Synopsis: DEE Development reported a strong business update for May, supported by healthy order additions across key sectors, improving project visibility and maintaining execution momentum at the start of the new fiscal year.
The shares of this small cap company majorly engaged in design, engineering, and fabrication of complex piping systems, pressure vessels, heat exchangers and many more were in focus after its total order book crosses Rs. 2400 Crores
With the market capitalization of Rs. 4904 Crores, the shares of DEE Development Engineers Ltd hit upper circuit of 5 percent to Rs. 707.95 per share from Rs. 674.25 per share and is trading at a P/E of 62.1 where as industry P/E stands at 29.9
Strong order inflow drives order book growth
DEE Development’s total order book increased to Rs. 2,433.9 crore as of May 31, 2026, from Rs. 1,909.8 crore at the beginning of the month. The increase was driven by fresh order inflows of Rs. 631.9 crore, while the company executed projects worth Rs. 107.8 crore during the month. On a cumulative basis for FY27, order inflows stood at Rs. 681.9 crore, while cumulative execution reached Rs. 177.5 crore.
The company’s core piping business remained the largest contributor. In the Indian operations, the power segment order book rose to Rs. 1,251.4 crore after receiving fresh orders worth Rs. 274.8 crore during May. The oil & gas segment reported a closing order book of Rs. 881.2 crore, supported by fresh inflows of Rs. 358.5 crore. Together, these two segments accounted for the bulk of the company’s order pipeline and highlighted continued demand from energy-related industries.
Beyond India, DEE Thailand ended May with an order book of Rs. 184.8 crore in the power segment, while the heavy fabrication business reported an order book of Rs. 110.2 crore. The Molsieve Designs business maintained an order position of Rs. 3.2 crore. These businesses provide additional revenue streams and support diversification across geographies and end markets.
The update also included details on the company’s power generation assets. For Malwa Power, the electricity regulator fixed the tariff for FY26 at Rs. 5.224 per kWh, comprising Rs. 0.97 fixed cost and Rs. 4.254 variable cost, with a 5percent annual escalation on the variable component. As a result, the applicable tariff for FY27 stands at Rs. 5.437 per kWh. Based on this tariff, the company expects projected FY27 revenue of around Rs. 47.7 crore, including approximately Rs. 23.4 crore from its pellet plant operations. However, the company may challenge the tariff order before the appellate tribunal to seek a higher rate.
For DEE Development’s own power division, the regulator had revised the tariff to Rs. 5.877 per unit, but the company challenged the decision before the Punjab & Haryana High Court. Following the court’s interim order, the company continues to supply electricity at the existing tariff of Rs. 7.47 per unit, while any recovery sought by the power utility on account of tariff differences remains on hold until the matter is finally decided.
About the Company and Financials
DEE Development Engineers Ltd. is an engineering and manufacturing company specializing in process piping systems, piping solutions, and heavy fabrication equipment for the power, oil & gas, chemical, and industrial sectors. The company operates manufacturing facilities in India and Thailand and also has interests in power generation and industrial businesses, serving both domestic and international customers.
Revenue rose 26.6percent YoY to Rs. 362 crore from Rs. 286 crore. Operating profit remained flat at Rs. 64 crore. Net profit declined 12.5percent YoY to Rs. 28 crore from Rs. 32 crore.
Revenue increased 26.1 percent QoQ to Rs. 362 crore from Rs. 287 crore. Operating profit rose 33.3percent QoQ to Rs. 64 crore from Rs. 48 crore. Net profit jumped 47.4percent QoQ to Rs. 28 crore from Rs. 19 crore.
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