South West Pinnacle Shares Jump 5% After Securing LoAs for Coal Exploration Projects

Synopsis: South West Pinnacle Exploration Ltd jumped upto 5% after receiving two CMPDI awards for coal exploration in Madhya Pradesh and Maharashtra worth about ₹30.45 crore, with projects executions going upto 910 days

The shares of the Micro-Cap stock company specialising in integrated, end-to-end drilling and exploration services for coal, ferrous, non-ferrous, and atomic minerals, as well as coal bed methane (CBM) and oil & gas, are in focus on securing two LoAs from Central Mine Planning and Design Institute Ltd, Mini Ratna PSU, and a Coal India subsidiary.

With a market capitalization of Rs. 625.98 Crores on Monday, the shares of South West Pinnacle Exploration Ltd rose upto 4.97 percent, reaching a high of Rs. 210.00 from its opening price of Rs. 200.05. 

South West Pinnacle Exploration Ltd, engaged in integrated, end-to-end drilling and exploration services for coal, ferrous, non-ferrous, and atomic minerals, has received two Letters of Award from CMPDI, a Mini Ratna Public sector company and subsidiary of Coal India Ltd, for detailed coal exploration in Madhya Pradesh and Maharashtra. 

The total value of both contracts, including GST, is approximately Rs. 30.45 crores. The Madhya Pradesh project is long-term, while the Maharashtra project is short-term. These awards are expected to strengthen SWPE’s order book and contribute positively to its revenue and profitability.

CMPDI will handle all statutory clearances in forest areas and will provide the exploration scheme, approve borehole locations, and oversee the work. Both contracts are domestic and are to be completed within 910 days and 210 days respectively (each including 30 days for mobilisation). 

Financials

The company’s revenue rose by 128 percent from Rs. 27.36 crore in September 2024 to Rs. 62.44 crore in September 2025. Meanwhile, the Net profit rose from  Rs. 0.40 crore to  Rs. 8.36 crore during the same period.

The company shows a decent return on capital employed (ROCE) of 12.5 percent and a return on equity (ROE) of 10.2 percent, indicating healthy profitability. Its debt-to-equity ratio of 0.52 reflects a moderate level of leverage, suggesting a balanced and manageable debt position.

South West Pinnacle, established in 2006, has rapidly grown into one of India’s leading private exploration companies. With a strong track record in mineral and unconventional energy resource exploration, it is backed by an experienced leadership team and a dynamic workforce that ensures efficient project execution and timely delivery.

As an integrated service provider, the company offers end-to-end drilling and exploration solutions across a wide range of sectors, including coal, ferrous and non-ferrous minerals, atomic minerals, as well as conventional and unconventional oil and gas. It operates a fleet of 40 advanced drill rigs capable of reaching depths up to 2,500 meters, supported by a team of 15 geoscientists and specialized logging and geophysical survey equipment.

Over the past 19 years, South West Pinnacle has successfully completed over 150 projects for government and private clients and is currently handling 19 active projects across India. With a strong focus on Health, Safety & Environment (HSE), the company has drilled more than 3.0 million meters without a single Lost Time Injury (LTI) since inception and has an Robust Order Book of  Rs.  4,122 Mn.

Its marquee clientele includes Reliance, Vedanta, Oil India, CMDI, CGWB, ONGC, Hindustan Copper Ltd., and Hindalco, with operations extending across domestic and select international markets.

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