Asian Energy Services Limited — Q2 FY26 earnings call

Call held 17 Nov 2025

Management summary

Asian Energy Services Limited reported a transformative H1 FY26, marked by the acquisition of Kuiper Group and significant new order wins totaling over INR2,000 crores. While H1 revenue grew 38% to INR217.4 crores, Q2 profitability was impacted by a negative PAT of INR4 crores due to one-time acquisition expenses and lower EBITDA margins from unseasonal monsoons. The company remains confident in achieving its full-year guidance, anticipating strong H2 FY26 performance as integration progresses and project execution accelerates.

Highlights

  • H1 FY26 revenue from operations stood at INR217.4 crores, marking a growth of 38% over H1 FY25.

  • Order book remains robust at more than INR2,000 crores, excluding taxes and the Kuiper portfolio.

  • Secured largest CHP order ever awarded to AESL for INR459 crores from Mahanadi Coalfields Limited.

  • Integrated services contract from Vedanta Limited valued at around INR865 crores secured.

  • Kuiper Group acquisition successfully completed, expanding global presence and capabilities.

Concerns

  • Q2 FY26 reported a negative PAT of INR4 crores due to a one-time acquisition expense for the Kuiper Group.

  • Q2 FY26 EBITDA margin declined to 8.9% due to lower business activity and prolonged unseasonal monsoon conditions.

Key financials

2 periods

Q2 FY26

  • Revenue
    ₹102 Cr
  • EBITDA
    ₹9.1 Cr
  • EBITDA Margin
    8.9%
  • PAT
    ₹-4 Cr

H1

  • FY26 Revenue
    ₹217.4 Cr
    YoY +38%
  • FY26 EBITDA
    ₹21.1 Cr
  • FY26 EBITDA Margin
    9.7%
  • FY26 PAT
    ₹1.7 Cr

What they filed

Q1 FY27: revenue up 135.7%, net profit up 116.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue98 92 215 115 102 +4%235 +155%338 +57%271 +136%
EBITDA15 13 31 11 8 −47%28 +115%48 +55%21 +91%
Net profit9 8 23 6 -4 −144%18 +125%33 +43%13 +117%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹319.4 Cr Total
  • Oil and Gas (H1 FY26) ₹167.2 Cr 52.3%
  • Oil and Gas (Q2 FY26) ₹74.9 Cr 23.5%
  • Mineral and Other Energy Services (H1 FY26) ₹50.2 Cr 15.7%
  • Mineral and Other Energy Services (Q2 FY26) ₹27.1 Cr 8.5%

Order book

high confidence

Total value

₹2,000 Cr

as of 2025-09-30 quantified

Execution

roughly around INR400 crores to INR450 crores of order book will get executed in FY '26. And majority part of the balance order book will get completed in FY '27. ... roughly around 60% to 70% order book will get executed in this year and the next financial year. And the balance order book will be a long-term order book, which relates to execution for next couple of years as our O&M contracts are 4 to 5 years duration.

Composition

Mix 3 contract types
  • O&M 62.4%
  • Infrastructure and CHP 33.2%
  • Seismic 4.4%

Share of order book by contract type

The order book is robust and well diversified, with a significant portion expected to be executed in the current and next financial year, and long-term O&M contracts providing further visibility.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • AGCL BOOT project ₹60 Cr
    • Indrora field well drilling ₹15 Cr
    So, the only capex which we have planned this year is one, the AGCL contract, which we are doing for the BOOT project... we have already incurred some roughly around INR20 crores of capex on that project in first half of the year and roughly around INR40 crores of capex to be incurred in second half of the year to complete that project. ... And for the Indrora field in Gujarat, once we start the well drilling program, there will be some capex of roughly around INR15 crores to INR20 crores over a period of next 3, 4 months to drill the new wells.
  • M&A Kuiper Group Acquisition · Closed

    Strengthening global presence, broadening integrated service capabilities, expanding footprint across Middle East and Southeast Asia.

    Consolidated from September 1, 2025; Q2 PAT negatively impacted by one-time acquisition expense.

