Jindal Drilling & Industries Ltd Q2 FY26 Earnings Analysis

Future growth expectations for Jindal Drilling & Industries Limited in sales/revenue/volumes are as follows: - FY '26 revenue expected to exceed INR 925 crores, up from INR 884 crores in FY '25. - EBITDA for FY '26 projected in the range of INR 360 to 380 crores. - FY '27 revenue anticipated around INR 900 crores, with EBITDA again in the INR 360-380 crores range. - Conservative projections made assuming Jindal Pioneer deployed at USD 40,000 per day; actual rates expected to be higher. - Growth driven by increasing rig counts as ONGC and India aim to boost domestic oil production. - Plans to invest in acquiring more rigs when tenders arise, both with ONGC and international operators. - Backup plans for rig deployment include discussions with various Indian and international companies. - Market expected to turn bullish with higher demand and rig utilization.

- FY '26 projections: Revenue expected > INR 925 crores; EBITDA between INR 360-380 crores. - FY '27 projections: Revenue around INR 900 crores; EBITDA again INR 360-380 crores, assuming conservative deployment of the Jindal Pioneer rig at USD 40,000/day. - Rates expected to be higher than conservative estimates, potentially increasing profitability beyond projections. - Cash PAT expected to almost mirror EBITDA due to very low interest outgo and steady depreciation rates. - EPS showed a rise from INR 18 to INR 19 per share in Q1 FY '26; with improved operational profitability, EPS is likely to sustain or grow. - Management focused on expanding rig fleet depending on ONGC tenders and market opportunities to boost earnings further. - Conservative estimates indicate stable profitability with potential upside as rig day rates improve and new contracts are won.

- Future capital investment plans depend largely on ONGC tenders, which have been sluggish recently. - The company is open to acquiring more rigs when ONGC tenders arise and opportunities present themselves. - There is no immediate plan for a new acquisition beyond the recently acquired rig Jindal Pioneer. - The company expressed interest in increasing its rig fleet when tender opportunities arise and suitable rigs are available internationally. - Regarding strategic diversification, there are some thoughts but no concrete plans to disclose currently. - They are open to acquiring rigs either by purchase or bareboat charter, depending on feasibility. - No plans to consolidate rigs from sister concerns into the balance sheet currently, but it is preferred eventually without specific timelines.

- No explicit mention of any immediate plans for new fundraising through equity or debt. - Company currently has a net cash position of INR112 crores and strong operational profitability. - Management prefers to acquire rigs either through purchase or bareboat charter, using available liquidity or debt if favorable. - Interest costs have declined significantly, indicating existing debt is reducing. - No specific timeline or plan disclosed for consolidating rigs or raising capital via equity. - The company is cautious and conservative in financial projections, focusing on operational surplus retention for refurbishment expenditure. - Management is open to raising debt at good rates if opportunities to acquire rigs arise. - No stated intention to invest operational surplus in equity mutual funds; preference is to retain cash for business needs.

- Jindal Drilling & Industries Limited currently has a total order book detailed rig-wise and year-wise for easy amortization understanding. - They have 6 rigs in their fleet; 4 operating with ONGC, 1 under refurbishment (Jindal Explorer), and 1 engaged overseas. - Recent tenders by ONGC have been sluggish or delayed due to ongoing work with BP, expected to complete this year with new plans for 2026. - Another ONGC tender expected by September 2025. - Jindal Pioneer rig is planned to be bid in upcoming ONGC contracts and the company is also open to contracts with international companies. - No specific numeric figures of the order book or pending orders are provided in the transcript. This reflects a moderate but cautious growth outlook tied closely to ONGC tenders and demand in offshore drilling.