This Turnaround Exploration Company Secures Rs 300 Crore Order; Announces Rs 400 Crore Capex Plan

Indian equity markets opened lower on Tuesday, with the benchmark Nifty 50 index declining 0.78 per cent to 23,630.75 in early trade. Despite weakness in the broader market, stock-specific action remained visible in select mining and exploration counters. In this segment, South West Pinnacle Exploration remained in focus after the company’s Q4FY26 earnings concall highlighted strong growth outlook, large order wins and future expansion plans. On Tuesday, South West Pinnacle Exploration share price declined 1.32 per cent to Rs 218.90.

Q4FY26 Concall Highlights

The management stated that FY26 marked the company’s highest-ever annual performance, while Q4FY26 was its best-ever quarterly performance in terms of profitability. The company reported Q4FY26 operating revenue of around Rs 78 crore, up 5 per cent YoY, while PAT increased around 30 per cent YoY to Rs 13 crore. For FY26, revenue stood at Rs 243 crore, registering 35 per cent growth YoY, while PAT surged 101 per cent YoY to Rs 33 crore.

Management stated that the company secured its largest-ever single order worth over Rs 300 crore from Hindustan Zinc during FY26. The company currently has 19 ongoing projects across multiple regions and exploration domains in India.

The company stated that more than two-thirds of its Order Book now comes from private sector clients, resulting in stronger cash flows and improved working capital efficiency. Management further added that the exploration sector is currently witnessing strong demand and shortage of resources, leading to better margins across projects.

Capex and Expansion Plans

Management stated that the company plans to incur around Rs 400 crore capex for its Jharkhand coal block development in two phases, with around Rs 200 crore expected in the first phase. The company added that most of the initial investment would be funded through internal accruals, Bank support and offtake agreements.

The company also informed that four additional drilling rigs are currently under order and are expected to be delivered over the next three to six months. Management stated that the company added around seven to eight rigs during FY26 and currently operates a fleet of 40 rigs.

South West Pinnacle further stated that its Oman operations are progressing well through two joint ventures. Exploration activities have commenced at a newly awarded mining block spread across around 1,400 square kilometres containing minerals including silver, gold, copper, basalt and chromite.

Future Outlook

Management stated that the company expects around 20 per cent revenue growth on a year-on-year basis in the short-to-medium term, with substantial increase in profitability supported by operating leverage. The company also highlighted strong opportunities in coal bed methane, underground coal gasification and aquifer mapping projects supported by increasing government focus on energy security and mineral exploration.

The company added that it has already participated in tenders worth Rs 500 crore to Rs 700 crore and expects additional order inflows over the next one to two months.

About South West Pinnacle Exploration

South West Pinnacle Exploration is engaged in providing integrated exploration and drilling services across coal and non-coal mineral exploration, aquifer mapping, coal bed methane exploration, seismic exploration and underground drilling services.

The company operates across multiple exploration domains with projects for clients including Reliance Industries, Vedanta, ONGC, Oil India, Hindustan Zinc and Hindalco. The company also has overseas operations through joint ventures in Oman.

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Disclaimer: This article is for informational purposes only and not investment advice.