South West Pinnacle Exploration surges 8% as Q1 FY27 profit nearly quadruples
AI Summary
South West Pinnacle Exploration Limited's shares surged 8.42% to ₹255.76 following a strong quarterly earnings report, with profit after tax increasing nearly fourfold year-on-year. The company reported a 53% rise in consolidated revenue and an all-time high order book of ₹761 crore, bolstered by significant contracts and ongoing operations across multiple states. With a robust performance and strategic initiatives in place, the stock has gained over 72% in the past year.
Shares of South West Pinnacle Exploration Limited jumped 8.42 per cent to ₹255.76 on Tuesday after the Gurgaon-based drilling and exploration company reported a sharp turnaround in quarterly earnings, with profit after tax rising nearly fourfold year-on-year.
The company posted consolidated revenue of ₹617 million for Q1 FY27, up 53 per cent from ₹402 million in the same quarter last year. PAT surged 287 per cent to ₹93 million from ₹24 million, while EBITDA margins expanded significantly from 14 per cent to 24 per cent over the same period.
Trading volume on NSE stood at 13.77 lakh shares by mid-morning, with the stock touching an intraday high of ₹257, against a 52-week high of ₹275 hit in June 2026. Buy orders accounted for over 81 per cent of the order book.
On the operational side, the company commenced execution of its single largest order worth ₹307 crore in Rajasthan and secured a CBM contract extension from Reliance Industries valued at over ₹166 crore. Its order book reached an all-time high of ₹761 crore, providing near-term revenue visibility. The company is currently running 20 operations across eight states with zero loss-time injuries recorded.
SWPEL also completed an airborne survey under its second joint venture in Oman, with a geological report under preparation. The company is participating in a rights issue of its Australian partner, Alara Resources Ltd, to reinforce its strategic position there. Separately, coal block exploration in Jharkhand has been completed and a definitive geological report is being drafted.
Chairman and Managing Director Vikas Jain attributed the performance to expanded client relationships and stronger capabilities, and noted that new drilling rigs have been ordered to meet growing demand. He cited increasing government focus on domestic mineral exploration and critical minerals as a structural tailwind for the sector.
The stock has gained over 72 per cent in the past year and trades at a trailing P/E of 17.75.
Original Article
Published on Hindu BusinessLine