Hindalco awards contract to South West Pinnacle for Maharashtra copper block

South West Pinnacle Exploration Limited, listed on the NSE as SOUTHWEST, has formally announced the receipt of a Letter of Intent from Hindalco Industries Limited for a copper exploration assignment in Maharashtra. The contract, valued at ₹6.7 crore inclusive of GST, involves key services such as geological report preparation, drilling, and other exploration-related operations. The mobilisation period is scheduled to commence within two weeks of receiving intimation, with a total execution timeline of 62 weeks.

While the absolute size of the contract may appear modest, its significance lies in South West Pinnacle’s foray into high-value non-ferrous metal exploration, especially at a time when copper is gaining renewed importance amid India’s transition toward electric mobility and green energy infrastructure. This engagement with a flagship industrial conglomerate like Hindalco provides important signalling value to the broader industry and investor community, highlighting South West Pinnacle’s technical credibility in mineral diagnostics and geological execution.

How South West Pinnacle Delivered One of Its Strongest Fiscal Performances in FY25

The company concluded FY25 with impressive growth across all critical financial parameters. Total consolidated revenue rose from ₹135.85 crore in FY24 to ₹185.14 crore in FY25, representing a 36% year-over-year growth. Operating profit followed suit, with EBITDA expanding to ₹39.66 crore from ₹28.18 crore, and margins improving slightly from 20.74% to 21.42%. Profit after tax more than doubled to ₹16.42 crore from ₹8.27 crore, lifting the PAT margin to 8.87% from 6.09% a year earlier.

Earnings Per Share (EPS) improved from ₹2.96 to ₹5.83, indicating robust bottom-line performance and efficient cost management. On a quarterly basis, Q4 FY25 saw revenue jump to ₹74.68 crore from ₹45.55 crore in Q4 FY24, while PAT surged to ₹10 crore from just ₹2.8 crore, reinforcing the consistency of execution across verticals and geographies. EBITDA margin also expanded to 23% in the March quarter, up from 20% in the same period last year, reflecting strong project performance and operational discipline.

What the Stock’s Performance and Delivery Volumes Suggest About Investor Confidence

As of the last trading session on May 30, 2025, shares of South West Pinnacle closed at ₹140, marking a marginal decline of 1.29% on the day. However, the broader trajectory remains optimistic, with the stock up nearly 40% on a year-to-date basis. This rally has been supported by steady earnings visibility, a diverse order book, and growing traction in international markets such as Oman.

The company’s market capitalization currently stands near ₹417 crore, with a P/E ratio of 28.05. In terms of trading activity, approximately 51.65% of traded shares were deliverable on the exchange, a sign of healthy retail and institutional confidence rather than speculative interest. While updated institutional shareholding data for Q4 FY25 is awaited, the deliverable volumes and increasing earnings momentum suggest strong underlying sentiment from long-only investors and domestic fund managers.

How the Oman Strategy Is Redefining South West Pinnacle’s Global Outlook

South West Pinnacle’s Oman ventures have emerged as cornerstone components of its growth strategy. The company has operationalized two joint ventures in the Sultanate with participation from Australian partner Alara Resources. The first joint venture, active since 2022, is executing an 11-year copper mining contract valued at USD 125 million, awarded by the Ministry of Energy and Minerals in Oman. Operations are already underway and contributing materially to the company’s overseas revenues.

In a second major milestone, a new joint venture was formed in 2024, involving multiple stakeholders including Alara Oman Operations Pty Ltd. This JV was awarded a massive 1,452 square kilometer exploration-cum-mining block via royal decree. The block is known to have significant reserves of copper, gold, silver, chromite, and basalt. The JV has exclusive rights to explore and eventually exploit the block under Oman’s revised mineral laws, which aim to reduce economic dependence on oil and foster diversification through resource monetization.

These ventures position South West Pinnacle not only as a credible Indian player but also as a rising name in the Middle East’s mining ecosystem. Oman’s strategic push to expand its non-oil GDP is expected to open up additional opportunities for partners like South West Pinnacle, particularly in contract drilling, geological services, and asset development.

