Jindal Drilling And Industries LimitedUnclassifiedJINDRILL
Q1 FY27 earnings callJindal Drilling And Industries Limited
The quarter saw a new INR-denominated rig contract, but H2 revenue will decline as three rigs go off-hire for refurbishment, with management focused on redeploying them domestically.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Order Book | INR1,310 crores | — | |
| New Contract Day Rate | INR45.83 lakhs | — |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹239.46 Cr+30.8% YoY+38.8% QoQ | ₹65.95 Cr+106.5% YoY+91.3% QoQ | ₹22.76+106.5% YoY+91.3% QoQ |
| Q2 FY25 | ₹172.50 Cr+21.4% YoY+0.9% QoQ | ₹34.47 Cr+55.8% YoY-21.4% QoQ | ₹11.90+56% YoY-21.4% QoQ |
| Q1 FY25 | ₹170.98 Cr+82% YoY-13.6% QoQ | ₹43.86 Cr+263.4% YoYTurned profitable QoQ | ₹15.14+263.1% YoYTurned positive QoQ |
| Q4 FY24 | ₹197.92 Cr+91.7% YoY+8.1% QoQ | ₹-15.00 CrTurned loss-making YoYTurned loss-making QoQ | ₹-5.18Turned negative YoYTurned negative QoQ |
| Q3 FY24 | ₹183.06 Cr+32.4% YoY+28.8% QoQ | ₹31.94 Cr+28.4% YoY+44.4% QoQ | ₹11.02+28.4% YoY+44.4% QoQ |
TL;DR
- Order book stands at INR1,310 crores.
- Received a new contract for one rig at a fixed day rate of ~INR45 lakhs, to be deployed in October 2026.
- Three rigs are expected to be dehired within the current financial year, leading to a revenue decline in H2.
- Refurbishment cost per rig is estimated at INR90-110 crores.
- Management is confident about redeploying the three dehired rigs but cites challenges in the redeployment environment.
Said on the call
“revenue will decline in the second half of this financial year.”
From the Q&A
| Topic | What management said |
|---|---|
| Rig Redeployment & H2 Impact | Three rigs are due for dehire in late 2026, requiring 4-6 months of non-revenue generating refurbishment; management is confident in redeployment but expects H2 revenue to decline, though EBITDA may not decline proportionally due to mix of rig rates. |
| Refurbishment Costs | Estimated refurbishment cost per rig is between INR90 crores to INR110 crores. |
| ONGC Legal Dispute | A long-running legal dispute with ONGC involves a receivable of ~INR163 crores; management believes the possibility of losing and having to repay is remote. |
| JV Loss | Loss in a joint venture this quarter is due to refurbishment expenses for the Jindal Pioneer rig. |
| Contract Denomination & Market Outlook | The new contract is in INR; management cannot predict if future tenders will be in USD or INR. Outlook is optimistic due to potential increased drilling activity but day rates remain pressured by customer willingness to pay. |
| International Deployment | Focus is on domestic redeployment; international opportunities are considered but come with counterparty and country risks. |
Guidance
- Expect the newly contracted rig to be deployed in October 2026.
- Target a blended EBITDA margin of 35%.
- Expect day rates to improve but acknowledge customer pressure.
- Believe the three dehired rigs should be rehired, partly due to the Samudra Manthan exercise.
Source
Summary written from the transcript filed by Jindal Drilling And Industries Limited for the call held on 10 Aug 2026; published 18 Aug 2026, 20:25 IST.