    AESL successfully completed the acquisition of Kuiper Group, thereby marking a significant milestone in strengthening our global presence. This acquisition broadens our integrated service capabilities and expands our footprint across the Middle East and Southeast Asia. Kuiper Financials have been consolidated from 1st of September 2025 and accordingly, this quarter reflects one month of their performance. The business is currently operating at a monthly revenue run rate of approximately INR40 crores with further improvement expected as integration progresses.
  • M&A Oilmax Energy Private Limited Merger · Pending regulatory

    Creating a unified entity with a streamlined structure, stronger synergies and enhanced long-term growth prospects.

    Expected to improve consolidated working capital cycle due to Oilmax's negative working capital business model.

    as part of our broader strategic agenda, we have filed for merger by absorption of Oilmax Energy Private Limited into Asian Energy Services Limited. This proposed merger is aimed at creating a unified entity with a streamlined structure, stronger synergies and enhanced long-term growth prospects.

Guidance & targets

Revenue

  • Full Year FY26 Stand-alone Revenue Revenue · FY26 · High confidence INR650 crores
    we remain confident of achieving our guidance, which we have provided earlier.

    — Kapil Garg

  • Kuiper Monthly Revenue Run Rate Revenue · ongoing · High confidence approximately INR40 crores
    The business is currently operating at a monthly revenue run rate of approximately INR40 crores with further improvement expected as integration progresses.

    — Kapil Garg

  • Kuiper Consolidated Revenue H2 FY26 Revenue · H2 FY26 · High confidence roughly INR250 crores
    running on this particular run rate of INR40 crores to INR45 crores revenue per month in the next 6 months, roughly around INR250 crores of revenue, we are expecting to be booked in the consolidated books of Asian Energy.

    — Sumit Maheshwari

  • Duarmara Annual Top Line (AESL Share) Revenue · per year · High confidence INR350-400 crores
    it should start doing about INR350 crores to INR400 crores per year of top line.

    — Kapil Garg

Order Book Execution

  • Order Book Execution FY26 Order Book Execution · FY26 · High confidence INR400-450 crores
    roughly around INR400 crores to INR450 crores of order book will get executed in FY '26.

    — Sumit Maheshwari

  • Order Book Execution FY27 Order Book Execution · FY27 · High confidence Majority of balance order book
    And majority part of the balance order book will get completed in FY '27.

    — Sumit Maheshwari

Revenue Growth

  • Kuiper Revenue Growth FY27 Revenue Growth · FY27 · Medium confidence significantly grow
    And for the next year, once our integration process and our further business expansion activities comes into the play, for the FY '27, we are expecting Kuiper revenue to grow significantly from the current run rate of INR40 crores to INR45 crores per month.

    — Sumit Maheshwari

Production

  • Duarmara Peak Production Production · FY29-30 · High confidence 6,200 barrels of oil equivalent
    The peak production will be about 6,200 barrels of oil equivalent, as mentioned in the same slide, and the peak production will be achieved in financial year '29-'30.

    — Kapil Garg

Profitability

  • Duarmara EBITDA Margin Profitability · ongoing · High confidence 70-75%
    And in oilfields, the EBITDA margins are quite high, about 70%, 75%.

    — Kapil Garg

  • Kuiper EBITDA Margin Profitability · ongoing · High confidence 7%
    So, it's roughly around 7% EBITDA business.

    — Sumit Maheshwari

  • Kuiper Net Profit Contribution Profitability · ongoing · High confidence 6%
    So, the net profit contribution is roughly around 6% because Kuiper operates into jurisdiction where taxation is pretty low.

    — Sumit Maheshwari

Market Opportunity

  • Coal Handling Plant Opportunity (Coal India) Market Opportunity · next 5 years · High confidence INR20,000 crores
    Publicly available data for the next 5 years, the tentative size of the opportunity is about INR20,000 crores and multiple projects planned.

    — Kapil Garg

What to watch in Q3 FY26

Kuiper Integration Progress and Profitability

coming quarters
Current Integrations of teams, processes and systems is already underway
Target Improved profitability and operational efficiencies from Kuiper

Why it matters

Successful integration is key to realizing synergies and improving profitability from the significant acquisition.

Integrations of teams, processes and systems is already underway, and we remain confident that these initiatives will drive operational efficiencies and support improved profitability in the coming quarters.

Risks & concerns

  • Unseasonal Monsoon Impact on Operations

    medium

    Prolonged and unseasonal monsoon conditions in Q2 FY26 delayed field operations and impacted execution schedules, leading to lower business activity and reduced EBITDA margin.

