uncompromising approach to safety, ease of installation, and seamless performance, making it a trusted partner for several leading oil and gas operators in India.
Dolphin Offshore Enterprises (India) Limited
Dolphin Offshore Enterprises (India) Limited (DOEIL), incorporated on May 17, 1979, is a pioneering name in India’s offshore oil and gas services sector and a key subsidiary within the Deep Industries Group. Established under the visionary leadership of Mr. Shavax A. Lal, former Secretary to Governor General Shri C. Rajagopalachari, and Rear Admiral Kirpal Singh, a decorated naval officer, the company was founded with the mission of building national expertise in offshore engineering and subsea operations. Through its early collaboration with Taylor Diving & Salvage Company Inc., a Halliburton subsidiary, DOEIL became the first Indian company to acquire full technological capability in diving and underwater engineering. Over the years, it has expanded into multiple domains including diving and underwater services, fabrication and installation, turnkey EPC projects, rig and ship repairs, remotely operated vehicle (ROV) operations, and design engineering. The company owns and operates a diversified marine fleet comprising workboats, barges, and support vessels, and has successfully executed major offshore projects for ONGC and other global clients. DOEIL is certified for ISO 9001:2008, ISO 14001:2004, and OHSAS 18001:2008, reflecting its commitment to international standards of safety, quality, and environmental management. Listed on both the BSE and NSE, the company continues to strengthen its offshore capabilities while investing in training and technological advancement to meet the evolving challenges of deepwater exploration and subsea infrastructure.
Investments and Joint Ventures
The management elaborated on recent strategic investments aimed at expanding offshore capabilities. A USD 2.2 million investment was made in HF Hunter, a joint venture established for the acquisition of a tug vessel that has already commenced operations in the current financial year. The tug is expected to generate daily revenues between USD 17,000 and USD 20,000, with EBITDA margins around 50%. Deep Industries holds a 37% stake in this joint venture.
Additionally, the company has invested USD 1 million in Frisco Global PTE, further strengthening its international presence and offshore service portfolio.
Business
Deep Industries Limited (DIL) is a leading energy sector enterprise with extensive expertise across upstream and midstream segments of the oil and gas industry. The company specializes in delivering a wide range of services and equipment solutions, ensuring excellence in Health, Safety, Environment, and Quality (HSEQ) across all operations. With decades of experience and a focus on innovation, Deep Industries has evolved into India’s foremost “One Stop Solution” provider for the energy and oilfield services sector.
Upstream Service: Drilling and Workover Services
Deep Industries Limited is one of India’s leading service providers for coring, air drilling, workover, and drilling rig services, with over 13 years of operational experience in this domain. The company delivers complete rig packages, inclusive of all associated equipment and services, to meet the complex needs of onshore oil and gas operations.
Its extensive fleet comprises a wide range of onshore workover rigs (150 HP to 1000 HP) and drilling rigs (350 HP to 1500 HP), along with coring and air drilling rigs capable of handling varied geological and operational challenges.
The company has successfully executed numerous projects across diverse and demanding terrains—including desert regions, eco-sensitive zones, and mountainous areas—demonstrating its operational resilience and technical capability.
Deep Industries’ highly trained professional workforce, supported by a fully operable fleet of advanced rigs, ensures the highest levels of safety, efficiency, and productivity. These services are offered on both charter hire and dry lease basis, giving clients flexible, cost-efficient access to world-class drilling and workover solutions without the burden of ownership.
Upstream Service: Integrated Project Management (IPM) Services
Deep Industries Limited is the first Indian company to introduce Integrated Project Management (IPM) Services as a turnkey solution encompassing drilling, completion, and associated services under a single contract. Leveraging a combination of in-house expertise and strategic third-party partnerships, the company provides complete end-to-end project execution for oil and gas exploration and production operations.
Having entered the IPM domain in 2016, DIL recognized the potential in integrated solutions and unconventional energy development early on. Its comprehensive IPM portfolio includes a wide range of services and equipment designed for operational synergy and cost efficiency.
