Financial Performance Highlights
Jindal Drilling reported strong FY26 results with standalone revenue growing 20.36% to ₹996.57 crore and net profit increasing 22.56% to ₹172.61 crore. EBITDA surged 45.41% to ₹345.24 crore with margin expansion to 34.64% from 28.68% in FY25. The company maintained excellent operational metrics with 98.55% fleet operating efficiency and achieved zero lost-time incidents across all rigs, receiving IADC Safety Excellence certificates for all five operating rigs.
Operational and Strategic Developments
The company expanded its fleet through the acquisition of Jindal Pioneer rig for $75 million in March 2025, which is currently in Lamprell yard (UAE) with a secured three-year charter from ONGC. This brings the total operating fleet to six jack-up rigs. ONGC appreciated Jindal Supreme team for completing six exploratory wells 35-50% ahead of schedule.
Capital Structure and Dividend
The company maintained a strong financial position with zero long-term debt outstanding after full repayment during the year. The Board recommended a final dividend of ₹1 per equity share (face value ₹5 each), subject to approval at the 42nd AGM scheduled for September 15, 2026. This would result in a cash outflow of ₹289.82 lakhs if approved.
Legal and Regulatory Matters
Significant contingencies include a disputed income tax demand of ₹512.21 lakhs under various appeals before ITAT and an ongoing arbitration with ONGC regarding trade receivables of USD 14.77 million (₹6,632.81 lakhs) outstanding for over 7 years. ONGC has filed appeals in Bombay High Court and Supreme Court regarding the arbitration matter.
CSR and Compliance
The company transferred ₹315.77 lakhs of unspent CSR funds to a designated bank account for ongoing projects as required by section 135(6). Jindal Drilling has complied with all applicable provisions of SEBI Listing Regulations, Companies Act, 2013, and other statutory requirements. The 42nd AGM will be held on September 15, 2026, through video conferencing with remote e-voting available from September 11-14, 2026.
Subsequent Events and Impact
The company recorded past service cost of ₹395.00 lakhs due to implementation of new Labour Codes effective November 21, 2025. Foreign exchange exposure remained significant with ₹35,163.43 lakhs used and ₹96,545.03 lakhs earned, alongside derivative financial liability of ₹1,305.66 lakhs for forward contracts.