Asian Energy

Asian Energy Services Limited reported H1 FY26 revenue from operations of INR217.4 crores, marking a 38% growth over H1 FY25, with an EBITDA of INR21.1 crores and a 9.7% margin. Profit after tax for H1 stood at INR1.7 crores. For Q2 FY26, revenue was INR102 crores, EBITDA INR9.1 crores (8.9% margin), and a negative PAT of INR4 crores, primarily due to a one-time^📎 acquisition expense for Kuiper Group and operational impacts from unseasonal monsoons.

During the quarter, AESL successfully completed the acquisition of Kuiper Group, significantly strengthening its global presence and expanding service capabilities across the Middle East and Southeast Asia. Kuiper's financials have been consolidated from September 1, 2025, and it currently operates at a monthly revenue run rate of approximately INR40 crores. Additionally, the company has filed for a merger by absorption of Oilmax Energy Private Limited, aiming to create a unified entity with enhanced growth prospects and synergies.

The company's order book remains strong and well-diversified, totaling over INR2,000 crores (excluding taxes and the Kuiper portfolio). Operations & Maintenance (O&M) is the largest contributor at 62.4%, followed by infrastructure and CHP at 33.2%, and seismic at 4.4%. Management expects approximately INR400-450 crores of this order book to be executed in FY26, with the majority of the balance completed in FY27, and long-term O&M contracts providing revenue visibility for 4-5 years.

AESL secured a prestigious coal handling plant contract from Mahanadi Coalfields Limited, valued at approximately INR459 crores, which is the largest CHP order ever awarded to the company and will be executed over 7 years. Additionally, an integrated services contract from Vedanta Limited, valued at around INR865 crores, has commenced execution and is expected to contribute to revenue in upcoming periods. The company anticipates 80% of the CHP project revenue to be booked within the first 1.5-2 years.

The Duarmara field, identified as AESL's largest gas and oilfield, is expected to commence production later in FY26, with the pipeline work already in progress. The company is highly optimistic about this field, projecting a peak production of approximately 6,200 barrels of oil equivalent by FY29-30. AESL's 50% share is expected to generate INR350-400 crores in top line annually, with high EBITDA margins of 70-75%.

The coal handling plant market presents a significant opportunity, with the coal ministry's website indicating a tentative size of approximately INR20,000 crores in projects planned over the next 5 years from Coal India alone. AESL is actively bidding on 2-3 projects and plans to expand its focus to other mineral segments requiring bulk commodity handling in the next 6-12 months, beyond just coal.

Asian Energy Services typically operates with a working capital cycle of 45-75 days, while Kuiper's services business has a 60-90 day cycle. The merger with Oilmax, which has a negative working capital due to its cash-and-carry oil sales, is expected to strengthen the consolidated working capital cycle. Regarding GST, the incremental 6% cost on E&P business will have some implication, but the combined entity expects to manage this effectively by internalizing most activities, making the residual impact negligible.