Services Offered on Chartered Hire Basis include:
- Workover, Drilling, and Coring Rig Services
- Liner Hanger, Completion, and Workover Services
- Gas and Air Compressor Services
- Mud Engineering and Mud Logging Services
- Well Testing, Cementing, and Hydro-Fracturing Services
- Coil Tubing and Diesel Pumping Units
- Gas Pipeline Laying and Equipment Transportation
- Crane and Maintenance Services
- Installation of Sucker Rod Pumps
- Drilling Water Supply, Accommodation, and Canteen Services
- Fuel, Crude, and Diesel Tanker Supply
- Separator and Steaming Unit Operations
Equipment Available on Rental Basis includes:
- Drilling, Coring, and Workover Rigs with Accessories
- Solid Control and Mud Handling Equipment
- Well Control Equipment including BOPs, Accumulators, and Manifolds
- Wellhead and Christmas Trees
- Drilling Spools, Drill Strings, and Downhole Tools
- Tubulars, Fishing Tools, and Completion Equipment
- Hydraulic Systems and Cementing Units
- Mud Logging Units, Steaming Units, and Power Generators
- Portable Cabins, Bunk Houses, and Firefighting Equipment
Through this integrated service framework, clients gain the advantage of focusing on core business operations without incurring the capital costs of equipment ownership or maintenance. Deep Industries’ proven expertise, disciplined safety culture, and commitment to quality have enabled it to successfully deliver large and complex projects on time and to global standards.
Midstream Services: Air and Gas Compression Services
Deep Industries Limited holds the distinction of being the first company in India to provide high-pressure natural gas compressors on a charter-hire basis, and today commands more than 95% market share in the private sector.
As India’s largest private compression service provider, DIL offers flexible and customized compressor packages designed to meet a broad spectrum of applications with minimal modifications. Its operations adhere to the highest international standards, ensuring safety, reliability, and uninterrupted performance.
The company is recognized as one of the largest BOO, BOOT, and BOOM (Build-Own-Operate / Build-Own-Operate-Transfer / Build-Own-Operate-Maintain) compression service providers in the country.
Key Highlights:
- Owns a fleet exceeding 100 Natural Gas Compressors, ranging from 200 HP to 1680 HP, aggregating over 100,000 HP capacity.
- Packages comply with global standards:
- API 11P and ISO 13631 for Natural Gas Reciprocating Compressors
- NEC Class 1, Division 2 (IEC Zone 2 equivalent) for safety compliance
- ASME Sec VIII, Div I for pressure vessels
- Maintains an extensive stock of spare parts across locations to prevent downtime.
- Employs highly skilled engineers, supervisors, and operators dedicated to ensuring seamless, round-the-clock service delivery.
Through consistent performance and technological excellence, Deep Industries continues to be the partner of choice for India’s leading oil and gas operators in the compression services segment.
Midstream Services: Gas Dehydration, Conditioning & Processing
Deep Industries Limited is among the pioneers in India to offer Gas Dehydration Units (GDUs) on a charter hire basis. The company provides end-to-end gas dehydration, conditioning, and processing services to leading production facilities across the country.
Its dehydration process involves two sequential steps that lower the water and hydrocarbon dew points below 0°C, effectively removing moisture and heavier hydrocarbons from natural gas streams to meet PNGRB specifications.
The company has successfully commissioned gas dehydration units of capacities up to 10 LSCMD per unit in record time, ensuring minimal disruption to client operations. Currently, DIL owns and operates 11 Gas Dehydration Plants with a combined processing capacity of 140 MMSCFD.
Key Capabilities and Offerings:
- Comprehensive EPC (Engineering, Procurement & Construction) services, including:
- FEED and Detailed Engineering Design
- Installation and Commissioning of Gas Processing Facilities
- Gas Gathering and Collecting Stations
- Scrubbers, Nitrogen Rejection Systems, and Pipeline Networks (Overground & Underground)
- Modular process and treating solutions that enable faster monetization of natural gas and liquids.
- Scalable and transportable equipment designs for ease of deployment across multiple assets.
- Flexible business models including Turnkey, Bare Rental, O&M, and BOO/BOOT options.
- Dedicated operations and maintenance teams ensuring high uptime and reliability.
By maintaining standardized design principles and strict adherence to safety norms, Deep Industries ensures efficiency, flexibility, and value-driven performance in all gas processing and conditioning operations.
Charter Hire of Gas Processing Facility
Deep Industries Limited has commenced a unique project involving the Design, Supply, Installation, Commissioning, and Operation & Maintenance of a complete production system for receiving, processing, and delivering hydrocarbons at the custody transfer point from producing wells. This initiative marks a major milestone in the company’s continuous efforts to expand its range of value-added services in the oil and gas sector.
