DEE Development Engineers Ltd. delivered a sharp earnings rebound in the December quarter, with revenue rising 77% year-on-year to ₹286.7 crore and operating profit surging more than sevenfold to ₹47.6 crore, driven by strong execution in its piping and fittings business catering largely to the oil and gas sector, the company said in its Q3FY26 earnings release.
Profit after tax for the quarter stood at ₹18.6 crore, reversing a loss of ₹13.3 crore in the year-ago period, marking a strong turnaround in financial performance. EBITDA margins expanded sharply to 16.6%, compared with 3.5% in Q3FY25, reflecting improved capacity utilisation and operating leverage as execution volumes rose.
On a sequential basis, revenue increased from ₹270 crore in Q2FY26, while operating EBITDA rose from ₹44.1 crore, indicating sustained momentum across quarters.
Margin Expansion
For the nine months ended December 2025, the company’s revenue from operations rose 44.3% year-on-year to ₹780.4 crore, while operating EBITDA more than doubled to ₹127.6 crore, compared with ₹60.3 crore in the corresponding period last year. Net profit for the nine-month period stood at ₹49.5 crore, up from ₹12.1 crore a year earlier.
DEE said its strong performance was supported by healthy execution momentum in its core piping and fittings segment, alongside strong supplies to the oil and gas sector. The company also benefited from higher utilisation at its manufacturing facilities, which drove margin expansion.
The company’s order inflows remained robust during the quarter, with new orders worth ₹251 crore received, primarily from the power sector. As a result, its closing order book stood at ₹1,302.73 crore as of December 31, 2025, providing strong visibility for future revenue growth.
Chairman and Managing Director Krishan Lalit Bansal said the company’s performance reflected strong operating execution amid India’s strengthening capital expenditure cycle. He noted that corporates across infrastructure, energy and industrial segments are stepping up investment in plant and equipment, supporting demand for project delivery and capacity expansion.
Bansal also pointed out that the implementation of new labour codes led to a one-time operational impact of ₹4.2 crore during the quarter, as past service obligations were adjusted. Despite this, the company maintained strong margins due to operating leverage and improving capacity utilisation.
Operational Milestone
Operationally, DEE said its Anjar Pipe Fabrication Unit, which commenced operations in September 2025, was fully operational during the quarter and is benefiting from rising utilisation levels. The Anjar Seamless Pipe Plant remains on track for commercialisation in the current quarter, which is expected to further strengthen the company’s execution capabilities in high-growth segments.
The company also highlighted improving visibility for order flows in the coming months, particularly from the power sector, while noting ongoing restructuring efforts in its non-core power generation business amid tariff-related litigation.