South West Pinn.

South West Pinnacle Exploration Ltd. achieved a landmark FY26, reporting its highest-ever annual performance. Operating revenue grew by 35% year-on-year to INR 243 crores, while Net Profit After Tax surged by 101% to INR 33 crores, resulting in a PAT margin of 13.58%. The fourth quarter of FY26 also marked the best quarterly profitability, with operating revenue at INR 78 crores (up 5% YoY) and EBITDA at INR 20 crores (up 32% YoY), yielding an EBITDA margin of 26.25%.

The company secured its largest single order to date, valued at over INR 300 crores, from Hindustan Zinc Limited, with an execution timeline of 4 years. The total order book stands at INR 580 crores, with contracts ranging from 3 months to 4 years. Management highlighted that over two-thirds of the current orders are from private sector clients, which contributes to stronger cash flows and improved working capital efficiency.

To support its growth, the company significantly increased its fixed asset base from INR 61 crores to INR 90 crores in the last financial year, driven by the addition of multiple rigs and the acquisition of a new warehouse in central India. Four new rigs are currently on order, expected to be delivered within the next 3-6 months, further enhancing drilling capabilities. The CAPEX for the first phase of the coal block development is estimated at INR 200 crores, primarily funded through internal accruals and non-fund based guarantees.

Management expressed confidence in achieving approximately 20% year-on-year revenue growth in the short to medium term, with a substantial increase in the bottom line. The CBM segment is expected to deliver similar or better results this financial year, with its revenue contribution projected to increase from 35% to 35-40% with the deployment of a third rig by September-October. The aquifer mapping segment, characterized by good margins, also anticipates fresh tenders, driven by government impetus on water resource management.

The company's overseas operations in Oman are progressing well through two joint ventures. The first JV involves an 11-year mining services contract with 4 rigs booked for the next two years. The second JV is exploring a 1,400 square kilometer mineral block containing silver, gold, copper, basalt, and chromite. A strategic investment in an Australian-listed company, which is also a JV partner in Oman, aims to further strengthen international relationships and growth.

In FY26, the company demonstrated improved capital efficiency, with Return on Equity (ROE) increasing from 10% to 16% and Return on Capital Employed (ROCE) rising from 16% to 23%. Management noted that the exploration sector is experiencing a 'super cycle' driven by geopolitical uncertainties and a global race for critical minerals, leading to strong demand and favorable pricing for services. The government's aggressive push for natural resource discovery in India further supports this positive outlook.