This Is Why We Think Deep Industries Limited's (NSE:DEEPINDS) CEO Might Get A Pay Rise Approved By Shareholders

Key Insights

• Deep Industries will host its Annual General Meeting on 8th of September
• Total pay for CEO Paras Savla includes ₹4.20m salary
• Total compensation is 55% below industry average
• Over the past three years, Deep Industries' EPS fell by 26% and over the past three years, the total shareholder return was 419%

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Shareholders will probably not be disappointed by the robust results at Deep Industries Limited (NSE:DEEPINDS) recently and they will be keeping this in mind as they go into the AGM on 8th of September. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

Check out our latest analysis for Deep Industries

How Does Total Compensation For Paras Savla Compare With Other Companies In The Industry?

Our data indicates that Deep Industries Limited has a market capitalization of ₹36b, and total annual CEO compensation was reported as ₹4.9m for the year to March 2025. That is, the compensation was roughly the same as last year. In particular, the salary of ₹4.20m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the India Energy Services industry with market capitalizations ranging between ₹18b and ₹71b had a median total CEO compensation of ₹11m. Accordingly, Deep Industries pays its CEO under the industry median. Moreover, Paras Savla also holds ₹2.3b worth of Deep Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 98% of total compensation out of all the companies we analyzed, while other remuneration made up 2% of the pie. Deep Industries sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Deep Industries Limited's Growth

Over the last three years, Deep Industries Limited has shrunk its earnings per share by 26% per year. Its revenue is up 45% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Deep Industries Limited Been A Good Investment?

Most shareholders would probably be pleased with Deep Industries Limited for providing a total return of 419% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Deep Industries that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.