South West Pinnacle Exploration Ltd(SOUTHWEST)

NSE: SOUTHWESTBSE: 543986

₹ 184.35-2.67%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 602 crWebsite: www.southwestpinnacle.comUpdated: 24 Oct 2026

About

South West Pinnacle Exploration Ltd is an integrated exploration service provider delivering specialised drilling and exploration services across coal and non-coal minerals, oil and gas, coal bed methane, aquifer mapping, and geological and geophysical services. The company operates a fleet of over 45 rigs, employs over 800 people, and has successfully executed over 165 projects, establishing itself as one of India's trusted integrated exploration service providers.^[1][2][3]

Business segments

Drilling and Exploration is the sole reported segment, accounting for 100% of FY26 revenue of INR 243.02 crores, with an EBIT of INR 42.07 crores (17.3% margin).^[4]
The company also holds a Jharkhand coal block (Jogeshwar and Khas Jogeshwar), reported as a separate Coal Business segment under Ind-AS 108, with no revenue yet as of FY26.^[1]

Services and capabilities

Service lines span core drilling, reverse circulation drilling, large diameter drilling, underground drilling, geological and geophysical surveys, and other specialised exploration services.^[1]
Coal bed methane (CBM) production drilling for Reliance Industries is a major revenue stream, with over 200 CBM production wells drilled to depths up to 1,200 metres as of Q3 FY26.^[5]
The geoscience division is staffed by 43 experienced geoscientists and has completed over 6.5 lakh metres of geophysical logging; proven seismic execution covers 515 sq. km of 3D surveys and 411 LKM of 2D surveys.^[1]
The company entered the underground drilling segment in Q3 FY26 by commissioning four advanced rigs under a commercial contract from Hindustan Copper Ltd.^[1][5]
In Q1 FY27 the company was empaneled by Oil India Limited to provide 2D and 3D seismic data acquisition services across OIL's onshore blocks, opening a new seismic exploration vertical.^[3]

Fleet and operating capacity

The company operates a fleet of over 45 rigs and associated resources as of FY26, all substantially deployed.^[1]
All 43 rigs were fully deployed in Q1 FY27, with resource utilisation exceeding 100%; overflow work has been outsourced to third-party contractors and additional rigs hired.^[3]
The company is currently executing 20 projects across multiple regions as of FY26.^[1]
Aquifer mapping has been completed for Madhya Pradesh, Maharashtra and Gujarat, and for the Central Ground Water Board; two large passive seismic tomography projects for Oil India completed over the past three years.^[1]

Key operating numbers

Private-sector clients account for 77% of the order book as of Q1 FY27, up from roughly two-thirds at FY26 and approximately 46% at Q3 FY26.^[3][1][5]
Q1 FY27 operating revenue was INR 617 Mn, +53.5% YoY; EBITDA margin was 24.15% (+972 bps YoY); PAT margin was 15.07% (+910 bps YoY).^[3]
Three major customers represented 72.27% of total revenue in FY26, up from 48% in FY25, indicating rising concentration.^[1]
ROCE was 23% and ROE was 16% in FY26, up from 16% and 10% respectively in FY25.^[6]

Customers and distribution

Reliance Industries is the largest customer via a CBM production drilling contract; management expects Reliance to contribute 35 - 40% of total FY27 revenue, consistent with a 2.5-year continuous contract history.^[3]
Hindustan Zinc (Rajasthan core drilling, INR 307 crores, 4-year contract) and Hindustan Copper Ltd (underground drilling) are named clients alongside Oil India and JSW Energy.^[3][5][7]
International operations run through two joint ventures in Oman and a 1.56% strategic equity stake in Alara Resources Limited, an Australian listed company with primary interests in Oman and the Middle East.^[1]

Expansion and capex

Jharkhand coal block (Jogeshwar and Khas Jogeshwar; 266 hectares; ~84 MT geological reserves; W-IV grade): exploration completed, definitive geological report under preparation; commercial production targeted by FY2028-29.^[3][1][7]
Jharkhand coal block Phase 1 capex is approximately INR 200 crores, to be funded via internal accruals, bank debt and off-take agreements; total project capex is INR 400+ crores across two phases.^[3][7]
At peak production, the Jharkhand coal block is projected to generate INR 700 - 800 crores over the first three years, with EBITDA margins of 40 - 42%.^[1]
Oman JV 1 (Alara Resources LLC): 11-year copper mining contract worth USD 125 million is in progress, with resources booked for the next two years and four rigs deployed; projected annual net margin of 5 - 6%.^[1]
Oman JV 2 (Al Hadeetha Mining LLC; 17.5% stake): 1,400+ sq. km Block 22-B (copper, gold, silver, chromite, basalt) allocated; airborne geological survey completed as of Q1 FY27; ground geophysics to follow; revenue expected from approximately 2030.^[3][1]
Capital commitments of INR 1,720.64 lakhs remained outstanding as of March 31, 2026, down from INR 2,497.60 lakhs at March 31, 2025.^[1]

Recent developments

CRISIL revised its outlook on SWPEL's long-term bank facilities to 'Positive' from 'Stable' in December 2025; long-term rating BBB/Positive, short-term A3+.^[1]
In November 2025 the company was notified as an accredited prospecting agency for coal and lignite by the Ministry of Coal via Gazette notification, enabling exploration without a prospecting licence.^[1]
28,21,411 share warrants were converted to equity in July 2026; paid-up capital increased from INR 29.83 crores to INR 32.65 crores.^[1]
Reliance Industries CBM contract extension of over INR 166 crores was secured in Q1 FY27, with provision for a further extension exercisable by the client.^[3]
A strategic equity investment was made in Alara Resources Limited (Australia); the company is participating in an ongoing rights issue with up to AUD 1 million in Phase 2 to increase its direct stake from the current 1.25%.^[3][1]

Market Cap

₹602 Cr

High / Low

₹288 / 122

Stock P/E

15.2

Price / Book

3.0

Book Value

₹68

EPS

₹11.1

No. of Shares

2.98 Cr

ROCE

20.1%

ROE

17.6%

OPM

20.5%

Debt / Equity

0.39

Sales

₹243 Cr

Net Profit

₹33 Cr

Promoter holding

61.7%

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South West Pinnacle Exploration Ltd(SOUTHWEST)

About

Business segments

Services and capabilities

Fleet and operating capacity

Key operating numbers

Customers and distribution

Expansion and capex

Recent developments

Signal history

The analysis Screener can't give you

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