Jindal Drilling & Industries Ltd Q4 FY26 Earnings Analysis

- The company expects stable EBITDA around INR 350 crores for the current and next year, indicating steady revenue. - Upcoming tenders from ONGC will provide opportunities to redeploy rigs and secure new contracts, contributing to revenue growth. - The Jindal Pioneer rig, currently under refurbishment, is expected to start generating revenue in the upcoming months. - Three rigs getting dehired in 2026 will undergo refurbishment and be bid for new contracts, with revenue impact dependent on market rates. - Company is focusing on acquiring longer-term contracts (3-5 years) primarily in India, with selective international deployments expanding revenue sources. - Non-rig services like mud logging and directional drilling are growing segments but scaling may not require large capital. - Overall, growth is expected to be steady but subject to fluctuations in rig rates and tender success.

- The company expects EBITDA of around INR 350 crores in the current year and a similar level in the next year (FY27). - Growth upside from deployment of rigs currently under refurbishment, such as Jindal Pioneer, expected soon. - Earnings from 3 rigs getting dehired in FY27 uncertain; rates are market-driven and volatile. - Management is focusing on redeploying rigs as and when contracts end to sustain revenues. - No speculative comments on oil cycles; company aims to maintain strong operational performance. - Cash is being conserved for rig refurbishment and vendor dues (~$35 million). - Dividend doubled recently indicating shareholder returns focus despite cash conservation. - Company actively bidding for new ONGC tenders and looking at international rig deployment cautiously. - Overall, earnings growth expected to be stable with upside tied to contract renewals and successful rig redeployment.

- No new capex or strategic investments are currently planned. - The company is focusing on refurbishing 3 rigs that will be dehired in FY 2027. - Refurbishment costs per rig are estimated between INR 50 to 100 crores and are amortized over the contract duration. - Cash is being conserved primarily for these refurbishment exercises and to settle dues related to the Jindal Pioneer rig acquisition (~$35 million). - No concrete plans for organic growth or acquisitions in the offshore drilling or rig services space this year. - Exploration of international contracts is ongoing, but no large capital deployment for new rigs abroad is mentioned. - No updates on acquiring additional rigs from associated companies like Maharashtra Seamless.

- There is no indication in the transcript of any current or planned fundraising through debt or equity. - The company is cash rich and debt free as mentioned by Kaushal Bengani. - Cash is being conserved primarily for upcoming rig refurbishments and vendor dues (~$35 million). - No mention of new capital raising or buybacks beyond doubling the dividend in response to shareholder concerns. - Management is focused on operational priorities like rig redeployment and refurbishment rather than fundraising. - No updates on acquiring more rigs or assets that would require capital infusion were provided. - Overall, the company appears self-sufficient financially and is not pursuing external debt or equity raising at this time.

- The order book for Q4 is mentioned as INR 237 crores, indicating the expected revenue trajectory. (Page 5) - The company is actively bidding in ONGC tenders to rehire rigs that are being dehired in the current year. (Page 6) - A recent tender for 4 rigs includes Jindal Pioneer being brought back into India. More tenders from ONGC are expected in the coming weeks or months. (Page 6) - The management is focused on securing contracts as rigs become available, indicating an ongoing order pipeline tied to rig deployment cycles. (Page 6)