Deep Industries Soars on Record ₹1,400 Crore ONGC Contract

Deep Industries' stock surged 17% to an all-time high after securing a massive ₹1,402 crore order from Oil and Natural Gas Corporation (ONGC). This landmark contract, the largest in the company’s history, more than doubles its current order book, signaling a significant growth trajectory for the firm.

The contract, spanning 15 years, focuses on Production Enhancement Operations at ONGC's Rajahmundry Asset. These operations aim to revitalize aging and depleted hydrocarbon fields, extending their productive life by another 15 years. The project will employ cutting-edge technologies and efficient practices to boost hydrocarbon reserves, marking a critical advancement in India's energy sector.

Paras Savla, Managing Director of Deep Industries, hailed the contract as a game-changer for the company. He noted that the Production Enhancement Contracts (PEC) framework would diversify revenue streams and significantly enhance profitability. Savla emphasized Deep Industries’ expertise in the Oil & Gas sector, underscoring its commitment to delivering exceptional results and sustainable growth.

Prior to this deal, Deep Industries' order book was valued at ₹1,246 crore as of June 30, 2024. With this new contract, the company’s portfolio has expanded dramatically, positioning it for further success in the industry. Deep Industries has been a leader in the Oil & Gas sector for over 30 years, offering services like Natural Gas Compression, Dehydration, and Integrated Project Management.

Known for its innovation, Deep Industries was the first in India to provide complete Gas Processing Facilities on charter hire. This pioneering approach has solidified its reputation as a key player in the industry, and the new ONGC contract reinforces its role as a driving force in India’s energy market.

News by Rahul Yelligetti