Asian Energy Services Limited: Navigating Growth and Strategic Shifts in Q2 & H1 FY26

Asian Energy Services Limited (AESL), a prominent player in India's energy and mineral sectors, recently unveiled its unaudited financial results for the quarter and half-year ended September 30, 2025 (Q2 & H1 FY26). The period marks a pivotal phase for the company, characterized by significant strategic acquisitions and a robust order book, even as it navigates operational challenges and reporting complexities.

For Q2 FY26, AESL reported a consolidated revenue from operations of INR 102.0 crore. The half-year (H1 FY26) saw revenues reach INR 217.4 crore, reflecting a 38% year-on-year growth compared to H1 FY25. Despite this growth, the company's EBITDA for Q2 FY26 stood at INR 9.1 crore, with an EBITDA margin of 8.9%. This represents a decline from Q2 FY25, which saw an EBITDA of INR 16.8 crore and a margin of 17.2%. The management attributed this decline primarily to lower business activity caused by extended monsoons and the consolidation of Kuiper financials. Profit After Tax (PAT) for Q2 FY26 was a loss of INR 4.0 crore, compared to a profit of INR 9.3 crore in Q2 FY25.

Segmental Performance and Strategic Diversification

AESL's vertical performance for Q2 FY26 highlights its diversified business model. The Oil and Gas segment generated INR 74.9 crore in revenue, with an operating profit of INR 9.2 crore. Notably, this segment's Q2 FY26 revenue included approximately INR 41 crore contributed by the newly acquired Kuiper Group. The Mineral and Other Energy Services segment reported revenues of INR 72.6 crore, with an operating profit of INR 3.8 crore. The performance in this segment was impacted by prolonged unseasonal rains. It is important to note that the sum of the reported segment revenues (INR 147.5 crore) exceeds the consolidated revenue from operations (INR 102.0 crore) for Q2 FY26, indicating internal reporting adjustments or eliminations not explicitly detailed.

AESL's strategic shift from its legacy seismic services, which are cyclical and capital-intensive, towards more stable revenue streams like Operation & Maintenance (O&M) and the Mineral & Infrastructure segment, continues to gain momentum. This diversification strategy aims to reduce overexposure to a single industry and leverage the company's expertise in designing and constructing oil and gas production facilities for broader applications.

Financial Summary Table (INR Crore)

Key Strategic Initiatives Driving Future Growth

AESL has undertaken several key initiatives to bolster its market position and drive long-term growth:

1. Kuiper Group Acquisition: The company completed the acquisition of a 100% stake in Kuiper Group, UAE, for US$ 9.25 million. This strategic move, effective September 1, 2025, expands AESL's service portfolio and strengthens its international presence, particularly in the Middle East and Southeast Asia. Kuiper's operations are already contributing to revenue, with a monthly run rate of approximately INR 40 crore.

2. Merger with Oilmax Energy Pvt. Ltd.: AESL has filed for a merger by absorption of Oilmax Energy Pvt. Ltd. This initiative aims to create a unified entity, streamline structures, enhance synergies, and strengthen growth prospects by combining assets and capabilities across oil & gas and mineral sectors.

3. Expansion in Coal Handling Plant (CHP) Business: The company secured a substantial ~INR 459 crore contract (including taxes) from Mahanadi Coalfields Limited for a Coal Handling Plant in Odisha, to be executed over seven years. This is AESL's largest CHP order to date. Additionally, an integrated services contract of ~INR 865 crore (including taxes) from Vedanta Limited was secured in Q1 FY26. These contracts significantly boost AESL's order book, which stands at ~INR 2,005 crore as of November 14, 2025, providing strong revenue visibility.

4. Successful Fundraise: AESL successfully raised INR 157 crore through the issuance of preferential warrants. This fundraise ensures the company remains well-capitalized to pursue new opportunities in the O&M, CHP, and mineral sectors, supporting its strategic expansion plans.

Segment Order Book Comparison (as on Nov 14, 2025)

Outlook and Management Commentary

Management remains confident in achieving its stated full-year guidance, despite the operational challenges faced in the first half of FY26 due to extended monsoons. The company is focused on disciplined execution and expects operations to normalize as ground conditions stabilize. The strategic acquisitions and mergers are expected to unlock operational synergies and drive higher profitability in the coming quarters. AESL's diversified portfolio and strong order book position it favorably to capitalize on India's expanding energy and infrastructure needs, with a continuous pursuit of high-value, high-quality opportunities to drive sustained growth.