South West Pinnacle Exploration Limited — Q1 FY27 earnings call

Call held 22 Jul 2026

Management summary

South West Pinnacle Exploration Limited reported a strong Q1 FY27, with significant year-on-year growth across all key financial metrics, including a 54% increase in revenue to ₹62 crores and a 289% surge in Net Profit After Tax to ₹9.3 crores. The company's order book reached an all-time high of ₹761 crores, providing robust revenue visibility. Strategic progress was made on the Jharkhand coal block and international Oman projects, despite the inherent cyclicality of the mining and exploration sector.

Highlights

  • Operating revenue for Q1 FY27 was ₹62 crores, representing a 54% increase year-on-year.

  • EBITDA stood at ₹15 crores, an increase of 157% year-on-year, with an EBITDA margin of 24.15%.

  • Net Profit After Tax was ₹9.3 crores, a remarkable 289% increase compared to ₹2.5 crores in Q1 FY26.

  • Total order book reached an all-time high of ₹761 crores, providing strong revenue visibility for coming quarters.

  • Secured an extension of the coal-backed methane contract from Reliance Industries Ltd., valued at over ₹166 crores.

Concerns

  • The business is cyclical, with Q1 typically subdued due to monsoon, which could impact short-term performance.

  • Funding for large projects like Jharkhand Coal Block (₹200 crores) and Oman mining project remains a significant capital allocation item, though management has a plan.

Key financials

  1. Operating Revenue ₹62 Cr +54%YoY
  2. EBITDA ₹15 Cr +157%YoY
  3. EBITDA Margin 24.1%
  4. Net Profit After Tax ₹9.3 Cr +289%YoY

What they filed

Q1 FY27: revenue up 54.0%, net profit up 267.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue27 48 74 40 62 +128%63 +31%78 +5%62 +54%
EBITDA3 9 16 6 15 +321%18 +99%20 +25%15 +152%
Net profit0 3 9 2 8 +2352%10 +181%11 +24%8 +267%
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.

Order book

high confidence

Total value

₹761 Cr

as of 2026-06-30 quantified

Execution

Varied, some contracts for 4 years, some 2 years, some 6 months. Good visibility of three to five years.

Composition

Mix 2 contract types
  • Hindustan Zinc ₹307 Cr 64.9%
  • Reliance CBM Extension ₹166 Cr 35.1%

Share of order book by contract type, derived from disclosed amounts

The order book is strong and diverse, with good visibility for the next 3-5 years, driven by both private sector clients and new opportunities.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Additional drilling rigs and other equipment
    To support our growing business requirements, we have placed orders for additional drilling rigs and other equipment, further strengthening our execution capabilities.
  • Debt Net ₹15 Cr
    Yes, it is around INR 15 crores at the moment with a very good debt-equity of less than 0.39.
  • M&A Alara Resources Ltd. Joint venture · Integrated · Consideration ₹[object Object] (cash)

    Strategic decision to participate in direct equity due to Alara being a partner in Oman JVs.

    South West Pinnacle directly holds about 1.25% in Alara in Australia. The Oman JV profit was around INR 3.5-4 crores in the last quarter, with SWP's share being 35%.

    In addition, we are participating in the ongoing right issue of Alara Resources Ltd., Australia, reaffirming our long-term commitment to our international mining business. ... See, in the 1st Phase, we invested about 500,000 AUD. ... So, currently South West Pinnacle directly holds about 1.25% in Alara in Australia. ... And in the last quarter itself, the total profit from this joint venture was around INR 3.5 crores to INR 4 crores. In which our share was 35%.

Guidance & targets

Revenue

  • Revenue CAGR Revenue · medium term · Medium confidence around 20%
    Okay. And we have delivered a strong Q1 with over 50% revenue growth. And we are guiding up around 20% CAGR of revenue over the medium term.

    — Vikas Jain

Profitability

  • EBITDA Margin Profitability · FY27 · Medium confidence 24%
    So, for FY27, do we have an upward guidance along with sustaining these margins at 24%?

    — Vikas Jain

  • Oman JV Mining Services Profit Margin Profitability · ongoing · High confidence 5% to 7%
    Our net margin in that business should be around 5% to 7% from the mining services.

    — Vikas Jain

Project Timeline

  • Jharkhand Coal Block Production Start Project Timeline · FY29 · High confidence Financial Year 2028-2029
    Subject to the necessary regulatory approvals, we will commence mine development activities including preparation of the mining plan with the objective of commencing coal production by the financial year 2028-2029.

    — Vikas Jain

  • Oman Mining Project Revenue Start Project Timeline · 2030 · Medium confidence around 2030
    And the Oman project, we should be expecting around 2030.

    — Vikas Jain

Revenue Contribution

  • Reliance Contract Contribution to FY27 Revenue Revenue Contribution · FY27 · High confidence 35% to 40%
    Yes, it should be on the same line, (+/-5%).

    — Vikas Jain

Coal Production

  • Coal Production Growth by 2030 Coal Production · by 2030 · Medium confidence 30% to 40%
    By 2030, we are expecting a further growth of 30% to 40% coming from only coal.

    — Vikas Jain

What to watch in Q2 FY27

Jharkhand Coal Block Geological Report Submission

next quarter
Current Under preparation
Target Submission to MOC

Why it matters

This is a critical step for regulatory approval and progression towards mine development and production.

We have successfully completed the exploration activities, and the definite geological report is currently under preparation for early submission.

Risks & concerns

  • Business Cyclicality and Seasonality

    medium

    Mining and exploration business is cyclical, with Q1 typically subdued due to monsoon, impacting short-term revenue.

