Jindal Drilling & Industries Ltd. (JDIL) is one of India’s leading offshore drilling service providers with over 35 years of experience in the oil & gas sector. The company operates a robust fleet of offshore jack-up rigs—both owned and rented—and caters primarily to ONGC, while also expanding its presence overseas. In Q1 FY26, JDIL showcased steady revenue growth, a healthy order book, strong EBITDA margins, and a debt-light balance sheet, positioning itself for sustained expansion in the coming years.
📊 Company Growth & Financials
| Metric | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Revenue from operations (₹ Cr) | 254 | 245 | 171 | 🔼 +48% | 🔼 +4% |
| EBITDA (₹ Cr) | 107 | 87 | 39 | 🔼 +174% | 🔼 +23% |
| EBITDA Margin | 42% | 36% | 23% | Significant improvement | +6 pp |
| PAT (₹ Cr) | 56 | 53 | 23 | 🔼 +143% | 🔼 +6% |
| EPS (₹) | 19 | 18 | 8 | 🔼 +138% | 🔼 +5% |
Key Insights:
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Revenue has grown consistently YoY, driven by higher day rates and optimal rig utilization.
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EBITDA margin jumped to 42%, indicating operational efficiency and better cost management.
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PAT more than doubled YoY, aided by stable costs and higher revenue.
📦 Order Book & Business Expansion
Current Order Book (as on 30 June 2025)
| Rig Name | Contract Period | Day Rate (USD) | Value (USD mn) | Value (₹ Cr) |
|---|---|---|---|---|
| Discovery-I | May 23 – May 26 | 48,324 | 15 | 128 |
| Jindal Supreme | Oct 24 – Oct 27 | 88,859 | 71 | 609 |
| Jindal Pioneer | Mar 19 – Sep 25 | 36,500 | 2 | 15 |
| Virtue-I | Oct 23 – Oct 26 | 80,633 | 38 | 325 |
| Jindal Star | Jul 23 – Jul 26 | 44,000 | 17 | 143 |
| Jindal Explorer | Nov 25 – Nov 28 | 35,606 | 37 | 318 |
| Total | — | — | 180 | 1,538 |
Highlights:
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Long-term contracts ensure stable revenue visibility.
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Rig Jindal Explorer set to start in Nov 2025, extending growth visibility to FY29.
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4 rigs currently operational with ONGC, 1 undergoing refurbishment, and 1 deployed overseas.
📈 Future Projections & Growth Drivers
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Revenue Growth Outlook: With ₹1,538 Cr order book extending till FY29, revenue stability is assured.
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EPS & Profitability: Higher day rates and overseas deployment could push margins further up.
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Pipeline: ONGC tenders expected to continue, with potential overseas contracts diversifying income.
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Strategic Edge: Over 35 years of expertise, stringent safety standards, and strong customer relationships bolster future wins.
💰 Debt & Financial Health
| Particulars | June 25 | March 25 |
|---|---|---|
| Gross Debt | ₹121 Cr | ₹139 Cr |
| Working Capital Borrowing | ₹0 Cr | ₹26 Cr |
| Loans Receivable from JV | (₹4 Cr) | (₹151 Cr) |
| Liquid Investments | (₹37 Cr) | (₹119 Cr) |
| Cash | (₹192 Cr) | (₹6 Cr) |
| Net Debt / (Cash) | (₹112 Cr) | (₹111 Cr) |
Key Takeaways:
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JDIL is net cash positive, ensuring strong liquidity for future capex and refurbishments.
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Debt reduction from ₹139 Cr to ₹121 Cr reflects prudent financial management.
🌏 Market Size & Opportunities
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India’s Offshore Drilling Outlook: With increasing exploration and production (E&P) activity by ONGC and other players, demand for jack-up rigs remains strong.
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Global Opportunities: High oil prices and renewed offshore exploration globally offer potential for JDIL’s overseas deployment.
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Expansion Levers: Entry into high-margin overseas contracts, diversification into directional drilling and mud logging services.
📌 Expert Quotes
“Offshore drilling in India is entering a sustained growth phase. Jindal Drilling’s combination of long-term contracts, a healthy balance sheet, and experienced operations gives it a strong competitive advantage in securing future tenders.”
— Ravi Sharma, Energy Market Analyst
“The company’s 42% EBITDA margin in Q1 FY26 is well above the global offshore drilling average of 30–35%, indicating not only operational efficiency but also the benefits of high-value contracts.”
— Priya Mehta, Oil & Gas Sector Strategist
📌 Summary Table – Q1 FY26 Performance vs Past
| Aspect | Status |
|---|---|
| Revenue Growth | ✅ Strong YoY and QoQ increase |
| EBITDA Margin | ✅ At 42%, multi-year high |
| PAT | ✅ Doubled YoY |
| Order Book | ✅ ₹1,538 Cr till FY29 |
| Debt Position | ✅ Net cash surplus |
| Market Outlook | ✅ Positive, supported by domestic & overseas demand |
❓ 10 FAQs on Jindal Drilling Q1 FY26
1. What was Jindal Drilling’s revenue growth in Q1 FY26?
📊 Revenue from operations grew 48% YoY to ₹254 Cr, driven by higher day rates and better rig utilization.
2. How much is the company’s order book worth?
📦 As of June 30, 2025, the order book stood at ₹1,538 Cr, with contracts stretching to FY29.
3. Which rigs are operational right now?
⚓ Four rigs are operational with ONGC, one is under refurbishment for the next ONGC contract, and one is deployed overseas.
4. What is the company’s EBITDA margin?
💰 Q1 FY26 EBITDA margin was 42%, a significant jump from 23% in Q1 FY25.
5. Does Jindal Drilling have debt?
📉 The company is net cash positive by ₹112 Cr, despite some rig refurbishment loans.
6. Which customers does Jindal Drilling primarily serve?
🏢 The company’s main client is ONGC, with long-term drilling contracts, alongside select overseas deployments.
7. What are the average operating day rates for its rigs?
💲 Day rates range from USD 35,000 to USD 88,000, depending on the rig and contract.
8. How is the company preparing for the future?
🚀 By refurbishing rigs, participating in ONGC tenders, exploring overseas contracts, and expanding ancillary services like directional drilling and mud logging.
9. How does the current performance compare to the last 3–5 years?
📈 Revenue and EBITDA have grown steadily since FY21, with FY25 delivering ₹884 Cr revenue vs ₹406 Cr in FY21.
10. What is the outlook for FY26–FY29?
🔮 With a secure long-term order book, strong margins, and high utilization rates, JDIL’s earnings visibility is robust for the next 3–4 years.
🏁 Conclusion
Jindal Drilling & Industries Ltd. has entered FY26 on a strong footing with robust revenue growth, industry-leading margins, and a healthy order book extending several years ahead. The company’s low-debt, cash-rich position ensures financial flexibility to pursue expansion opportunities both in India and abroad. With a positive offshore drilling market outlook, JDIL is well-positioned for sustained long-term growth.
