💰 Financial Performance

Revenue Growth by Segment

H1 FY26 revenue of INR 34.62 Cr decreased by 26.9% YoY from INR 47.36 Cr. Drill Pipe segment revenue fell 33.8% YoY to INR 16.31 Cr, while OCTG Services fell 28.2% YoY to INR 16.31 Cr. FY25 total revenue was INR 122.90 Cr, a 573% increase from INR 18.24 Cr in FY24.

Geographic Revenue Split

Not disclosed in available documents; however, the company primarily targets domestic tenders from ONGC and OIL.

Profitability Margins

Net Profit Margin for H1 FY26 was deeply negative with a Net Loss of INR 30.37 Cr on revenue of INR 34.62 Cr. Operating Margin for FY25 was negative with a loss before interest and tax of INR 23.59 Cr.

EBITDA Margin

EBITDA for H1 FY26 was INR 7.43 Cr, representing a 21.4% margin on revenue of INR 34.62 Cr.

Capital Expenditure

Historical CAPEX for H1 FY26 was INR 4.06 Cr for Property, Plant, and Equipment. PPE value decreased from INR 306.53 Cr in March 2025 to INR 275.65 Cr in September 2025 due to depreciation of INR 34.72 Cr.

Credit Rating & Borrowing

Credit Rating is [ICRA]D (Default) under the 'Issuer Not Cooperating' category for bank facilities totaling INR 187.00 Cr (INR 125 Cr fund-based and INR 62 Cr non-fund based).

⚙️ Operational Drivers

Raw Materials

Steel tubulars and raw steel for processing into OCTG and Drill Pipes; cost of materials consumed in H1 FY26 was INR 3.23 Cr, representing 9.3% of total revenue.

Import Sources

Not specifically disclosed, but the company is working to comply with the Steel Policy requiring 35% domestic value addition.

Key Suppliers

Not specifically named; however, the company is heavily dependent on technical qualifications for tenders from ONGC and OIL.

Capacity Expansion

Current capacity is not disclosed in MT, but the company reports all plant and machinery are in fully functional status and executing orders on hand.

Raw Material Costs

Raw material costs for H1 FY26 were INR 3.23 Cr, a 73.5% decrease from INR 12.20 Cr in H1 FY25, reflecting lower production volumes.

Manufacturing Efficiency

Plant and machinery are fully functional; however, the company reported a Net Loss of INR 30.37 Cr in H1 FY26, indicating low efficiency or high fixed costs relative to current volumes.

Logistics & Distribution

Selling and Distribution expenses were not separately disclosed in the H1 FY26 results; other expenses totaled INR 11.61 Cr (33.5% of revenue).

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Diversification into Defense, Aerospace, Power, Railways, and Critical Engineering components to reduce single-industry focus. The company is also bidding for ONGC/OIL tenders and seeking INR 25 Cr in non-fund based working capital limits to support bid bonds and raw material procurement.

Products & Services

Drill Pipe, Allied Products, Oil Country Tubular Goods (Casing, Tubing), and associated services.

Brand Portfolio

Oil Country Tubular Limited (OCTL).

New Products/Services

Diversification into Defense and Aerospace components; expected revenue contribution % not disclosed.

Market Expansion

Targeting multi-industrial sectors beyond Oil & Gas to bring steady growth and stability.

Market Share & Ranking

Not disclosed; however, Indian demand for tubulars is estimated at over 100,000 MT.

🌍 External Factors

Industry Trends

The industry is evolving toward domestic sourcing (35% value addition). Crude oil price recovery is driving a requirement for over 100,000 MT of tubulars in India, positioning the company for growth in 'sunrise' sectors.

Competitive Landscape

Competes for tenders against other OCTG manufacturers; market dynamics are driven by global crude prices and government procurement policies.

Competitive Moat

Moat is based on technical qualification for specialized products for ONGC/OIL and fully functional specialized plant machinery. Sustainability depends on maintaining these qualifications and diversifying into Defense/Aerospace.

Macro Economic Sensitivity

Highly sensitive to crude oil prices; rising prices indicate increased exploration and demand for tubulars.

Consumer Behavior

Demand is driven by industrial/corporate exploration budgets rather than individual consumer behavior.

Geopolitical Risks

Trade barriers and domestic procurement policies like the 'Melt & Pour' condition in the Steel Policy affect sourcing strategies.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Indian Steel Policy ('Melt & Pour' condition) requiring 35% domestic value addition; adherence to ISO 9001:2015 standards.

Environmental Compliance

Not specifically disclosed in INR.

Taxation Policy Impact

Tax expenses for H1 FY26 were INR 2.32 Cr; the company reported a deferred tax liability of INR 23.03 Cr.

Legal Contingencies

Not disclosed in available documents; however, the company issued a corrigendum to correct significant typographical errors in its reported reserves and segment results.

⚠️ Risk Analysis

Key Uncertainties

Dependence on large tenders from a few clients (ONGC/OIL) and the volatility of crude oil prices affecting exploration demand.

Geographic Concentration Risk

Primarily focused on the Indian market for PSU tenders.

Third Party Dependencies

High dependency on technical qualification from major oil companies to participate in tenders.

Technology Obsolescence Risk

The company is upgrading to meet multi-industrial standards for Defense and Aerospace to mitigate sector-specific obsolescence.

Credit & Counterparty Risk

Trade receivables stood at INR 3.05 Cr as of September 2025, a significant decrease from INR 19.24 Cr in March 2025, indicating improved collections or lower sales.