    Management acknowledged

  • Funding for Large Projects

    medium

    The Jharkhand Coal Block (₹200 crores CAPEX) and Oman mining project require substantial investment, which an analyst noted as heavy for the balance sheet.

    Analyst acknowledged

  • Geopolitical Tensions in Oman

    low

    Analyst inquired about the impact of Middle East tensions on Oman operations, but management stated Oman is in a 'pretty safe zone' and operations are unaffected.

    Analyst downplayed

Q&A highlights

5 direct
Order Book Composition Partial
Basically, all the verticals, I would say, they are ranging from 15% to 25% to 30%. There is co-billing of exploration going on now. There is one order which is a high-value order there. There CBM again relies on a high-value order. And the rest of it like seismic is there. Then there is aquifer mapping. So, I would say that everything is ranging from 15% to 25%.

Analyst sought a specific percentage breakdown of the order book by segment (oil & gas vs non-oil & gas), but management provided a general range across all verticals, indicating dynamic allocation.

Asked by Raman KV

Oman JV Revenue Contribution and Profit Direct
Yes, it is just added in the profit & loss. We don't add line-by-line revenue because we own 35%. But yes, as you said, it's a USD125 million 10-year contract. It is running well right now. And in the last quarter itself, the total profit from this joint venture was around INR 3.5 crores to INR 4 crores. In which our share was 35%.

Clarified how the USD 125 million Oman copper mining contract impacts financials (profit share, not line-by-line revenue) and provided specific profit figures for the last quarter.

Asked by Raman KV

Jharkhand Coal Block CAPEX Funding Direct
most of the money from the 1st Phase shall be either funded through internal accruals, through the profits which we have been generating and which we shall be generating in future as well, through some debt from banks and also through some off-take agreements from local domestic buyers.

Addressed how the significant ₹200 crores CAPEX for the Jharkhand coal block will be financed, outlining a diversified funding strategy.

Asked by Smit Gala

Q1 vs Q4 Performance and Cyclicality Direct
Generally, Q1 is subdued Saket Ji because the monsoon onset continues. And most of the clients want to complete the work by the end of the financial year. So, with the balance work that is done on the side, the client wants us to complete it by 31st March. So, generally, in the second half, the weather is clear. And the client also wants us to complete the work in the second half. So, Q1 you will see generally subdued as compared to Q4.

Explained the seasonal nature of the business, clarifying why Q1 revenue might be lower than Q4 and setting expectations for H2 performance.

Asked by Saket Kapoor

Competition and Margin Sustainability Direct
The margin should be maintained because the entry barriers are quite high in this kind of a business. The CAPEX cost is very high, and it is difficult for a new entrant to come and showcase their capability.

Management provided a rationale for maintaining margins despite competition, citing high entry barriers and CAPEX costs in the sector.

Asked by Sandeep

Jharkhand Coal Block and Oman Project Investment Concerns Direct
I do understand. And before taking any decision, we have done our own evaluation. Before taking these decisions, we have done our internal evaluation. So, we are hopeful of achieving that goal.

Analyst raised concerns about the heavy investment required for the Jharkhand and Oman projects relative to the company's balance sheet, to which management affirmed internal evaluation and confidence.

Asked by Sandeep

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in Q1 FY27

South West Pinnacle Exploration Limited delivered a robust performance in Q1 FY27, with operating revenue reaching ₹62 crores, marking a 54% year-on-year increase. EBITDA grew by 157% to ₹15 crores, achieving a margin of 24.15%. The Net Profit After Tax saw a significant jump of 289% year-on-year, totaling ₹9.3 crores, reflecting strong execution and operational discipline.

Record Order Book and Revenue Visibility

The company's total order book reached an all-time high of ₹761 crores, providing substantial revenue visibility for the next three to five years. This includes a new order valued at ₹307 crores from Hindustan Zinc and an extension of the coal-backed methane contract from Reliance Industries Ltd. worth over ₹166 crores. Approximately 77% of the order book comprises private sector clients, indicating a healthy mix and improved cash flow.

Jharkhand Coal Block Progress and Future Plans

Significant progress was made on the Jharkhand coal block, with exploration activities completed and the definite geological report under preparation. The company aims to commence mine development activities, including the mining plan, with the objective of starting coal production by FY2028-2029. The initial CAPEX for Phase-I is estimated at ₹200 crores, to be funded through internal accruals, debt, and off-take agreements, with a revenue-sharing agreement of 24.25% with the government.

International Expansion in Oman

In Oman, the company's joint ventures continue to perform well. The first JV with Alara Resources Ltd. for mining and drilling services has started generating revenue, contributing ₹3.5-4 crores in profit last quarter, with SWP's 35% share. The second JV, an exploration block, has completed its airborne survey, with the geological report currently under preparation. The company also participated in Alara Resources' rights issue, investing 500,000 AUD in the first phase, holding 1.25% directly.

Operational Highlights and Pipeline

The company operates a fleet of 43 advanced drilling rigs and is currently executing 20 ongoing projects across India. It was empaneled by Oil India Limited for 2D and 3D seismic data acquisition services, opening new opportunities. The exploration phase is expected to remain strong for the next three to five years, driven by new tenders and opportunities in rare earths, critical minerals, and other sectors. Resource utilization was over 100% during the quarter, with some work outsourced.

Debt Management and Credit Rating

The company's net debt stands at ₹15 crores, with a healthy debt-equity ratio of less than 0.39. CRISIL recently upgraded the company's credit rating from BBB to BBB+, reflecting improved financial health and management. Management aims to fund future projects primarily through internal accruals, bank debt, and off-take agreements, with a long-term goal of becoming a debt-free company.

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