Broker’s Call: Deep Industries (Buy)

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SENSEX 77,301.40

+ 383.55

NIFTY 23,960.60

+ 149.75

NIFTY 23,960.60

+ 149.75

CRUDEOIL 9,013.00

 -91.00

CRUDEOIL 9,013.00

 -91.00

GOLD 142,604.00

+ 3,152.00

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The company sustained a healthy revolving order-book of around ₹3,090 crore, providing strong medium-term revenue visibility, despite executing contracts worth ₹295 crore during Q2FY27

By Anjana C Shriram

Updated - November 04, 2026 at 05:45 PM.

Systematix Institutional Research

Target: ₹805

CMP: ₹648.9

Deep Industries reported a healthy operational performance in Q2FY27, with revenue growing 34 per cent year on year to ₹295 crore (inline with our estimate), supported by revenue contribution from new projects.

Gross profit increased 17 per cent to ₹144 crore; however, gross profit margin contracted 700 bps to 48.7 per cent, primarily due to higher material/maintenance costs.

EBITDA grew 16 per cent to ₹110 crore (down 6.5 per cent from our estimate), although EBITDA margin moderated 543 bps to 36 per cent, reflecting elevated operating expenditure and lower gross margins.

The company sustained a healthy revolving order-book of around ₹3,090 crore, providing strong medium-term revenue visibility, despite executing contracts worth ₹295 crore during Q2FY27.

The company secured order additions of ₹340 crore during the quarter, while its bidding pipeline remains healthy at ₹700-800 crore.

The management expects operating revenue to grow 30-35 per cent in FY27, followed by a similar growth trajectory in FY28, supported by the existing order-book and bidding pipeline.

The management has guided for PAT of ₹350-370 crore in FY27 and ₹470-500 crore in FY28. Supported by the government’s continued focus on energy security and favourable sector tailwinds, we remain constructive on the company’s long-term growth prospects.

Accordingly, we revise our PER multiple to 13x PER FY28E, while we revise our TP to ₹805 (earlier ₹675). Maintain BUY.

Published on November 4, 2026

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