Jindal Drilling & Industries Ltd Q2 FY26 – ₹10,043 lakh Settlement Boost, ₹133 Cr PAT, 284% YoY Profit Spike, and a Deep-Sea Comeback Story
1. At a Glance
What do you call an oil driller that just hit a jackpot both underwater and in court? Jindal Drilling & Industries Ltd (JDIL). Fresh from an ONGC settlement worth ₹10,043 lakh and a blowout Q2 FY26 profit of ₹133 crore, this ₹1,695 crore market-cap smallcap is having its “revenge of the rigs” moment.
At ₹ 584 a share (Nov 4 close), the stock trades at a scandalously low P/E of 5.0 — cheaper than your neighbourhood petrol pump samosa — while the industry average P/E hovers around 19.4. ROCE 16.3 %, ROE 14.4 %, zero debt, and a 37.6 % operating margin — all scream “cash cow on a rig.”
Revenue for the latest quarter? ₹ 238 crore, up 38 % YoY, while PAT soared 284 %. The punchline? Those ONGC disputes that once gave ulcers now give cash.
So yes, JDIL is that one PSU-linked driller that learned how to sue profitably and drill profitably.
2. Introduction – Oil, Rigs, and the Jindal Comedy Universe
Once upon a time, offshore drilling meant rough seas, diesel fumes, and union strikes. Now, it also means spreadsheet drama, arbitration wins, and charter-rate gossip.
Jindal Drilling, part of the Dharam Pal Jindal Group, has been around long enough to remember when crude was ₹ 25 a barrel and auditors wore bell-bottoms. Today, it runs five rigs, mostly leased to ONGC — because in India, oil without ONGC is like biryani without rice.
After years of low-rent misery at $25,000/day, the company’s rigs are now re-priced to $88,000/day — that’s a 252 % pay raise, something no Indian employee has ever seen outside an exit interview.
And FY26 started with fireworks — ONGC settlement money raining like Diwali bonuses, arbitration wins (₹ 66.33 crore in April 2025), and yet another multi-year contract for “Jindal Explorer” at USD 35,138/day.
But amid all this excitement, one thing hasn’t changed: the Jindal family’s ability to run multiple companies across pipes, rigs, and family trees without ever pledging a single share.
3. Business Model – WTF Do They Even Do?
Imagine being the plumber of the oil world. JDIL drills, maintains, and logs what’s under the sea — basically the company goes where no influencer dares.
Here’s the breakdown:
Offshore Drilling: The money-spinner — mechanical boring into the seabed to extract oil & gas. Fancy rigs, scarier costs.
Directional / Horizontal Drilling: Because why drill straight when you can go sideways for better yield? (Also applies to balance-sheet creativity sometimes.)
Measurement-While-Drilling (MWD): Real-time tracking of direction, inclination, and temperature — basically GPS for drillers.
Mud Logging: The art of analysing rock cuttings to spot hydrocarbons — or as JDIL calls it, “smelling money through mud.”
FY24 revenue split proves who the boss is: Rigs 80 %, Directional Drilling 19 %, Mud Logging 1 %.
And yes, every single rig JDIL owns or subcontracts is deployed — mostly for ONGC, with one globe-trotting JV rig (“Jindal Pioneer”) chilling in Mexico via Saimexicana.
4. Financials Overview
Source table
Metric
Latest Qtr (Sep FY26)
YoY Qtr (Sep FY25)
Prev Qtr (Jun FY26)
YoY %
QoQ %
Revenue (₹ Cr)
238
172
254
+38.0 %
-6.3 %
EBITDA (₹ Cr)
93
31
107
+200 % +
-13.1 %
PAT (₹ Cr)
133
34
66
+284 %
+101 %
EPS (₹)
45.7
11.9
22.8
+284 %
+100 %
Annualised EPS ≈ ₹ 183 → P/E ≈ 3.2× at CMP ₹ 584. That’s “value investing on steroids.”
If EPS were a movie, it just turned from Sadak 2 into Jawan in one quarter.
5. Valuation Discussion – Fair Value Range Only
Let’s get nerdy:
Method 1 – P/E Multiples Industry avg ≈ 19.4×. JDIL’s current ≈ 5×. Assuming a conservative range of 8× – 12× FY26 EPS ₹ 116, → Fair Value Range = ₹ 930 – ₹ 1,390 per share.
