Any current/future new fundraising through debt or equity?

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

Any current/future capex/capital investment/strategic investment?

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 o

Future growth expectations in earnings/operating earnings/profits/EPS?

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

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Jindal Drilling & Industries LtdQ2 FY25Oil

Jindal Drilling & Industries Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹566P/E: 7.1Market Cap: ₹1.7K CrSector: Oil

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 4

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.

Margin guidance

Category 3

→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.

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Fundraise plans

Yes

→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.

Order book

- 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.

Capex plans

Yes

→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.

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