South West Pinnacle Exploration Ltd. Reports Stellar Earnings for Q1FY27, PAT Grows 287% YoY
South West Pinnacle Exploration Limited (SWPEL) (BSE: 543986, NSE: SOUTHWEST), an Integrated Service Provider providing end-to-end Drilling & exploration of Natural resources announced its Financial Results for the Q1FY27.
For the first quarter, the Company reported a strong financial and operational performance. Consolidated revenue grew by 53% year-on-year. EBITDA margin improved from 14% to 24%, with EBITDA increasing by more than two-and-a-half times in absolute terms. Profit Before Tax (PBT) margin expanded from 8% to 19%, with absolute PBT rising by more than 3.8 times, while Profit After Tax (PAT) margin increased from 6% to 15%, with PAT growing by more than 3.9 times in absolute terms.
During the quarter, the Company commenced operations for its single largest order, valued at ₹307 crore, in the State of Rajasthan. It also secured an extension of its Coal Bed Methane (CBM) contract from Reliance Industries Limited, valued at over ₹166 crore, taking its order book to an all-time high of ₹761 crore. The Company was empanelled by Oil India Limited to provide 2D and 3D seismic data acquisition services across OIL’s onshore operations.
On the exploration front, the Company completed exploration work for the Jharkhand coal block, with the definitive Geological Report (GR) currently under preparation. It also completed an airborne survey—an advanced exploration technique used for faster assessment of large mining blocks—under its second Oman joint venture, with the corresponding Geological Report also under preparation.
Further strengthening its financial position, the Company received the balance 75% subscription amount for warrants issued on a preferential basis, which were subsequently converted into equity shares. Operationally, the Company continued to maintain an exemplary safety record, with 20 operations running across eight states without a single Loss Time Injury (LTI). As part of its long-term strategic investment initiatives, the Company is also participating in the ongoing rights issue of Alara Resources Limited, Australia.
Commenting on the results, Mr. Vikas Jain, Chairman & Managing Director said, “I am proud to share that we have delivered strong and encouraging financial and operational performance during first quarter of the financial year 27 by registering over 53% growth in revenue and 287% in profit after Tax Y on Y. The company during the quarter clocked a revenue of INR 617 Mn and PAT of INR. 93 Mn on consolidated basis. The standalone performance is also on similar lines; Mr. Jain said.
Mr. Jain went on to explain that “this performance is despite dynamic and often challenging business environment including substantial increase in input cost. During this challenging time, the company expanded its footprint, strengthened client relationships, and enhanced capabilities across multiple domains of mineral exploration and drilling” Mr. Jain added.
Mr. Vikas Jain further said that “Recognizing our services, the clients are equally supportive and made our order book quite robust crossing over INR 761 Crs mark giving clear visibility in short to medium term. We expect the trend will continue, strengthening it further in times ahead.”
Explaining about the promising outlook of the company he said that “with increasing government focus on mineral exploration, policy reforms, and the push for self-reliance in critical minerals, the sector is poised for strong growth and the company is well-positioned to play a leading role in this transformation and expressed his confidence of riding on the wave with promising year end outlook.” Mr. Jain added that “seeing the present scenario, company has ordered new rigs and other equipments to cope up with the enhanced business requirement.”
Mr. Jain went on to explain that “India has huge untapped natural resources and government focus on exploration is the only way to unlock and extract beneath the ground which will not only enable growth engine but also reduce dependence on imports thereby saving precious foreign exchange, South West Pinnacle is well poised to be part of this vision.”
Mr Jain also gave an encouraging update on Jharkhand coal block and said that “exploration activities have been completed and GR preparation and submission is on the anvil. Other mine development activities shall be undertaken now on fast track mode.”
While sharing development in second JV in Oman, Mr Jain enthusiastically stated that, “air borne survey has recently been completed in the mining block and GR preparation there also is on cards.”
SWPEL is an Integrated Service Provider, providing end-to-end drilling & exploration of natural resources viz. Coal, Ferrous, Non-Ferrous & Atomic Minerals and Conventional & non- conventional Oil & Gas and ground water investigation. SWPEL’s expertise also extends to carry out exploration using technological tools like surface geographical investigation, downhole geophysics, 2D/3D Seismic and Passive Seismic Tomography etc. Company has won a coal block in the state of Jharkhand, spread across 266 Hectares, having Geological Reserves of over 84 million tons. It has signed a Coal Mine Development and Production Agreement with the Ministry of Coal, Government of India. The Company has been recently notified as an accredited prospecting agency by Ministry of Coal, Government of India for carrying out prospecting operations for the exploration of coal and Lignite. Accordingly, exploration activities at the Coal Block in Jharkhand have since been completed and GR preparation is presently underway. Upon submission of GR, other mine development activities will be undertaken on fast track mode.
Further, Company is having two JVs in Oman. The First one is imparting mining services pursuant to a long term mining contract for Copper and Gold in Oman besides carrying out exploration and drilling services through a joint venture, namely, Alara Resources LLC., Oman. The second JV, formed recently has been allocated a mining block by Sultanate of Oman wherein the exploration activities are in progress.
The Company has successfully completed more than 165 projects during 19 years of journey since inception for most of the leading Government & Private Organizations and presently operating 20 projects on Pan India basis, in addition to JV Projects in Oman. SWPEL has completed approximately 3.2 million meters of drilling, 6.5 Lac meter of Geo physical logging 515 sq.km. of 3 D Seismic surveys, 411 LKM of 2 D seismic Survey for exploration of Coal, Mineral, Oil and Gas using 43 state of art drilling rigs having varied capacities to drill upto 2500 Meters depth and other equipment.