1. At a Glance – The Offshore Soap Opera Nobody Asked For
Jindal Drilling is what happens when crude oil, jack-up rigs, ONGC contracts, and Supreme Court footnotes all decide to party in one P&L. Market cap sits around ₹1,386 Cr, the stock is trading near ₹478, and the P/E is a suspiciously low 5.86—the kind that makes value investors feel smart and nervous at the same time.
Operationally, things look dreamy: 36.6% operating margins, ROCE ~16%, debt-to-equity just 0.07, and rigs locked into higher charter rates that would make FY19 look like a budget airline ticket. Financially, FY25 (TTM) shows ₹979 Cr revenue and ₹237 Cr PAT, but Q3 FY26 decided to ruin the mood with a ₹33 Cr loss, courtesy a reversed ONGC income due to—surprise—ongoing litigation.
Three-month returns are negative, one-year returns are uglier, and five-year returns still flex. This stock looks like a bodybuilder who skipped leg day in the last quarter. Curious yet?
2. Introduction – Same Rigs, Higher Rates, New Drama
Jindal Drilling & Industries Ltd (JDIL), part of the Dharam Pal Jindal Group, lives in the offshore drilling ecosystem, where contracts are long, capex is brutal, and cash flows swing harder than a Mumbai local during peak hours.
The company operates five offshore rigs, all deployed with ONGC, which is both a blessing and a recurring plot twist. The good part? Long-term contracts, dollar-linked rates, and improved economics. The bad part? Disputes, arbitration, Supreme Court appeals, and accounting reversals that show up uninvited in quarterly results.
FY24 and FY25 were supposed to be the comeback seasons—higher day rates, improving utilization, debt reduction,
and even rig acquisitions. Then Q3 FY26 walked in, reversed ₹100.43 Cr (₹10,043 lakh) of ONGC-related income, and reminded investors that offshore drilling is not for the faint-hearted.
So the question is simple: is this a temporary accounting migraine or a structural headache?
3. Business Model – WTF Do They Even Do?
JDIL drills holes in the sea. Very expensive holes. With very expensive machines.
Core services include:
- Offshore Drilling: Jack-up rigs drilling beneath the seabed for oil and gas.
- Directional / Horizontal Drilling: Fancy drilling at angles because straight lines are boring and inefficient.
- Measurement While Drilling (MWD): Real-time data on trajectory, inclination, and temperature—basically Google Maps for drill bits.
- Mud Logging: Analysing rock cuttings to sniff out oil and gas like a trained Labrador with an engineering degree.
Revenue mix FY24:
- Rigs: 80%
- Directional drilling: 19%
- Mud logging: 1%
This is a rig-first company. Everything else is garnish. If rigs are deployed at good rates, life is good. If a rig sits idle or ONGC sneezes legally, the P&L catches a cold.
4. Financials Overview – The Quarter That Shall Not Be Named
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 242 | 239 | 238 | 1.3% | 1.7% |
| EBITDA (₹ Cr) | 72 | 81 | 93 | -11.1% | -22.6% |
| PAT (₹ Cr) | -33 | 66 | 133 | -150.6% | -124.8% |
| EPS (₹) | -11.52 | 22.76 | 45.73 | -150.6% | -125.2% |
