💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 34% YoY to INR 831 Cr in FY25, driven by a 12% increase in rig deployment days and improved blended charter rates. Q1 FY26 revenue grew 40% YoY to INR 254 Cr following the acquisition of the 'Jindal Pioneer' rig.

Geographic Revenue Split

The company primarily operates in the Mumbai Offshore (Bombay High) region for offshore drilling, with onshore operations for mud-logging and directional drilling services across India; specific % split by region is not disclosed.

Profitability Margins

Net Profit Margin was 22.76% in FY25, a slight decline from 24.58% in FY24. Q2 FY26 PAT surged 116% QoQ to INR 121 Cr from INR 56 Cr in Q1 FY26, primarily due to a one-time favorable litigation settlement.

EBITDA Margin

Operating Profit Margin stood at 32.34% in FY25, down 5.11% from 37.46% in FY24. EBITDA for Q2 FY26 decreased 13% to INR 93 Cr from INR 107 Cr in Q1 FY26 due to the 'Jindal Explorer' rig being idle and forex fluctuations.

Capital Expenditure

The company undertook a major capex of ~INR 620 Cr for the acquisition of the 'Jindal Pioneer' rig, funded by adjusting INR 250 Cr in loans to group companies and the remainder through internal accruals.

Credit Rating & Borrowing

CRISIL maintains a 'Stable' outlook with healthy debt protection metrics; interest coverage ratio was 12.58 in FY25. Debt-to-equity remains low at 0.05 as of March 2025.

⚙️ Operational Drivers

Raw Materials

The business is service-oriented; primary costs include rig refurbishment materials, spare parts for drilling equipment, and fuel/energy for operations, though specific % of total cost per item is not disclosed.

Import Sources

Refurbishment activities for major assets like 'Jindal Pioneer' are conducted in the UAE; specialized drilling components are sourced globally to meet offshore standards.

Key Suppliers

Key suppliers include global oilfield service providers and group companies for rig leasing; specific vendor names for consumables are not disclosed.

Capacity Expansion

Current fleet consists of 5-6 offshore jack-up rigs (including Jindal Pioneer, Jindal Supreme, Virtue-I, and Jindal Explorer). Jindal Pioneer is expected to conclude refurbishment in Q4 FY26.

Raw Material Costs

Operating expenses are impacted by rig maintenance and refurbishment; 'Jindal Explorer' refurbishment and idle time contributed to a margin dip to 39% in recent quarters.

Manufacturing Efficiency

Efficiency is measured by rig deployment days, which grew 12% in FY25. Management targets a 35% operating margin through high operational uptime.

📈 Strategic Growth

Expected Growth Rate

9-10%

Growth Strategy

Growth will be driven by the full-quarter operations of the newly acquired 'Jindal Pioneer' rig and the re-deployment of 'Jindal Explorer' following refurbishment. The company is also focusing on unwinding group company exposures to improve RoCE to 17-18%.

Products & Services

Offshore jack-up drilling services, directional drilling, mud logging, and allied services for oil and gas exploration.

Brand Portfolio

Jindal Drilling, DP Jindal Group.

New Products/Services

Expansion of the owned rig fleet through the acquisition of 'Jindal Pioneer' to reduce reliance on leased assets and improve long-term margins.

Market Expansion

Continued focus on the Mumbai Offshore region with ONGC, while exploring deeper integration into directional drilling and mud logging for onshore sites.

Market Share & Ranking

Leading Indian company in offshore drilling and allied services; specific market share % not disclosed.

Strategic Alliances

Part of the DP Jindal Group, receiving managerial and financial support from Maharashtra Seamless Ltd (MSL) and Jindal Pipes Ltd (JPL).

🌍 External Factors

Industry Trends

The industry is seeing a temporary dip in charter rates (USD 40k-50k range) with no major fresh investments in jack-up rigs globally, leading to a tightening supply-demand balance over the long term.

Competitive Landscape

Competes with global offshore drilling contractors; however, domestic preference and established relationships with ONGC provide a competitive edge.

Competitive Moat

Moat is built on a 35-year track record, rigs optimized for Indian conditions, and a 30-year relationship with ONGC, providing high barriers to entry for new domestic players.

Macro Economic Sensitivity

Highly sensitive to global crude oil prices, which dictate the E&P spending of major oil companies and subsequent demand for drilling rigs.

Consumer Behavior

Demand is driven by upstream oil and gas companies' (like ONGC) requirement to maintain production levels to meet national energy security goals.

Geopolitical Risks

Fluctuations in international rig markets and global oil supply chains impact charter rates and refurbishment timelines in the Middle East.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to stringent safety and environmental norms for offshore drilling; compliance with the Companies Act 2013 and SEBI Listing Obligations.

Environmental Compliance

Strategic focus on sustainability and safety to maintain 'contractor of choice' status; specific ESG spend not disclosed.

Taxation Policy Impact

Effective tax rate is applied to profits; specific fiscal policy impacts are not detailed beyond standard corporate tax obligations.

Legal Contingencies

The company recently won a favorable outcome in a long-standing litigation, resulting in a significant PAT boost in Q2 FY26. It previously received INR 160 Cr from ONGC following a Supreme Court interim order regarding a past dispute.

⚠️ Risk Analysis

Key Uncertainties

Volatility in crude oil prices could lead to a 20-30% fluctuation in charter rates during contract renewals, impacting future revenue visibility.

Geographic Concentration Risk

High concentration in the Mumbai Offshore region, making the company vulnerable to regional operational disruptions.

Third Party Dependencies

Heavy reliance on ONGC for revenue; any change in ONGC's procurement strategy or drilling budget would significantly impact JDIL.

Technology Obsolescence Risk

Risk of rigs becoming technologically outdated compared to newer high-specification international jack-ups; mitigated by regular refurbishments.

Credit & Counterparty Risk

Exposure to group companies via loans (INR 276 Cr in FY24) is a key monitorable, though being reduced through asset acquisitions like 'Jindal Pioneer'.