Jindal Drilling & Industries Ltd (JDIL): Strong Order Book and Positive Growth Signals.....

Introduction: Jindal Drilling & Industries Limited (Rs.624.30), an established entity of the D P Jindal Group since 1983, is a key player in India's oil and gas sector. The company's operations encompass two primary areas: the manufacturing of seamless casing pipes and the provision of critical offshore oil well drilling services. 

Notably, JDIL conducts drilling operations for India's state-owned oil giant, ONGC, utilizing leased jack-up drilling rigs, and also offers specialized mud-logging services.

Order Book Snapshot:

Jindal Drilling & Industries Ltd (Rs.624.30) currently has a healthy order book of around ₹1,640 crore ($196 million approx), providing solid revenue visibility for the next 2–3 years. A major contributor is the three-year contract signed with India’s state-run oil giant ONGC for its rig Jindal Supreme. Photo: Moneycontrol.com.

The new contract offers a daily rate of $88,859, more than double the previous $40,700, signaling a favorable shift in pricing dynamics in the offshore drilling space.

Key Positives:

🧨Strategic Asset Consolidation: In March 2025, JDIL acquired the jack-up rig Jindal Pioneer from a joint venture partner for $75 million, allowing it full ownership and control of a high-earning asset. This move strengthened the company’s asset base and is expected to enhances profit margins.

🧨Strong Financial Health: Jindal Drilling demonstrated strong financial performance in the quarter ending December 2024, showcasing significant year-over-year growth across key metrics:

Net Sales: Reached ₹239.46 crore, marking a substantial increase of 30.81% compared to ₹183.06 crore in December 2023.

Net Profit: Soared to ₹65.95 crore, exhibiting an impressive growth of 106.48% from ₹31.94 crore in the same quarter of the previous year.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Stood at ₹95.28 crore, reflecting a robust growth of 56.17% compared to ₹61.01 crore in December 2023.

Earnings Per Share (EPS): Increased significantly to ₹22.76, a substantial rise from ₹11.02 in December 2023.

Key Takeaway:

The financial results for the quarter ending December 2024 indicate a strong upward trajectory for Jindal Drilling, with significant growth in revenue, profitability, and earnings per share compared to the corresponding period in the previous year.

The company maintains a lean balance sheet with a low debt-to-equity ratio of 0.07, showcasing financial prudence.

Industry Tailwinds: The global offshore drilling sector is experiencing an upswing. Day rates for jack-up rigs have climbed to between $65,000 and $90,000, a trend JDIL is well-positioned to capitalize on.

Reliable Client Relationship: JDIL enjoys a long-standing partnership with ONGC, India’s largest oil & gas explorer. This relationship brings recurring contract opportunities and ensures business stability.

Bullish Market Sentiment: Analysts are bullish, assigning a "BUY" rating with a 12-month target of ₹1,200, implying a potential 38% upside.

Conclusion:

Jindal Drilling stands as a beneficiary of the offshore drilling upcycle, with a strong order book, healthy financials, and smart strategic moves. With global energy demand still robust and exploration budgets rising, JDIL is well-placed to deliver value to both domestic and international stakeholders.