1,990% Net Profit Growth: Stock hits 20% upper circuit after announcing strong Q2 results

Synopsis:
Stock surged 20% after posting 1,990% profit and 128% revenue growth in Q2FY26. Strong financials, new projects, and an expanding order book highlight operational efficiency, technological expertise, and growing demand across mining, energy, and exploration sectors domestically and internationally.

The shares of the exploration service provider hit 20 percent upper circuit in today’s morning session after the company’s net profit and revenue zoomed by 1,990 percent and 128 percent YoY, respectively.

With a market capitalization of Rs 487.42 crore, the shares of South West Pinnacle Exploration Ltd were trading at Rs 162.95 per share, increasing around 13.91 percent as compared to the previous closing price of Rs 143.05 apiece.

Q2FY26 highlights

The shares of South West Pinnacle Exploration Ltd have seen significant movement after announcing its financial performance in Q2FY26, in which revenue increased by 128 percent on a year-on-year basis from Rs 27.36 crore in Q2FY25 to Rs 62.44 crore in Q2FY26. However, on a Quarter-on-Quarter basis, revenue zoomed by 55 percent from Rs 40.22 crore in Q1FY26 to Rs 62.44 crore in Q2FY26.

Moreover, net profit increased by 1,990 percent on a yearly basis from Rs 0.40 crore in Q2FY25 to Rs 8.36 crore in Q2FY26, meanwhile, on a quarter-on-quarter basis, net profit jumped by 248 percent from Rs 2.40 crore in Q1FY26 to Rs 8.36 crore in Q2FY26.

During the quarter, SWPE formed a new JV in Oman, Al Hdeetha Mining LLC, which began exploration after securing a mining block. The company also started phase two of CBM production under a  Rs 1.53 billion Reliance contract, won a  Rs 153 million JSW Energy project, and secured total new Q2 orders exceeding  Rs 850 million, raising its order book to  Rs 4.12 billion.

The company has drilled over 30 lakh meters and successfully delivered more than 150 projects, with 19 currently ongoing. It records a 15% three-year PAT CAGR, 12% ROCE, and maintains a healthy 0.51 debt-to-equity ratio, reflecting operational efficiency and financial strength.

South West Pinnacle operates across multiple Indian states, including Gujarat, Rajasthan, Madhya Pradesh, Odisha, Karnataka, Tamil Nadu, and Assam, among others. The company also has an international presence in Oman, highlighting its strong geographical reach and ability to execute projects across diverse terrains and regions.

South West Pinnacle’s client portfolio includes major names like Reliance Industries, Tata Steel, JSW Steel, NMDC, Vedanta, Hindustan Copper, De Beers, and UltraTech Cement. The company’s strong partnerships across mining, energy, and infrastructure sectors reflect its credibility and capability in executing large-scale exploration and drilling projects efficiently.

South West Pinnacle has 19 active projects across aquifer mapping, coal and non-coal exploration, seismic studies, and CBM production. Its robust order book stands at  Rs 4,122 million, with 52% from government contracts and 48% from private clients, showing steady growth from  Rs 2,607 million in FY23 to  Rs 4,122 million in H1 FY26.

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 groundwater investigation. SWPEL’s expertise also extends to carrying out exploration using technological tools like surface geographical investigation, downhole geophysics, 2D/3D Seismic, and Passive Seismic Tomography, etc.  

Written by Abhishek Singh

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post 1,990% Net Profit Growth: Stock hits 20% upper circuit after announcing strong Q2 results appeared first on Trade Brains.