Asian Energy

The company highlighted the impact of the West Asia conflict, creating geopolitical uncertainties and near-term volatility, but also reshaping the global energy investment cycle positively. India's quest for energy and mineral security is accelerating domestic exploration and production, with nearly $100 billion investment committed to the oil and gas sector by 2030. Asian Energy Services is transforming from a domestic energy services player to an integrated international energy platform, aiming to capitalize on these trends, especially with its post-merger organization and Kuiper acquisition.

For FY26, Asian Energy Services reported a 70% year-on-year growth in revenue from operations, reaching INR 791 crores, compared to INR 465 crores in FY25. EBITDA for the year stood at INR 99 crores, a 37% growth, with an EBITDA margin of 12.5%. Adjusted profit after tax for FY26 was INR 60.6 crores, up from INR 42.2 crores in FY25, resulting in an adjusted PAT margin of 7.7%. The company noted a one-time^📎 exceptional item^📎 of INR 9 crores related to Kuiper acquisition costs and a write-off.

In Q4 FY26, revenue from operations grew 57% to INR 338 crores compared to INR 215 crores in Q4 FY25. EBITDA for the quarter increased by 47% to INR 49 crores, with an EBITDA margin of 14.6%. Management acknowledged challenges and disruptions in Q4 due to the West Asia conflict and client-side delays, which delayed execution and revenue recognition. However, these impacts are considered timing-related, with deferred revenue expected to be recognized in FY27.

The Oil and Gas segment reported revenue of INR 256 crores and a profit of INR 42 crores in Q4 FY26, with full-year FY26 figures at INR 633 crores revenue and INR 102 crores profit. The Minerals segment contributed INR 82 crores in revenue and INR 18 crores in profit for Q4 FY26, and INR 158 crores revenue with INR 32 crores profit for the full FY26. The Minerals segment continued to be a key growth driver for the company.

The proposed merger with Oilmax Energy received SEBI approval, and the NCLT convened a shareholders' meeting for June 2026, with completion expected by September or October 2026. Post-merger, the entity will be capable of self-delivering across the value chain. Production is commencing from the Tiphuk field, and Amguri field production is expected to increase this year. Production from the Duarmara field is also anticipated to start this year, with ongoing testing and workover rig operations.

Kuiper's presence across countries and established relationships position it advantageously in a tight manpower market. While a small disruption occurred in Qatar in March due to geopolitical tensions, most operations remained unaffected and are returning to normal. Kuiper's strategy involves diversifying its portfolio beyond offshore drilling rigs into marine services, offshore construction, and cable link, and expanding geographically into markets like Africa (specifically Nigeria) and Southeast Asia, targeting $100 million revenue by FY29 with 11-12% EBITDA margins.

Asian Energy Services maintains a net-zero debt position with a strong balance sheet, further strengthened by INR 92 crores from warrants conversion. The company has sufficient room to raise working capital and additional debt, supported by nationalized and private banks. Capex plans for the next year are limited, primarily focusing on drilling additional wells in the Indrora and Mevad fields, with Asian's portion estimated at INR 50 crores out of an overall INR 100 crores for the block level. Service businesses do not require significant capex, relying on operating expenses.