Jindal Drilling & Industries Ltd

AGM notice and online access

• 42nd AGM scheduled for 15 September 2026 at 03:00 PM IST via Video Conferencing/OAVM.
• Notice and Annual Report for FY 2025-26 sent electronically to members with registered email addresses.
• For members without registered emails, letter provides web-link and path to access materials.
• Web Link: https://www.jindal.com/jdil/pdf-new/Annual-Report-2026.pdf
• Path to access: Investor > Financials > Annual Reports > Annual Report 2025-26.
• Details on e-voting and AGM participation provided in the Notice.

AGM details

• Date and time: 15 September 2026 at 3:00 PM; mode VC/OAVM.

Key resolutions

• Adopt Audited Financial Statements including Consolidated Statements and Directors’/Auditors’ Reports (Ordinary).
• Declare dividend on equity shares as recommended by the Board (Ordinary).
• Re-appoint Shiv Kumar Singhal as Director, liable to retire by rotation (Ordinary).

Dividend

• Dividend proposed: Re 1 per share; record date 1 Sep 2026; payout after 17 Sep 2026 (TDS applicable).

Director changes

• Shiv Kumar Singhal to be re-appointed as Director, liable to retire by rotation; remuneration: sitting fees.

Overview

• Standalone BRSR for FY2025-26 covering drilling services for oil and gas exploration.
• Main activity accounts for 100% of turnover (Drilling Services).
• Standalone reporting boundary; 28 locations (22 sites, 6 offices) plus 1 international unit.
• CSR and risk oversight provided by CSR Committee and Risk Management Committee.

Key ESG Risks & Opportunities

• Opportunity: service exploration driven by Atmanirbhar Bharat and domestic substitution.
• Opportunity: customer satisfaction drives market development and repeat contracts.
• Governance risk: potential financial/reputational loss without strong compliance; board oversight mitigates.
• Policy framework aligned with NGRBC; quarterly board reviews.

Governance & Policy Highlights

• No dedicated sustainability committee; CSR and Risk Management Committees oversee ESG.
• ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 certifications maintained.
• CSR policy aligns with National Voluntary Guidelines; Code of Conduct and POSH policy in place.
• No separate anti-corruption policy; ethics governed by Code of Conduct.
• Shareholder complaint: 1 filed in 2025-26; Vigil Mechanism accessible via company site.
• EPR applicable; waste plan aligned with ONGC Circular 25/2023.

Social Responsibility & Workforce

• Total employees: 624; 609 male, 15 female; 120 workers.
• Female share: 2.4% of total workforce; workers are 100% male.
• LTIFR is nil for both employees and workers in FY2025-26.
• Wages: female wages 1.16% of total in FY2025-26.
• Well-being spend: 0.13% of total revenue on wellbeing measures in FY2025-26.
• 100% Board and employees trained on governance and safety topics.

Environmental Performance

• Total electricity consumption: 7,23,614 MJ; total fuel: 11,867 kL.
• Energy from other sources: 25,13,96,192 MJ; total energy: 25,21,19,806 MJ.
• Water withdrawal: 61,212 KL; third party water 4,738 KL; seawater 55,728 KL; rainwater 746 KL.
• Water discharge to seawater: 15,822.25 KL; to third parties: 4,678 KL.
• Total waste: 314.9231 MT; plastic 30.435 MT; oil mixed water 167.952 MT.
• Certifications: ISO 14001:2015; rigs MARPOL classed for IOPP/IAPP/ISPP.

Stakeholder Engagement & Complaints

• Stakeholders: shareholders/investors, government/regulators, employees, customers, bankers, suppliers.
• Engagement channels: email, website, meetings; frequency: as required.
• Shareholders filed 1 complaint in 2025-26; no other major outstanding issues.
• Vigil Mechanism accessible; complaints can be routed via the governance portal.

Other Notable Metrics

• Affiliations: member of International Association of Drilling Contractors.
• Related-party transactions: purchases 15,838.53; investments 18,659.38.
• Data privacy: internal information security policy; no data breaches reported.
• No environmental impact assessments conducted in FY2025-26; PAT/DCs not applicable.

Financial performance

• Standalone revenue from operations ₹996.57cr; up 20.36% YoY.
• Standalone EBITDA ₹345.24cr; EBITDA margin 34.64%.
• Standalone net profit ₹172.61cr; tax ₹59.36cr; exceptional item ₹3.95cr.
• Total standalone income ₹1,042.34cr; 2024-25 ₹884.33cr.
• Consolidated total income ₹10,423.42cr (₹1,04,234.20 Lakhs).
• Consolidated PAT ₹2,106.04cr (₹21,060.41 Lakhs).
• Dividend proposed: ₹1 per equity share; subject to AGM.
• Earnings per share (standalone) ₹59.56; consolidated ₹72.67.

