This article first appeared on GuruFocus .
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Revenue for Q3 FY26:INR 286.7 crore, a year-on-year growth of 77%.
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Revenue for 9M FY26:INR 780.4 crore, a year-on-year growth of 44.3%.
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Operating EBITDA for Q3 FY26:INR 47.6 crore, up by 40.9% year-on-year.
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Operating EBITDA for 9M FY26:INR 127.6 crore, up by 11.7% year-on-year.
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Operating EBITDA Margin for Q3 FY26:16.6%, compared to 3.5% in Q3 FY25.
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Operating EBITDA Margin for 9M FY26:16.3%, up from 11.1% in the previous year.
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Profit After Tax for Q3 FY26:INR 18.6 crore.
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Profit After Tax for 9M FY26:INR 49.5 crore, reflecting a significant year-on-year growth.
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Core Business EBITDA for 9M FY26:129.8% gross, a year-on-year growth of 175.5%.
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Projected Revenue from New Seamless Pipe Plant:INR 450 crore annually at optimal utilization.
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Release Date: February 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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DEE Development Engineers Ltd ( NSE:DEEDEV ) reported a strong year-on-year revenue growth of 77% for Q3 and 44.3% for the nine months of FY26.
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The company's core business EBITDA for nine-month FY26 stood at 129.8% gross, representing a year-on-year growth of 175.5%, driven by better execution and improved utilization.
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Operating EBITDA margin improved significantly to 16.6% in Q3 FY26 from 3.5% in Q3 FY25, indicating enhanced operational efficiency.
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The NRR facility is now fully operational, contributing to revenue growth and operating leverage as utilization ramps up.
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The seamless pipe plant is nearing commissioning, expected to generate peak annual revenue of around INR450 crores with an IRR of approximately 30% to 35%.
Negative Points
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The power segment continues to incur losses, with a tariff revision leading to a significant impact on EBITDA and PAT.
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The company faced a one-time impact of INR4.2 crore due to labor code changes, affecting the operating EBITDA.
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There is a high inventory holding due to the project-driven nature of the business, which ties up significant working capital.
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The power business is expected to be EBITDA neutral in the future, but it has been a cash drain in the current financial year.
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The company is exposed to risks related to tariff revisions in the power segment, which have previously impacted profitability.
Q & A Highlights
Q: Can you explain the impact of the tariff revision on the power business and its effect on EBITDA? A: The tariff revision led to a significant loss, as one of our plants' rates dropped from INR8.57 to INR3.5 per unit, resulting in a monthly revenue loss of INR2.5 crore. This directly impacts EBITDA and PAT, contributing to a total loss of INR14.3 crore due to the tariff revision.
Q: What is the expected EBITDA margin for the core business in FY27, considering the current challenges? A: We anticipate maintaining an EBITDA margin of 18% to 20% for the core business in FY27, despite the challenges faced in the power segment. This is aligned with our previous guidance.
Q: How will the new pellet plant impact the financials in FY27? A: The pellet plant is expected to be EBITDA neutral in FY27. While it may not generate significant gains, it will eliminate the losses incurred in the current year, which are around INR36 crore.
Q: What are the strategic plans for leveraging DEE's capabilities in the nuclear energy sector? A: We are in advanced discussions with NPCIL and private players to secure contracts in the nuclear sector. This aligns with our strategy to diversify into nuclear, semiconductor, and pharma sectors, focusing on piping manufacturing solutions.
Q: How does DEE plan to manage its inventory levels relative to its order book? A: Our inventory levels are aligned with our order book, not past sales, due to the project-driven nature of our business. We maintain inventory based on current orders, which requires us to hold significant stock to meet project specifications and timelines.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
