Synopsis: Micro-cap stock touches a 5% upper circuit after Q3 results showed 30.8% YoY revenue growth and a sharp 181% YoY jump in net profit, supported by strong EBITDA growth and a record ₹445 crore order book.
A small-cap company that is primarily engaged in the business of manufacturing and trading of footwear and accessories through its retail and wholesale network has come into the spotlight after the announcement of its Q3 results.
With a market capitalization of Rs. 644.33 crore, shares off South West Pinnacle Exploration Limited were trading at Rs. 216, down 2.7 percent from the previous day’s closing price of Rs. 222 per share. During the session, the stock touched an intraday high of Rs. 233.10, hitting the 5 percent upper circuit, before witnessing profit booking and retracing to lower levels later in the day.
Q3FY26 Results
Q3FY26 revenue stood at Rs. 62.66 crore, registering a strong 30.8 percent YoY growth over Rs. 47.91 crore in Q3FY25. On a sequential basis, revenue was largely flat, inching up 0.4 percent QoQ from Rs. 62.42 crore in Q2FY26, indicating stable topline performance.
EBITDA for Q3FY26 rose sharply to Rs. 17.73 crore, nearly doubling with a 99.0 percent YoY growth compared to Rs. 8.91 crore in Q3FY25. QoQ, EBITDA improved by 22.0 percent from Rs. 14.53 crore in Q2FY26, reflecting better operating leverage and margin expansion.
Net profit surged to Rs. 9.79 crore in Q3FY26, marking a robust 181.3 percent YoY growth over Rs. 3.48 crore in Q3FY25. On a quarter-on-quarter basis, profit increased by 28.8 percent from Rs. 7.60 crore in Q2FY26, supported by strong operational performance.
Other Updates
The company’s order book is at a record level of around Rs. 445 crore, supported by over 20 ongoing projects across India and joint venture operations in Oman. It is expanding rig and equipment capacity to meet rising demand, while its accreditation by the Government of India enables it to undertake mining prospecting and exploration without prior licenses, accelerating coal block activities in India and exploration work in Oman.
Management View
According to the Managing Director, Mr. Vikas Jain, the company delivered its best-ever Q3 and nine-month performance, with Q3 FY26 revenue rising 29 percent year-on-year to Rs. 627 million, supported by strong growth in EBITDA and PAT. He highlighted robust nine-month results, a record order book of Rs. 445 crore, active participation in new tenders, and expressed confidence in an even stronger performance in Q4, driven by a healthy order pipeline and team execution.
South West Pinnacle Exploration Limited is an integrated drilling and exploration services provider, offering end-to-end solutions across coal, metallic and atomic minerals, oil and gas, and groundwater, supported by advanced technologies such as geophysics and seismic surveys.
The company has executed over 160 projects in India and Oman, operates more than 20 active projects, holds a coal block in Jharkhand with reserves exceeding 84 million tonnes, and has joint ventures in Oman for mining and exploration, backed by extensive drilling experience and a large fleet of modern rigs.
A return on equity (ROE) of about 9.03 percent, a return on capital employed (ROCE) of about 11.7 percent and debt to equity ratio at 0.52 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 22.5x lower as compared to its industry P/E 23.1x.
Over the past five years, the company has demonstrated strong growth, achieving a revenue CAGR of 16 percent, a profit CAGR of 19 percent and a share price CAGR of 34 percent, reflecting both its operational performance and market confidence.
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