Corporate Performance     

Published: August 31, 2025
Updated: August 31, 2025

Asian Energy Services

Mining the upstream O&G value chain

Based at Mumbai and listed on both the bourses, Asian Energy Services (AESL) offers end-to-end services which extend across the entire upstream value chain. AESL’s service offerings comprise integrated oil & gas services, including 2D and 3D seismic geographical data acquisition, operations and maintenance of onshore and offshore oil & gas production facilities, production enhancement services and mining services, including supply and installation of material handling plants and rapid loading systems. Since its acquisition by OEPL, AESL has diversified its business verticals to capture more value across the energy and upstream oil & gas value chains.

During FY25, the company achieved a total revenue of Rs 465 crore, a 52% growth compared to FY24. In Q4FY25, revenue surged to Rs 215.4 crore, marking an 81% increase on a yoy basis. The EBITDA margin of 15.5% translated to EBITDA for the full year at Rs 72.3 crore, reflecting a strong improvement of 67% yoy. In Q4 FY25 itself, EBITDA increased to Rs 33.5 crore with a 35% yoy growth. Similarly, PAT for the full year reached Rs 42.2 crore, 65% up over the previous year, while in Q4 FY25 the PAT increased to Rs 22.6 crore, 54% up yoy. In other words, Q4 has contributed significantly to revenue and profits of FY25. In the current equity capital of Rs 44.70 crore, the promoter group holds 60.97%. The reserves of the company are at Rs 354 crore, translating into a book value of Rs 89.18 per share of Rs 10 face value.

Continuing its improved performance of the last quarter of FY25 in the first quarter of FY26, AECL boosted continued its growth trajectory with an impressive show on a yoy basis, wherein the revenue is up by 90%, EBITDA up by 72% at Rs 12.1 crore and PAT up by 173% to Rs. 5.6 crore. The company aims to reach the revenue mark of Rs 650-700 crore for the full FY26. Expressing his sense of satisfaction, Kapil Garg, Managing Director, said, “We are pleased to report that FY26 has commenced on a strong footing, with revenue from operations, EBITDA and profit after tax surging for Q1 on a yoy basis, supported by the timely execution of ongoing contracts, improved resource utilization and operational efficiencies across service lines.”

ORDERS BOOM

The business prospects of the company have brightened considerably. As of March 2025, the order book which was Rs 973 crore now stands increased to Rs 1,688 crore, comprising oil & mining 75.2%, infrastructure/CHP 19.3% and seismic 5.5%. Commenting on the encouraging order book, Mr Garg said, “In July, we further strengthened our business pipeline by securing two significant contracts. The first is an integrated service contract valued at Rs 772 crore from Vedanta Limited for field development, and the second is a 3D seismic data acquisition and processing contract worth around Rs 46 crore from Sun Petrochemicals. These wins underscore the depth of our client relationships, the trust in our execution capabilities, and the diversity of our offerings. Together with our existing,

well-diversified order book, they provide strong multi-year revenue visibility and ensure a balanced mix of long-term O&M contracts alongside high-value project work.” In April this year, AESL announced the acquisition of a 100% stake in the Kuiper Group, UAE from Gulf Capital (a private equity fund), for a consideration of $ 9.25 million in an all-cash deal which will be funded through a combination of internal accruals and debt.

PRO-GROWTH MOVE

The Kuiper Group is a globally recognized provider of comprehensive and integrated manpower solutions, specifically tailored for the energy sector across the Middle East and Southeast Asia. The Kuiper Group has recorded revenue of $ 68 million in the year ending December 2024 and is a profitable business, further strengthening the strategic value of the acquisition. The acquisition of the Kuiper Group is a strategic initiative by AESL to expand its services offering of integrated operations and maintenance (O&M) across the Middle East and Southeast Asian countries, leveraging Kuiper’s presence. Kuiper has a well-established presence in energy-rich nations such as Saudi Arabia, Qatar and the UAE. This will position AESL to scale its operations, access this larger addressable market and support its long-term growth ambitions.

Giving an update on this, Mr Garg said, “Our planned acquisition of the Kuiper Group is in its final stages and is expected to close in the coming months. This strategic move will significantly expand our capabilities and enhance our geographic reach across the Middle East and Southeast Asia. With a strong order book, a robust financial position and a proven execution track record, we are confident of delivering on our FY26 guidance without any changes to our stated targets.”

FUND RAISER

During 2023, the company had issued 33.5 lakh warrants to the promoter group on a preferential basis, which got converted into an equal number of equity shares in August 2024 at an issue price of Rs 127.50 (premium of Rs. 117.50 per share). Subsequently, 47 lakh convertible warrants have also been issued to the non-promoter group in November 2024 at Rs 335 each, with holders eligible for one equity share against each warrant within 18 months. The company will end up raising Rs 157.45 crore on this account, whereby the promoter group’s holding will stand reduced to 55%.

Undoubtedly, the company’s domains offer bright prospects. Moreover, the management’s focus has also been sharpened to accelerate growth in both revenue and EBITDA margins, which makes AESL an investment candidate especially for investors who have patience. However, considering the present geopolitical turbulence, it would be prudent to enter the stock in small quantities and accumulate at regular intervals. The CMP is Rs 332.65 with a yearly highlow of Rs 444 and Rs 215. The market capitalisation at Rs 1,489.42 crore certainly offers good scope for appreciation.