The project, known internally as Project Jaya, is distinctive in its structure and scope. Unlike conventional service contracts, the entire surface facility and produced-fluid processing network—from the wellhead to the transportation point—has been delivered by the company on a charter hire basis. This innovative business model eliminates the client’s upfront capital expenditure while ensuring operational efficiency and regulatory compliance.
The success of this project represents a pioneering step in India’s oilfield service industry and opens up new opportunities for Deep Industries Limited to provide integrated surface facility solutions on rental and long-term operational models.
Production Enhancement Contract
Deep Industries Limited has secured a landmark ₹1,402 crore Production Enhancement Contract (PEC) from Oil and Natural Gas Corporation (ONGC) for a tenure of 15 years. The project encompasses comprehensive services aimed at enhancing production from one of ONGC’s mature fields, reinforcing Deep’s position as a trusted partner in India’s upstream energy operations. Leveraging over three decades of experience, the company commenced ground-level operations in April 2025, with a significant portion of revenue expected to accrue during the first ten years of execution. The project is anticipated to deliver exceptionally strong EBITDA margins, underlining the company’s operational efficiency and technical expertise in long-term, performance-driven contracts.
Offshore Operations – Prabha DP2 Barge
In line with its strategy to strengthen offshore capabilities, Dolphin Offshore Enterprises (India) Limited (DOEIL) — a subsidiary of Deep Industries Limited — achieved a major milestone with the commencement of revenue generation from the Prabha-DP2, a dynamically positioned DP2 barge owned by its wholly owned subsidiary, Beluga International DMCC, Dubai. The vessel became operational in April 2025, marking a new phase in DOEIL’s offshore service expansion. Prabha-DP2, equipped with advanced features and high operational flexibility, is in strong global demand and is expected to generate robust daily rental revenues with an EBITDA margin of approximately 60%. In addition, the company signed a three-year lease agreement with Ballast Shipping S.A. DE C.V., Mexico, valued at US$ 32.85 million (~₹281 crore), reflecting DOEIL’s growing international footprint and contribution to the consolidated earnings of Deep Industries Group.
Clients
Capex
The management clarified that ongoing capital expenditure (capex) requirements related to the new contract are not material at present, averaging around ₹1 crore per month. The planned ₹160 crore capex for the project is expected to commence later in the current financial year and be fully completed by the next financial year, aligning with the company’s phased execution strategy.
Financials
For the year ended March 25
- For the year ended March 2025, the Company recorded Net Sales of ₹576 crore, representing a growth of approximately 35% compared to ₹427 crore in March 2024.
- The Company reported a Net Loss of ₹79 crore in March 2025, compared to a Net Profit of ₹125 crore in March 2024, reflecting a decline of about 163% on a year-on-year basis.
- EBITDA stood at ₹241 crore in March 2025, an increase of approximately 44% from ₹167 crore in March 2024.
- As of March 2025, the Company held investments worth ₹152 crore on its Balance Sheet.
- Trade receivables rose sharply from ₹277 crore in March 2024 to ₹589 crore in March 2025, nearly doubling year-on-year. Management clarified that this increase was primarily due to receivables acquired through subsidiary acquisitions, which have not been written off yet, with the expectation of partial recovery in the forthcoming periods.
The Company has stated that deliberate efforts will be made to realize these receivables; however, should recovery not materialize, the amounts will be written off in future financial periods. Investors are advised to note that such potential write-offs may impact both the Profit & Loss Account and Balance Sheet figures in subsequent years, which could also influence the Company’s stock valuation. For more details check Receivables and Recovery Outlook section in this article.
For Q1FY26
- For the quarter ended June 2025 (Q1 FY26), company reported revenue of ₹199.5 crore, marking a robust year-on-year growth of 61.6%.
- The company’s continued focus on cost optimization and operational efficiency resulted in a 54.7% increase in EBITDA, which stood at ₹95 crore for the quarter, with an EBITDA margin of 44.6%.
- The company has consistently maintained margins in the 40–45% range, ensuring healthy cash flows to support its long-term growth strategy.
- Net profit for the quarter was recorded at ₹61.7 crore, reflecting a year-on-year growth of 59.3%.
- As of the quarter-end, the order book stood at ₹3,051 crore, an impressive increase of 152.15% over the previous year, underlining the company’s strong project pipeline and market positioning.
Management’s comments
The management expressed confidence in achieving and sustaining over 30% year-on-year growth for the next two to three years, driven by timely execution of the company’s strong order book and continued operational discipline.
