Dee Development Engineers shifts from hydrogen to biomass at Malwa site
Order book hits ₹1,940 crore as the company doubles near-term capex plans and eyes exceeding its FY30 revenue targets.
— 3 earlier stories on Dee Development Engineers Ltd →What's new with Dee Development Engineers Ltd
- Order book jumped 50% to ₹1,940 crore.
- Management abandoned the green hydrogen pilot project in favor of biomass pellets.
- FY27 revenue guidance is set at ₹1,500 crore with EBITDA margins above 19%.
Why this matters for Dee Development Engineers Ltd
The pivot from green hydrogen to biomass signals a recalibration of capital allocation at the Malwa power project. Doubling capex to ₹30 crore suggests a faster investment cycle, even as management bets on exceeding its long-term revenue targets.
What we're watching
- Execution speed of the new biomass pellet project.
- Ability to sustain 19% EBITDA margins against higher capex intensity.
- Specific contract wins that could push revenue beyond the current ₹1,500 crore target.
The full read
Dee Development Engineers is changing lanes. During its May 22 call, management confirmed it is abandoning its green hydrogen pilot project, opting instead to pursue biomass pellets at the Malwa site. The move accompanies a ramp-up in spending, with near-term capex guidance doubled to ₹20-30 crore. The order book is the growth engine here, sitting at ₹1,940 crore after a 50% increase. With FY27 revenue targeted at ₹1,500 crore and margins held above 19%, the firm is now signaling it may beat its own FY30 revenue goal of ₹2,500 crore. The strategy shift at Malwa is the primary departure from prior plans. How quickly the company converts its expanded order book into the cash flows needed for this higher capex is the next test.