Asian Energy Services Limited — Q4 FY26 earnings call

Call held 20 May 2026

Management summary

Asian Energy Services Limited delivered strong FY26 performance with significant revenue and adjusted PAT growth, despite Q4 revenue recognition delays attributed to geopolitical factors and client issues. The company is progressing with the Oilmax Energy merger and is strategically positioned for growth in integrated energy services, supported by a healthy order book and a net-zero debt balance sheet. Management provided optimistic guidance for FY27 and beyond, focusing on operational execution and strategic integration.

Highlights

  • Revenue from operations for FY26 grew 70% year-on-year to INR 791 crores.

  • Adjusted profit after tax for FY26 stood at INR 60.6 crores, translating into an adjusted PAT margin of 7.7%.

  • Q4 FY26 revenue grew 57% to INR 338 crores, with EBITDA growing 47% to INR 49 crores, and an EBITDA margin of 14.6%.

  • The company maintains a robust, well-diversified order book of approximately INR 1,750 crores, providing strong revenue visibility.

  • SEBI approval received for the proposed merger with Oilmax Energy, with NCLT meeting scheduled for June 2026, targeting completion by September or October 2026.

  • Proposed a dividend of INR 1.25 per share for FY26, reflecting commitment to shareholder value.

Concerns

  • Q4 FY26 revenue recognition was delayed due to supply chain disruptions from the West Asia conflict and client-side delays.

  • A one-time exceptional item of INR 9 crores related to Kuiper acquisition costs and a write-off impacted FY26 PAT.

  • Oilmax PAT margins for FY26 are not comparable to FY25 due to ESOPs granted before the merger announcement.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹338 Cr
    YoY +57%
  • EBITDA
    ₹49 Cr
    YoY +47%
  • EBITDA Margin
    14.6%

FY26

  • Revenue
    ₹791 Cr
    YoY +70%
  • EBITDA
    ₹99 Cr
    YoY +37%
  • EBITDA Margin
    12.5%
  • Adjusted PAT
    ₹60.6 Cr
    YoY +43.6%
  • Adjusted PAT Margin
    7.7%

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
₹1,129 Cr Total
  • Oil and Gas (FY26) ₹633 Cr 56.1%
  • Oil and Gas (Q4 FY26) ₹256 Cr 22.7%
  • Minerals (FY26) ₹158 Cr 14.0%
  • Minerals (Q4 FY26) ₹82 Cr 7.3%

Capital allocation

high confidence
  • Capex ₹50 Cr
    • Drilling additional wells in Indrora and Mevad fields ₹50 Cr
    Regarding the capex commitment for FY '27, so there is no capex commitment we have for our services business or for international expansion. The only capex as in Asian what we are looking at currently is drilling more wells in our Indrora and Mevad field, where we have found good oil success. So there, we are evaluating to drill additional wells. So the overall commitment, what we are seeing in over the next 1 year on the overall block level is roughly around INR100 crores. And out of that, our portion will be roughly around INR50 crores.
  • Debt Net ₹0 Cr
    We continue to remain a net zero debt company with a strong balance sheet and the recent receipt of INR92 crores from warrants conversion has further strengthened our balance sheet.
  • Dividend ₹1.25/share (final)
    In recognition of the company's strategic developments and strong operational performance during FY '26, we are pleased to propose a dividend of INR1.25 per share, subject to shareholders' approval.
  • M&A Oilmax Energy Merger · Pending regulatory

    To build an integrated organization platform and integrated energy platform, transforming from a domestic energy services player to an integrated international energy platform.

    On the strategic front, we are pleased to share that the company has received approval from SEBI for the proposed merger with Oilmax Energy, and the NCLT convened shareholders' meeting is now scheduled for June 2026. We expect the completion of the merger process by September or October 2026.
  • Liquidity Liquidity disclosed Company has sufficient room to raise working capital debt and additional debt, supported by nationalized and private banks (including Citibank), to fuel growth.
    So, as you would appreciate, we continue to remain zero debt company and our debt-to-equity ratio is virtually nil. So, we have a sufficient room to raise working capital debt and additional debt also, which require us to fuel our growth. We have been supported by 2 nationalized bank and private sector bank also, including Citibank.

