Deep Industries Stock Surges 4% After It Bags ₹59 Crore ONGC Contract for Gas Services

Synopsis: Deep Industries shares jump 4% after bagging ₹59 crore ONGC gas compression contract for Andhra Pradesh’s Malleswaram field. Thedeal covers vital equipment like compressors and dehydration units. This will boost their order book in India’s expanding natural gas sector.

Deep Industries has secured a major contract from state-owned oil giant Oil and Natural Gas Corporation Limited (ONGC). The deal places the company at the centre of India’s growing natural gas sector.

ONGC has issued a Letter of Award to Deep Industries for gas compression and processing services. The contract covers the Malleswaram field under ONGC’s Rajamundry Asset in Andhra Pradesh. The total value of the contract stands at approximately Rs 59 crores over three years.

Following the announcement, Deep Industries shares drew attention from market participants. With a market capitalisation of Rs. 2,913 crores, rose Rs. 463.75, up 4.04 percent from its previous closing price of Rs. 445.70. Furthermore, the stock over the past year has given a return of 5.9 percent.

Deep Industries will provide hiring services for key gas processing equipment. This includes a Natural Gas Compressor, a Gas Dehydration unit, and an HC Dew Point Depression system. These systems help ONGC process raw gas efficiently at the Malleswaram field. The work is fully domestic in nature. Both the contracting party and the service provider operate within India.

The deal runs for a period of 3 years. This gives Deep Industries a steady revenue stream from a trusted public sector client. Long-term contracts with ONGC are considered stable and low-risk in the energy services industry.

Furthermore, the contract strengthens Deep Industries’ position in the gas compression services space. The company continues to build its order book through domestic upstream oil and gas projects.

ONGC is India’s largest government-owned oil and gas explorer. It operates across multiple assets and basins throughout the country. The Rajamundry Asset, located in the Krishna-Godavari basin, is one of its key producing regions. As a result, winning a contract here carries strong operational and reputational significance for any service provider.

In conclusion, this Rs 59 crore order reflects growing demand for specialised gas services in India. Deep Industries appears well-placed to capture more such opportunities as domestic gas production expands.

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