Jindal Drilling Secures ₹1,369 Crore Order Book, Reports Strong Q2 Results

Jindal Drilling & Industries Ltd has announced a significant boost to its order book and reported robust financial results for the second quarter, showcasing the company's strong position in the offshore drilling sector.

Order Book Expansion

Jindal Drilling has secured a substantial order book of ₹1,369 crore through long-term contracts with Oil and Natural Gas Corporation (ONGC). This development positions the company for capacity expansion and improved margin visibility in offshore drilling operations.

Operational Update

The company is currently operating four rigs and refurbishing one rig in the UAE, indicating active efforts to enhance its operational capabilities. This strategic move aligns with the company's focus on strengthening its presence in the offshore drilling market.

Financial Performance Highlights

Jindal Drilling's Q2 financial results reflect significant growth and improved profitability:

Metric	Q2 Current	Q2 Previous	YoY Change
Total Revenue	₹347.00	₹183.00	89.6% increase
EBITDA	₹93.00	₹31.00	200% increase
EBITDA Margin	39%	18%	21 percentage points improvement
Net Profit	₹121.00	₹16.00	656.3% increase
EPS	₹42.00	₹5.00	740% increase

Key Financial Developments

Revenue Growth: The company's total revenue for Q2 stood at ₹347.00 crore, a substantial increase from ₹183.00 crore in the same quarter last year.
Profitability Surge: Net profit for Q2 reached ₹121.00 crore, compared to ₹16.00 crore in the previous year's Q2, marking a significant 656.3% year-on-year growth.
EBITDA Performance: EBITDA for Q2 was ₹93.00 crore, with an improved EBITDA margin of 39%, up from 18% in the corresponding quarter of the previous year.
Earnings Per Share: The company reported an EPS of ₹42.00 for Q2, a substantial increase from ₹5.00 in the previous year's Q2.

Balance Sheet Strength

As of the latest reporting date, Jindal Drilling reported:

Total assets of ₹2,20,803.00 lakhs
A strong equity position with total equity of ₹1,48,072.00 lakhs
Reduced borrowings, with gross debt decreasing to ₹104.00 crore from ₹139.00 crore in the previous reporting period

Order Book Details

The company's order book is distributed across its fleet of rigs:

Rig Name	Order Book Value (₹ crore)
Discovery-I	95.00
Jindal Supreme	559.00
Virtue-I	273.00
Jindal Star	114.00
Jindal Explorer	328.00
Total	1,369.00

This order book provides visibility for operations, with contracts spread across multiple years.

Outlook

With a strong order book, improved financial performance, and strategic operational moves, Jindal Drilling & Industries Ltd appears well-positioned for growth in the offshore drilling sector. The company's focus on long-term contracts with ONGC and its efforts to enhance operational capabilities suggest a positive outlook for the coming years.

Investors and market watchers may find Jindal Drilling's recent performance and future prospects noteworthy, especially given the significant improvements in revenue, profitability, and operational metrics.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.66%	+3.53%	-0.53%	-5.99%	-17.66%	+738.98%

Jindal Drilling & Industries Limited has reported a stellar performance for the second quarter, with significant growth in revenue and profitability. The company's financial results, approved by its Board of Directors on November 4, showcase a remarkable turnaround compared to the same period last year.

Financial Highlights

Particulars (in Rupees)	Q2 FY26	Q2 FY25	YoY Change
Net Income from Operations	2.38 billion	1.72 billion	+38.37%
Net Profit	1.27 billion	158.40 million	+702.40%
EBITDA	925.70 million	312.40 million	+196.32%
EBITDA Margin	38.89%	18.11%	+20.78 percentage points

Jindal Drilling has demonstrated robust growth across key financial metrics. The company's net income from operations increased to 2.38 billion rupees, marking a 38.37% rise from the previous year. More impressively, the net profit surged to 1.27 billion rupees, representing a 702.40% increase year-over-year.

Operational Performance

The company's operational efficiency is evident in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) performance. EBITDA rose to 925.70 million rupees, up by 196.32% compared to the same quarter last year. This substantial increase in EBITDA indicates strong operational management and cost control measures implemented by the company.

Margin Expansion

Jindal Drilling's EBITDA margin expanded significantly, reaching 38.89% in Q2 FY26, up from 18.11% in the corresponding quarter of the previous year. This 20.78 percentage point improvement in margin reflects the company's ability to enhance profitability while growing its revenue base.

Other Notable Developments

The company's other income saw a substantial increase, which includes a significant one-time gain. As per the notes to the financial results, Jindal Drilling received 1004.30 million rupees related to an old ONGC receivable litigation that was concluded in Q2 FY26. This amount, stemming from an arbitration award and a subsequent favorable order from the Bombay High Court, comprises 664.80 million rupees towards the outstanding amount and 1004.30 million rupees towards interest and foreign exchange fluctuation.

Market Position

Jindal Drilling & Industries Limited continues to focus on its core business of "Drilling and Related Services." The company's strong performance in this segment underscores its solid position in the market and its ability to capitalize on opportunities in the drilling industry.

Conclusion

The impressive Q2 results demonstrate Jindal Drilling's resilience and growth potential. With a significant boost in profitability and operational efficiency, the company appears well-positioned to capitalize on future opportunities in the drilling sector. Investors and market watchers will likely keep a close eye on Jindal Drilling's performance in the coming quarters to see if this strong momentum can be sustained.