Guidance & targets

Revenue

  • Oilmax Revenue Revenue · FY29, FY30 · High confidence INR 800-900 crores
    Regarding the going forward Oilmax revenue, we have already guided that in FY '29, FY '30, we are looking for reaching an Oilmax revenue of between INR800 crores to INR900 crores, where the current existing producing assets and the assets which are coming into production in this year will start contributing to our revenue.

    — Kapil Garg

  • Asian Energy Standalone Top Line Growth Revenue · FY27 · High confidence 30-40%
    Yes. So as we told you, FY '26, we had a Kuiper only for the 7 months for the stand-alone basis for FY '27 we hope to grow between 30% to 40%.

    — Sumit Maheshwari

  • Kuiper Top Line Revenue · FY27 (full year basis) · High confidence $60-65 million
    And the Kuiper for the full year basis, we are looking at the top line of roughly around $60 million to $65 million. This is what we are guiding for the FY '27.

    — Sumit Maheshwari

  • Asian Energy Standalone CAGR Growth Revenue · beyond FY27 · High confidence 25-30%
    25% to 30% would be a pretty decent range, Sunny.

    — Kapil Garg

  • Kuiper Revenue Revenue · by FY29 · High confidence $100 million
    So, in the presentation, you have mentioned that you look to scale the business to about $100 million of revenue by FY '29.

    — Kapil Garg

Margin

  • Asian Energy Standalone EBITDA Margin Improvement Margin · FY27 · High confidence 100-200 bps
    On a stand-alone basis, our EBITDA margin for the last year FY '26 was roughly around 16%. And we hope to improve our EBITDA margins at least by 100 to 200 bps in FY '27.

    — Sumit Maheshwari

  • Kuiper EBITDA Margin Improvement Margin · FY27 · High confidence 100-200 bps
    On the Kuiper front, our EBITDA margins was 7% last year, we are hoping to increase our EBITDA margins by 100 to 200 bps.

    — Sumit Maheshwari

  • Consolidated EBITDA Margin Margin · FY27 · High confidence 12-13%
    On the consol level, I think our EBITDA margins will be roughly around 12% to 13%.

    — Sumit Maheshwari

  • Kuiper EBITDA Margin Margin · by FY29 · High confidence 11-12%
    Got it. And at about $100 million of top line, what kind of EBITDA margins can be achieved with operating leverage and efficiencies? So from current 7%-odd margins, what could be the target margins by FY '29? We are targeting 11% to 12%.

    — Kapil Garg

Production

  • Mevad Production Production · by FY29 · High confidence 1,000 BOPD
    And specifically, the 1,000 BOPD guidance we want to achieve in this year. And in the next coming years, we intend to take Indrora production further to 1,500 BOPD per day in the next 2, 3 years, depends on what type of results and success we get into the current guidance.

    — Sumit Maheshwari

  • Indrora Production Production · next 2-3 years · High confidence 1,500 BOPD

    — Sumit Maheshwari

What to watch in Q1 FY27

Duarmara Production Start Date

Next quarter (within a month of call)
Current Testing ongoing, oil flowed to surface, non-operator (Antelopus Selan)
Target Commercial sales start date

Why it matters

Critical for Oilmax growth objectives and revenue visibility, as it is a key asset for future production ramp-up.

I think within a month or so, we'll be able to give you much better prediction as the testing results come out. It's difficult for me to commit to a date to you today. So, we will follow up with more with our partner and both of us will come out with the tentative date.

Risks & concerns

  • Geopolitical uncertainties and West Asia conflict

    medium

    Rising geopolitical uncertainties around the Strait of Hormuz caused near-term volatility and supply chain disruptions, leading to Q4 revenue recognition delays.

    Management acknowledged

  • Q4 FY26 revenue recognition delays

    low

    Delays were timing-related, not a loss of revenue, and deferred revenue is expected to be recognized in FY27 as operating environment normalizes.

