💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 19.01% YoY to INR 4,756.55 million in FY25 from INR 3,996.65 million in FY24, primarily driven by offshore drilling services under long-term contracts.

Geographic Revenue Split

Not disclosed in exact percentages, but the Middle East is a major region of operation, previously accounting for a significant receivable write-off of INR 2,318.22 million.

Profitability Margins

Consolidated Operating Margin improved to 11.28% in FY25 from -62.96% in FY24. Net Profit Margin remained deeply negative at -321.67% due to massive finance costs and insolvency-related adjustments.

EBITDA Margin

Consolidated Operating Profit Margin reached 11.28% in FY25, a recovery from the previous year's negative margin, as EBIT became positive at INR 536.34 million.

Capital Expenditure

Not disclosed in available documents; however, the company is focusing on optimizing depreciated assets and diversifying into offshore wind farms.

Credit Rating & Borrowing

Liquidity is rated as 'Poor' by CARE Ratings due to low fleet utilization and debt defaults. Finance costs for FY25 included a INR 182 million translation loss due to adverse USD/INR exchange rates.

⚙️ Operational Drivers

Raw Materials

Fuel, spare parts, and drilling consumables (specific names not disclosed), representing the primary operational costs for offshore drilling rigs.

Import Sources

Middle East and international markets, where the company's offshore assets are deployed.

Capacity Expansion

Current capacity consists of 4 operational assets (offshore drilling rigs). Planned expansion includes entering the offshore wind farm sector to align with global energy transition trends.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, the company mitigates price volatility by securing assets under medium- and long-term contracts.

Manufacturing Efficiency

Low fleet utilization is a critical constraint, contributing to poor liquidity and delays in debt servicing.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through diversification into renewable energy sectors like offshore wind farms and forming strategic alliances to access new regions and technological capabilities.

Products & Services

Offshore drilling services for oil and gas exploration and production companies.

Brand Portfolio

Aban Offshore.

New Products/Services

Offshore wind farm services, aligning with global energy transition trends to access new markets.

Market Expansion

Targeting new regions and markets through strategic partnerships and alliances.

Market Share & Ranking

Largest private player in India in the offshore drilling industry and one of the largest globally.

Strategic Alliances

Partnerships with leading international firms to strengthen competitive edge and access new technological capabilities.

🌍 External Factors

Industry Trends

The industry is evolving toward renewable energy; Aban is positioning itself for the future by exploring offshore wind farm opportunities.

Competitive Landscape

Intense competition from international drilling firms; Aban mitigates this by fostering long-term partnerships and optimizing asset costs.

Competitive Moat

Moat is based on being the largest Indian private player with an optimized fleet of depreciated assets, but sustainability is currently threatened by insolvency.

Macro Economic Sensitivity

Highly sensitive to global crude oil prices and exploration budgets of E&P companies, which dictate demand for drilling rigs.

Consumer Behavior

Global shift in energy demand from fossil fuels to renewables is affecting long-term demand for traditional offshore drilling.

Geopolitical Risks

Over-reliance on specific regions like the Middle East, which led to a prior receivable write-off of INR 2,318.22 million.

⚖️ Regulatory & Governance

Industry Regulations

Governed by the Insolvency and Bankruptcy Code, 2016, following the NCLT order dated 01.09.2025 initiating the CIRP process.

Environmental Compliance

Stringent operational and safety protocols implemented to ensure adherence to quality, health, safety, and environmental (QHSE) standards.

Taxation Policy Impact

Not disclosed in available documents; deferred tax assets stood at INR 372.28 million as of September 2025.

Legal Contingencies

Corporate Insolvency Resolution Process (CIRP) initiated by NCLT on 01.09.2025 due to defaults; total consolidated liabilities involved are INR 2,85,189.99 million.

⚠️ Risk Analysis

Key Uncertainties

Material uncertainty exists regarding the company's ability to continue as a going concern, with the Singapore subsidiary reporting net liabilities of US$2.92 billion.

Geographic Concentration Risk

High concentration in the Middle East region, which has historically impacted receivables quality.

Third Party Dependencies

High dependency on financial creditors who have issued recall notices for borrowings due to covenant breaches.

Technology Obsolescence Risk

Risk of relying on an aging fleet of depreciated assets in a market requiring high technological capabilities.

Credit & Counterparty Risk

Consolidated trade receivables stood at INR 630.03 million as of September 2025, with a history of significant write-offs in the Middle East.