With regard to Kandla Energy, management clarified that the ₹208 crore write-off recorded in March related primarily to inventory rather than receivables. Efforts to recover legacy receivables are ongoing, and management remains optimistic about realizing a significant portion, which is expected to support and improve overall margins going forward.
Management further stated that EBITDA margins are projected to improve as the contribution from Dolphin Offshore increases within the consolidated revenue mix. The commencement of operations at Kandla Energy is also expected to further enhance overall operating margins.
Specifically, for Dolphin Offshore, management indicated that the business is expected to generate EBITDA margins in the range of 60–65%, supported by its non-opex contract structure, ensuring strong profitability on an estimated ₹100 crore revenue for FY26.
Order Inflow and Production Enhancement Update
The management indicated that the current bidding pipeline stands at approximately ₹700 crore, with strong conversion prospects expected in the coming quarters. Additional tenders are also being pursued, though providing a specific annual inflow figure remains difficult at this stage.
Regarding the ONGC Production Enhancement Contract, the company has already taken over the field and commenced baseline production. Applications and processes for boosting output are underway, and incremental revenue is expected to begin later in FY26.
The total capex envisaged for this project is around ₹160 crore, scheduled to commence later in FY26 and spill over into the next financial year, with an estimated ₹70–80 crore likely to be incurred during the current year.
Dolphin Offshore – Planned Asset Expansion
The management clarified that the proposed ₹350–400 crore capex for Dolphin Offshore includes the acquisition of both tugs and larger offshore vessels, such as Diving Support Vessels (DSVs) and Platform Supply Vessels (PSVs). While tugs typically generate daily revenues of USD 17,000–20,000, DSVs and PSVs command significantly higher day rates of around USD 50,000, offering substantial revenue potential.
Management emphasized that the final composition of assets and investments will depend on contract opportunities, ensuring capital deployment remains aligned with confirmed demand and attractive return profiles.
Receivables and Recovery Outlook
The management clarified that certain receivables have been intentionally retained in the books to maintain the company’s legal right to claim recovery, as their removal could restrict the ability to pursue legal action in future. These receivables primarily originate from the acquired entities — Kandla Energy and Dolphin Shipping — which were purchased at nominal acquisition costs of ₹2 crore and ₹7 crore, respectively. Effectively, the company incurred minimal cost in acquiring these receivables.
The outstanding receivables currently stand at approximately ₹363 crore, and management remains confident of recovering a substantial portion within the next two years. These dues involve over 200 operating companies, many of which are financially stable and active in business, thereby giving Deep Industries a reasonable probability of successful recovery. A review will be conducted after the two-year period, and any unrecovered portion will be considered for write-off based on the outcome of the collection process.
Management also confirmed that no additional write-offs are planned for FY26, reaffirming that the company’s financial position remains stable. The retained receivables were acquired at a very low cost through these acquisitions and are being monitored closely through continuous follow-up and recovery efforts.
It was further noted that, while deliberate and structured efforts are underway to realize these receivables, any potential non-recovery may result in a one-time loss in future periods.
Disclaimer: The Company has stated that deliberate efforts will be made to realize these receivables; however, should recovery not materialize, the amounts will be written off in future financial periods. Investors are advised that such potential write-offs may impact both the Profit & Loss Account and Balance Sheet figures in subsequent years, which could also influence the Company’s stock valuation. At this stage, Darkhorsestocks has not assessed or incorporated the potential financial impact of such write-offs into its analysis, as the timing and extent of any adjustments remain uncertain.
Additional Note
Although Deep Industries Limited has been presented as a fundamentally strong company with ambitious growth plans and optimistic management guidance, investors should remain mindful that the oil and gas services sector is inherently high-risk, where unforeseen external factors can cause significant disruptions beyond management’s control. Additionally, the company has a relatively small equity base, with a large portion held by promoters, which may limit liquidity and price movement in the stock. Therefore, even with strong fundamentals and operational performance, the stock may not always reflect the company’s financial progress proportionately, and investors are advised to consider these factors before taking any investment decisions.
Conclusion
Deep Industries Limited, a 34-year-old company engaged in providing integrated oil and gas field services, has built a strong presence across upstream and midstream segments through decades of operational excellence and strategic expansion. With a three-year sales CAGR of 21% and net profit CAGR of 44%, the company has demonstrated consistent growth and profitability. Backed by a robust order book, rising offshore contributions, and disciplined execution, the management remains confident of achieving over 30% annual growth over the next 2–3 years, supported by a projected 1–2% improvement in EBITDA margins, ensuring steady expansion.