    Management downplayed

Q&A highlights

7 direct
Duarmara Production Delays and Status Partial
It appeared to be a little bit tighter. So Antelopus is doing a little bit more test as we speak today. And today morning also, there was some more oil flow in the well. The detailed testing is being carried out now with the workover rig, and we'll provide a further update to you, as we get information from Antelopus.

Analyst pressed on delays for a critical asset; management provided an update on ongoing testing but could not commit to a production start date, indicating uncertainty.

Asked by Vaibhav Badjatya

Coal Gasification Capabilities Direct
So on the gasification side, I mean, as you are aware, we do build process plants for oil and gas. So, we do understand the basic chemistry and the process plants. But if you ask for a specific, do we have the knowledge, we don't. So, we are in the evaluation stage right now, and we will look for a technology partner.

Clarified the company's current capabilities and strategic approach to a new, government-supported area (coal gasification), indicating a potential future growth avenue through partnerships.

Asked by Santosh

Geopolitical Impact on Kuiper Operations Direct
So, we did see some disruptions in March during the month only in Qatar. So Qatar, we are providing services offshore. So that was one geographical location we faced some challenge. But most of those clients have kind of remobilized now, and we are almost back to normal now.

Addressed concerns about geopolitical risks impacting the newly acquired Kuiper, confirming a temporary disruption but also a swift return to normalcy, reassuring investors about the asset's stability.

Asked by Santosh

Future Inorganic Growth Opportunities Direct
I mean, obviously, we remain open to inorganic acquisition opportunities. But specifically, are we chasing something right now? The answer is no. And as we keep on talking about the capital discipline, even the opportunities, if and when they come along, we will evaluate them very carefully before making the decision.

Management clarified its stance on M&A, indicating a disciplined approach and no immediate specific targets, which helps set expectations for future capital allocation.

Asked by Atul Dagga

Consolidated Capex Requirements for FY27/FY28 Direct
Regarding the capex commitment for FY '27, so there is no capex commitment we have for our services business or for international expansion. The only capex as in Asian what we are looking at currently is drilling more wells in our Indrora and Mevad field, where we have found good oil success. ... our portion will be roughly around INR50 crores.

Provided specific, limited capex guidance for the near term, primarily focused on existing oil fields, suggesting a period of consolidation rather than aggressive expansion-related capex.

Asked by Atul Dagga

Standalone Business Growth and Order Book Coverage Direct
So, the guidance which we have provided is more or less almost 90%, 95% of the current guidance what we are providing is coming from our existing order book and the contract where we are L1. So, we have not factored in any new contracts or new order book built up into our current year guidance.

Reassured investors that the FY27 standalone growth guidance is largely de-risked by the existing order book and L1 contracts, implying high visibility and less reliance on new wins for the immediate future.

Asked by Sunny Gosar

Kuiper Growth Drivers and Target Margins Direct
Right now, the major chunk of the top line comes from providing manpower through drilling rigs. We have already started to diversify the base, and we are in multiple discussions, and we have started seeing some initial success with large EPC contractors in Middle East and Southeast Asia. ... We are targeting 11% to 12%.

Management detailed the strategic diversification efforts for Kuiper (services, geography, client base) to achieve its $100 million revenue target and provided a clear EBITDA margin target of 11-12% by FY29.

Asked by Sunny Gosar

Mevad Field Crude Pricing Mechanism Direct
So our crude from, we have a contract with Indian Oil Corporation, and the formula is linked to Brent, a monthly average of dated Brent. So as per the formula, we supply to IOC and we get paid.

Clarified the pricing mechanism for crude produced from Mevad, linking it to Brent prices, which is crucial for understanding revenue realization and profitability in a volatile crude price environment.

Asked by Santosh

3 min read 7 chapters

Detailed narrative

Macro Environment and Strategic Positioning

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.

FY26 Financial Performance Overview

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.

Q4 FY26 Performance and Revenue Delays

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.

Segmental Performance

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.

Oilmax Merger and Asset Development

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 Performance and Geopolitical Impact

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.

Capital Allocation and Balance Sheet Strength

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.

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