United Drilling Tools Q1 PAT Surges 43% YoY

Financial Performance Summary

Revenue Performance (Year-on-Year Comparison)

United Drilling Tools Limited reported Revenue from Operations of ₹3409.90 lakhs (₹34.10 crore) for the quarter ended June 30, 2026 (Q1 FY27), compared to ₹3166.74 lakhs (₹31.67 crore) in the corresponding quarter ended June 30, 2025 (Q1 FY26), registering a year-on-year growth of 7.68%.

Profitability and EBITDA Performance (Year-on-Year Comparison)

Profit Before Tax (PBT) for the 1st Quarter ended FY27 stood at ₹589.53 lakhs (₹5.90 crore), compared to ₹412.52 lakhs (₹4.13 crore) in the corresponding period of FY26, reflecting a growth of 42.91%.

EBITDA for the 1st Quarter ended FY27 was ₹704.10 lakhs (₹7.04 crore), as against ₹610.92 lakhs (₹6.11 crore) in the corresponding quarter ended June 30, 2025. EBITDA margins improved to 20.35% from 18.94% year-on-year.

| Metric | Q1 FY27 | Q1 FY26 | Growth |

| EBITDA Margin | 20.35% | 18.94% | +141 bps |

The improvement in EBITDA was primarily driven by a better product mix and enhanced operational efficiencies.

Operational Highlights

Premium Connection Technology – Enhancing Competitive Position

During the quarter, United Drilling Tools Limited achieved a significant technological milestone with the successful supply and deployment of its Premium Connection Casing Pipes for Oil India Limited (OIL). Under a development order, the Company successfully supplied 7-inch Premium Production Casing, which has been installed and commissioned in a gas well in Assam.

This achievement marks UDTL's entry into the premium Oil Country Tubular Goods (OCTG) market, one of the fastest-growing and high-value segments of the oil and gas industry. The successful field performance establishes UDTL as one of the few Indian manufacturers capable of producing advanced premium connection technology.

Domestic Market Performance

The Company maintained its strong position in the domestic market by securing significant orders from:

Oil and Natural Gas Corporation Limited (ONGC)
Vedanta Limited
Shivganga Drillers Limited
Aadyashree Drilling International Private Limited

These orders include the supply of Large OD Casing Pipes with Multi-Start Connectors, Integral Blade Stabilizers, Tubing, Pup Joints & Crossovers, and Stabilizers.

International Market Performance

The Company continued to expand its global presence by securing export orders from:

Argentera Oil and Gas, Brazil - supply of Casing Pipes with Multi-Start Connectors for Petrobras
Trident East Limited, Russia - trial order for PUMA Connectors

International Business Expansion

UDTL continues to strengthen its presence across key global energy markets including Russia, Brazil, Indonesia, and Vietnam. The Company has appointed commercial agents and business development representatives in strategic overseas markets, including Oman and the United States, to identify new opportunities and expand its global order pipeline.

Management Commentary

Mr. Kanal Gupta, Managing Director, stated: "We are encouraged by the strong year-on-year improvement in our financial performance during Q1-FY27, driven by higher execution of orders and enhanced operational efficiency. Our continued focus on technology-driven products, export market expansion, and cost optimisation initiatives is strengthening our profitability profile. With a healthy order book and improving demand environment, we are confident of sustaining growth momentum and delivering enhanced value to our shareholders in the coming quarters."

Growth Outlook and Market Opportunities

Project Samudra Manthan Impact

The Government of India's National Offshore Exploration Scheme (Samudra Manthan) was approved on July 31, 2026, with a Phase-I outlay of ₹84,084 crores up to FY 2030-31. This initiative aims to boost hydrocarbon exploration and production sector, particularly in India's offshore basins.

Management believes this will create significant demand for the Company's products as they are directly used in drilling and exploration of oil wells and enhance production activity in offshore areas. The anticipated expansion in offshore drilling activities is likely to drive demand for the Company's specialized products, including premium OCTG solutions, casing pipes, connectors, stabilizers, and other critical drilling equipment.

Order Pipeline

The Company has successfully completed development order of Premium Tubing Casing Pipes of Oil India and expects to receive orders from oil companies. UDTL has registered with Oil and Gas Companies globally and expects to receive orders. The Company continues to actively participate in domestic and international tenders for specialized drilling equipment and related products.

Company Background

United Drilling Tools Limited, established in 1985, is a leading manufacturer of:

Large OD casing pipe with multi-start high performance connector
Wireline & well service equipment
Gas lift equipment
Downhole Tools

The company has 32 registered Trademarks (24 in India, 8 in other countries) and 14 Design Patents registered (9 in India, 5 in UK), with 8 additional patents received in India.

Operating Environment Context

The operating environment remained challenging, marked by elevated crude prices, inflationary pressures and disruptions stemming from the West Asia conflict, which led to higher input costs across the sector. Despite these external headwinds, the Company delivered better performance in Q1-FY27 compared to corresponding quarter Q1-FY26.