Jindal Drilling Reports Q3 EBITDA Decline, Releases Earnings Call Transcript
Jindal Drilling & Industries experienced Q3 EBITDA decline to ₹717 million with margins compressing to 29.68% from 33.69% year-over-year. The company reversed ₹100 crores Other Income due to ONGC litigation moving to Supreme Court, while maintaining operational stability with 3 rigs scheduled for contract renewal and expected annual EBITDA of ₹350 crores.
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Jindal Drilling & Industries has announced its Q3 financial results, revealing a decline in key operational metrics compared to the same period in the previous year. The company has also released the transcript of its earnings conference call held on 30 January 2026, providing detailed insights into its performance and future outlook.
Financial Performance Overview
The company's Q3 results show a contraction in both absolute EBITDA figures and margin percentages. The operational performance indicates pressure on the company's ability to generate earnings before interest, taxes, depreciation, and amortization.
| Metric: | Q3 Current Year | Q3 Previous Year | Change |
|---|---|---|---|
| EBITDA: | ₹717 million | ₹807 million | Decline |
| EBITDA Margin: | 29.68% | 33.69% | -4.01 percentage points |
Management Commentary on Other Income Impact
During the earnings conference call, Deputy General Manager Kaushal Bengani explained that the operational performance remained broadly in line with earlier communications. However, significant variations occurred in the Other Income line item due to a legal matter with ONGC.
The company had previously recorded a gain of around ₹100 crores on an original receivable of ₹66 crores following a favourable Bombay High Court ruling. However, since ONGC appealed this decision to the Supreme Court, making the matter sub-judice again, the auditors and Board decided to reverse the previously booked income in Q3.
Fleet Operations and Future Contracts
Managing Director Raghav Jindal provided updates on the company's rig operations during the earnings call. Three rigs are scheduled for contract completion during the current financial year, with refurbishment costs expected to range between ₹50 crores to ₹100 crores per rig.
| Parameter: | Details |
|---|---|
| Rigs Ending Contracts: | 3 rigs |
| Refurbishment Cost: | ₹50-100 crores per rig |
| Vendor Dues: | $35 million approximately |
| Expected Annual EBITDA: | ₹350 crores |
Market Outlook and Tender Activity
The management expressed optimism about upcoming ONGC tenders, with expectations of multiple tenders for 4 rigs in the near term. The company is positioning Jindal Pioneer for redeployment following its refurbishment phase, which concluded after the rig's contract ended in October 2025.
Jindal noted positive global trends, particularly Saudi Aramco's resumption of previously terminated contracts, which should support international rig demand. The company continues to explore international deployment opportunities while prioritizing longer-term contracts of 3-5 years in the Indian market.
Regulatory Compliance
Pursuant to Regulation 30 of SEBI Listing Obligations, the company filed the earnings call transcript with stock exchanges on 02 February 2026. The transcript is available on the company's website, providing stakeholders with comprehensive details of the Q3 performance discussion.
Historical Stock Returns for Jindal Drilling & Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -9.49% | +19.77% | +11.17% | -10.98% | -37.34% | +447.40% |
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