    Management acknowledged

  • One-time Acquisition Expense for Kuiper Group

    low

    A one-time acquisition expense for the Kuiper Group, as per accounting standards, resulted in a negative PAT of INR4 crores in Q2 FY26, but is non-recurring.

    Management acknowledged

Q&A highlights

7 direct, 1 evasive
Anirit Ventures future plans post-merger Evasive
Anirit Venture is a subsidiary of Oilmax. It has, as of now, nothing to do with Asian Energy. And once the merger of Oilmax and Asian has been completed and we move forward, then whatever is required in terms of the Anirit Ventures, we will inform.

Management deferred discussion on a subsidiary's future, indicating it's not a current priority for Asian Energy directly until the Oilmax merger is complete.

Asked by Lakshay Chhabra

Achievement of FY26 revenue guidance of INR650 crores Direct
we remain confident of achieving our guidance, which we have provided earlier. This quarter, as I think Sumit explained, was affected by the prolonged monsoon, but all our projects are progressing well now. And with the new orders of the Vedanta and the Mahanadi Coalfields we talked about earlier, the execution has started, and we remain very confident of achieving our guidance we have provided earlier.

Management reaffirmed confidence in achieving full-year guidance despite Q2 challenges, citing new project contributions and improving execution.

Asked by Charvin

Working capital days and impact of Oilmax merger Direct
Oilmax is a negative working capital business because we sell oil on cash and carry basis. And for the gas, we have a billing cycle. And when we combine both the businesses together, our overall working capital cycle will further strengthen because the negative E&P working capital will help us in bringing out the overall debtors' day to a manageable level.

Provided specific insights into working capital dynamics and the positive impact of Oilmax's business model on the combined entity's cash flow.

Asked by Balasubramanian

DNPL capacity expansion capex and funding Direct
The DNPL pipeline is actually owned by Assam Gas Company Limited, which is a transporter and marketing of gas. So as Asian, we only provide gas to Assam Gas Company to transport and sell further. We have nothing to do with the pipeline capacity augmentation or the capex related to it.

Clarified the scope of AESL's involvement in the DNPL project, distinguishing its role as a gas provider from pipeline infrastructure.

Asked by Balasubramanian

One-time impact of Kuiper acquisition on Q3 financials Direct
No. So, the onetime impact what we had in Q2 is on account of the Kuiper acquisition... there won't be any impact in subsequent quarters for that.

Reassured investors that the Q2 negative PAT was a one-off event and not indicative of ongoing integration costs affecting future quarters.

Asked by Balasubramanian

Value proposition and pricing model of the Vedanta contract Direct
It actually will result in both cost savings and operational efficiency increase of Vedanta... The capital we incur on the project is reimbursed by Vedanta... operating cost is dollar per barrel for a baseline and the incremental production. So, in terms of output risk is very minimal.

Provided details on the strategic nature and financial structure of the significant Vedanta contract, highlighting its low output risk for AESL.

Asked by Sunny Gosar

Overall opportunity size and competitors in the coal handling plant segment Direct
Publicly available data for the next 5 years, the tentative size of the opportunity is about INR20,000 crores... there are some players, for example, Samanta -- there is a company called Samanta, who's there. And Madhucon project comes into 1 or 2 places.

Quantified a significant growth opportunity and identified key players in a new business segment for AESL.

Asked by Sunny Gosar

Update on Oilfield assets (Asian and Oilmax) Direct
Out of these 2 oilfields are under production... The other 2 oilfields, which are expected to come in production this year, they also continue to remain on track... all the fields, which Asian Energy has and the Oilmax Energy has continue to remain on the schedule and on the track, barring 1 month delay due to extended monsoons.

Provided a comprehensive update on the progress and status of the company's oilfield assets, including those from Oilmax, indicating operational readiness and minimal delays.

Asked by Nikunj Bhanushali

3 min read 7 chapters

Detailed narrative

Q2 & H1 FY26 Financial Performance Overview

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.

Strategic Acquisitions and Mergers

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.

Robust and Diversified Order Book

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.

Key Project Wins and Execution

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.

Duarmara Field Development and Outlook

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%.

Coal Handling Plant Market Opportunity

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.

Working Capital and GST Impact

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.

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