What Makes South West Pinnacle a Standout in India’s Exploration Services Sector

The company has emerged as a fully integrated services provider offering a wide suite of solutions across the exploration and mining value chain. Its capabilities span core drilling, large-diameter coring, reverse circulation (RC) drilling, underground drilling, 2D/3D seismic surveys, aquifer mapping, passive seismic tomography, and CBM exploration and production. As of FY25, the company has completed over 29 lakh meters of drilling, 515 square kilometers of 3D seismic mapping, and 411 line kilometers of 2D seismic work.

Its client base includes some of India’s largest resource users such as Reliance Industries, Oil India, Tata Steel, CMPDI, and CGWB. In the last year alone, the company won a ₹150 crore contract from Reliance for CBM production, a ₹60 crore order from Oil India for exploration using passive seismic tomography, and ₹100 crore worth of aquifer mapping contracts across four Indian states. These contracts reinforce the firm’s leadership in both hydrocarbon and mineral diagnostics.

The Hindalco contract, though smaller in value, adds a strategic non-ferrous metal dimension to the portfolio. As India scales up copper consumption for electric vehicles and renewable energy infrastructure, South West Pinnacle’s early involvement in copper exploration could offer a multi-year runway for growth.

A Deeper Look at Balance Sheet Strength and Future Leverage Potential

The company’s FY25 balance sheet reflects enhanced financial stability and growth potential. Shareholder equity rose to ₹170.6 crore from ₹121.5 crore in the previous fiscal, while total assets climbed to ₹276.05 crore. The cash and cash equivalents position saw a remarkable jump to ₹19.44 crore from just ₹0.61 crore in FY24, highlighting improved liquidity and operating cash flow conversion.

Long-term borrowings fell to ₹12.21 crore from ₹25.69 crore, underscoring the management’s effort to deleverage and optimize the capital structure. With increased earnings capacity, a stronger cash profile, and lower leverage, the company now has room to explore inorganic opportunities or ramp up capex in Oman and Jharkhand coal block development.

Why Analysts Are Watching South West Pinnacle as a Mid-Cap Re-rating Candidate

The company’s robust financials, expanding international footprint, and consistent contract wins are gradually pushing it into investor conversations as a potential mid-cap re-rating story. With India targeting 1.58 billion tonnes of coal production by 2030, and global interest rising in non-invasive exploration techniques, South West Pinnacle is well-positioned to ride structural tailwinds in both traditional and green resource development.

Moreover, the company is not heavily exposed to speculative commodities and maintains a diversified order book across public and private sectors. Its capacity to operate across coal, CBM, aquifer mapping, and non-ferrous metals reduces dependence on any single vertical. Analysts expect further contract announcements over the next two quarters, particularly in international geographies and under India’s expanding exploration initiatives, including the National Mineral Exploration Policy and Mission Anveshan.

What Comes Next for South West Pinnacle in FY26 and Beyond

Looking ahead, South West Pinnacle’s growth visibility remains strong. The company is preparing to accelerate development of its commercial coal block in Jharkhand, estimated to hold 84 million tonnes of reserves. Production is expected to commence by FY27–28, contributing meaningfully to topline and potentially enabling entry into coal trading and ancillary infrastructure development.

In Oman, early-stage exploration on the new 1,452 sq. km. block is expected to intensify through FY26, with initial feasibility and geological survey results likely to be material catalysts. Management is also evaluating additional JV opportunities in the GCC region, leveraging its operational credentials and partner ecosystem.

Domestically, the focus will remain on high-value contracts in aquifer mapping, CBM, and passive tomography—a niche field where the company has already built a technological edge. With exploration and mining becoming focal points of India’s capex-led growth model, South West Pinnacle’s early mover advantage, execution reliability, and cross-domain expertise could prove decisive in winning larger, longer-term mandates.

South West Pinnacle Exploration Limited is demonstrating that a disciplined, technically sound, and geographically diversified approach to resource exploration can produce sustainable value in a volatile sector. From copper blocks in Maharashtra to joint ventures in Oman’s mineral-rich deserts, the company is drilling deeper into opportunity—one contract at a time. For investors, it remains one of the most compelling mid-cap mining and energy services plays to watch in FY26.