South West Pinnacle shares hit a day’s high of Rs 232.10 on BSE after bagging a Rs 167 crore contract extension from Reliance.

Coal bed methane, or CBM, is natural gas trapped inside coal seams, and companies like South West Pinnacle provide the drilling and production support needed to extract it.

This extended contract with Reliance is worth around Rs 166.82 crore, including GST, and covers work in Madhya Pradesh. It runs for 15 months, with an option to extend by a further six months.

There’s a practical reason this order matters more than it might look on paper. The company said it already has the machines, equipment and trained manpower in place for this work, so no fresh capital needs to go into new assets.

Revenue from the contract should start flowing from the second quarter of FY27. South West Pinnacle also picked up a smaller order recently.

It received a letter of award worth about Rs 5.89 crore from CMPDI, a Coal India subsidiary, for coal exploration work in Jharkhand, to be completed within 180 days.

Neither order counts as a related party transaction, and the company confirmed its promoters hold no stake in Reliance Industries.

On the numbers front, the company’s standalone Q4 FY26 revenue came in at Rs 77.73 crore, with standalone net profit at Rs 11.34 crore for the quarter, as per its BSE filing.

Its order book has now crossed Rs 760 crore, which gives some visibility on future revenue.

By 12:22 pm, the stock was trading at Rs 222.20 on BSE, up 1.67%, from Monday’s close of Rs 218.55. The stock has gained more than 75% over the past nine months and remains about 22% below its 52-week high of Rs 287.95.

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