Jindal Drilling & Industries Ltd

- As of the Q2 FY26 earnings call on 06 November 2025, there is no mention of any current or planned fundraising through debt or equity. - The company does not believe in borrowing and prefers to conserve cash for operational needs such as rig refurbishment. - Cash position has improved significantly, and the company has been increasing dividends rather than seeking external funds. - No plans for acquisitions or major expansions requiring external funding were indicated. - Management emphasized maintaining a strong cash balance and using internal accruals for growth and maintenance.

- The company is currently undertaking refurbishment of rigs, including Jindal Pioneer (expected to complete refurbishment by Q4 FY '26) and others like Discovery-I, Virtue-I, and Jindal Star. - Refurbishment costs for three rigs expected around INR 240-250 crores, amortized over contract duration. - No current plans for acquiring new rigs in FY '27 or FY '28. - The company is looking at opportunities within drilling segments such as directional drilling (recent tender won). - Exploring a few other drilling-related sectors but nothing concrete announced yet. - Strong cash position is being conserved to fund refurbishments and strategic needs; no borrowing planned currently. - Management will evaluate any international bids or opportunities where operational costs and prices justify investments.

- Future growth in sales and revenue is largely dependent on increased expenditure in the Indian oil and gas sector, as Jindal Drilling is a service provider dependent on sector activity. - Management expects order book visibility only as rigs get dehired and new tenders are floated by ONGC; the company will participate in all tenders to build the order book beyond FY '27. - The next few quarters are expected to be as good as previous ones, excluding impact from one-time other income. - ONGC is currently issuing fewer tenders than expected, a trend likely to continue for another year, which may affect volume growth. - The company is also exploring opportunities in directional drilling and other related segments to diversify revenue streams. - International market opportunities are being evaluated, though no concrete announcements have been made. - The company's growth visibility remains tied to ONGC’s finalization of exploration with BP and future oil and gas investments.

- Future growth depends heavily on increased expenditure in the oil and gas sector in India, as the company is a service provider to this industry (Page 13). - Management expects the next few quarters to be as good as previous ones, excluding the one-time other income from litigation (Page 17). - Operating margins are expected to stabilize around 35% going forward (Page 9). - The company is optimistic about maintaining or growing its order book as ONGC issues new tenders when rigs get dehired; bidding participation is assured (Page 12). - No concrete plans for acquisitions but exploring new opportunities within drilling segments (Page 16). - Earnings in Q2 FY26 saw a sharp increase due to a one-time INR 100 crore arbitration award, net profit excluding this was about INR 33 crore (Page 9). - EPS was INR 42 in Q2 FY26, significantly boosted by one-time income (Page 4).

- The company currently has a strong order book secured till FY '27, primarily from contracts with ONGC. - As of November 2025, 5 rigs (Discovery, Supreme, Virtue, Jindal Star, and Jindal Explorer) are operating with ONGC; Jindal Explorer recently secured a contract starting November 2025. - Jindal Pioneer rig is under refurbishment and the company plans to bid in an ONGC tender (due early December 2025) for its deployment. - Future order book additions depend on new tenders floated by ONGC as rigs complete existing contracts; the company intends to participate in all these. - There is uncertainty regarding international orders; currently, bidding is focused on domestic ONGC contracts. - Management expresses cautious optimism about maintaining or growing the order book but awaits clarity on ONGC’s future expenditure and tender outcomes.