Order Book
₹580 Cr
+81% YoY
Order book grew from ₹321 Cr to ₹580 Cr, driven by the ₹300 Cr Hindustan Zinc order.
SOUTHWESTPINNACLEEXPLORA
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15 May 2026
South West Pinnacle Exploration Ltd — Q4 FY26
South West Pinnacle Exploration delivered its best-ever quarterly profitability in Q4 FY26, with revenue of ₹78 Cr (+5% YoY) and EBITDA of ₹20 Cr (+32% YoY), driving EBITDA margin expansion of 540 bps to 26.25%.
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2-Min Summary
South West Pinnacle Exploration delivered its best-ever quarterly profitability in Q4 FY26, with revenue of ₹78 Cr (+5% YoY) and EBITDA of ₹20 Cr (+32% YoY), driving EBITDA margin expansion of 540 bps to 26.25%. PAT grew 30% YoY to ₹13 Cr. The full-year revenue rose 35% to ₹243 Cr, with PAT doubling to ₹33 Cr. The standout event was securing the largest single order worth ₹300 Cr from Hindustan Zinc, boosting the order book to ₹580 Cr. Management guided for ~20% revenue growth in FY27 with disproportionate profit growth, citing strong demand across exploration domains, a shift to private clients (improving cash flows), and capacity additions (4 new rigs ordered). The coal block in Jharkhand is progressing toward mining plan approval, with Phase 1 capex of ~₹200 Cr largely non-fund based. Key risk: execution delays on the large Hindustan Zinc order or monsoon disruptions could impact quarterly linearity.
Key Numbers
Rig Fleet
40 rigs
+7-8 rigs YoY
Added 7-8 rigs in FY26; 4 more on order for delivery in 3-6 months.
Reliance Revenue Share
35%
flat YoY
Reliance contributed ~35% of revenue; expected to remain 35-40% in FY27.
Return on Equity
16%
+600 bps YoY
ROE improved from 10% to 16% in FY26, reflecting higher profitability.
Management Guidance
20% revenue growth in FY27
Management guided for ~20% year-on-year revenue growth in the short to medium term, with a disproportionate increase in profitability.
revenueEBITDA margin expansion expected
With fixed cost coverage, EBITDA margins are expected to improve further as revenue grows, though no specific target was given.
margins4 new rigs to be delivered in 3-6 months
Four additional drilling rigs have been ordered and are expected to be delivered within the next 3 to 6 months, expanding the fleet.
capexCoal block Phase 1 capex of ~₹200 Cr
The Jharkhand coal block will require ~₹200 Cr in Phase 1, mostly non-fund based (bank guarantees), with funding from internal accruals and bank facilities.
capexKey Risks
Execution risk on large Hindustan Zinc order
The ₹300 Cr order from Hindustan Zinc is the largest ever; any delay in mobilization or execution could impact revenue visibility.
medium · analyst_questionMonsoon disruption to operations
Historically, monsoon affects drilling operations; management claims current order book mitigates this, but weather remains a risk.
medium · management_commentaryHigh receivables and working capital
Receivables are elevated (implied ~6 months credit), though management cites retention money and improving private client mix.
medium · analyst_questionCoal block development delays
The Jharkhand coal block requires regulatory approvals (mining plan); any delay could push back revenue generation from this vertical.
low · data_observationNotable Quotes
FY2026 was a landmark year for the company wherein we achieved our highest ever annual performance. Further Q4 FY26 also marked our best ever quarterly performance in terms of profitability.
We expect to be on excellent growth trajectory and are confident of achieving around 20% growth year on year in short to medium term with sustainable increase in bottom line.
Exploration sector in all... there is a huge shortage of resources currently in the market. So the margins are great right now.