Fleet & operations

• Six jack-up rigs in fleet; five deployed during the year.
• Jindal Pioneer acquired March 2025; three-year ONGC charter secured.
• Fleet-wide operating efficiency 98.55% for FY2025-26.
• ONGC appreciation for Jindal Supreme; six wells completed ahead of schedule.
• All five operating rigs earned IADC Safety Excellence certificates.
• Zero Lost Time Incidents across the fleet in FY2025-26.

Capital structure & dividends

• Total debt ₹9,317.53 Lakhs; no long-term debt outstanding at year-end.
• Debt-to-equity ratio 0.0512; net debt position strengthened.
• Promoters/promoter group hold 66.78% of equity.
• Equity share capital ₹1,449.06 Lakhs; authorized ₹2,325 Lakhs.
• Dividend per share ₹1; record date 1 Sep 2026; AGM 15 Sep 2026.

Governance & risk

• Board comprised six directors; Sunil Arora resigned on 31 Jul 2025.
• Audit Committee: 3 directors; four meetings in 2025-26.
• Independent Directors meet; Vigil Mechanism in place with no denials.
• Emphasis of Matter in standalone auditor report on ONGC trade receivable of USD 14.77m over 7 years.
• Litigation: ONGC arbitration; Supreme Court/ Bombay High Court proceedings noted.
• Two joint ventures (Discovery Drilling Pte. Ltd. and Virtue Drilling Pte. Ltd.) equity accounted.

CSR & ESG

• CSR obligation for FY2025-26: ₹322.77 Lakhs; expenditure ₹7.00 Lakhs.
• Shortfall of ₹315.77 Lakhs; previous year shortfall ₹182.13 Lakhs.
• CSR activities include education, healthcare, animal welfare and community foods.
• Rely on ISO 9001, 14001, 45001; MARPOL; BV transitioned for certification continuity.
• CSR Committee met 26 May 2025; composition disclosed in Corporate Governance.

Outlook & risk

• Global economy: India grew about 7.7% in FY2025-26; external headwinds persist.
• Indian drilling market expected subdued 1-2 years; ONGC tender cancellations noted.
• Samudra Manthan offshore exploration scheme approved; potential uplift in capex.
• Concentration risk: ONGC remains dominant customer; diversification pursued via tenders.
• Rig market overhang could weigh near-term rates; long-term demand supported by domestic energy priorities.

Audit & controls

• Statutory auditors Kanodia Sanyal & Associates; unqualified report.
• Secretarial auditors Ajit Mishra & Associates; no qualifications.
• CEO/CFO certificates provided; internal controls deemed adequate.
• Management discusses litigations; provision disclosures aligned with accounting policies.

Financial Performance

• Order book stands at INR 1,310 crores; year-wise bifurcation shown.
• Total revenue broadly flat versus prior two quarters.
• FY26 Q3 dip due to reversal of other income booked in Q2 FY26.
• EBITDA in line; variation mainly from forex-related expenses.
• Three rigs to be dehired this year; 4–6 months refurbishment; no revenue during refurb.
• Pioneer refurbishment completion expected by first week of September; deployment in October.
• Rig EBITDA mix largely from the rig segment.

Fleet and Contracts Update

• Five rigs on long-term ONGC contracts; sixth rig recently contracted.
• Discovery-I and Jindal Star contract durations extended.
• New contract day rate: INR 45.83 lakhs per day; denominated in INR.
• Three rigs dehired may redeploy; 4–6 months refurbishment with no revenue.
• Pioneer rate: US$62,000 bid; achieved about US$47,800 per day.
• Domestic focus for redeployed rigs; international opportunities considered but risk.
• Next three rigs to be redeployed; Samudra Manthan exercise cited.

Refurbishment and Capex

• Refurbishment cost per rig: INR 90 crores to INR 110 crores.
• Pioneer refurbishment to complete by first week of September; deployment in October.
• Six rigs exist; three will be dehired; 5 rigs ONGC-long-term; 6th rig recently contracted.

Outlook and Guidance

• Samudra Manthan may lift industry activity; benefits across shallow to deepwater.
• Blended EBITDA margin target reaffirmed at 35% for FY27.
• No acquisitions planned; focus on redeploying three rigs.

Q&A Highlights

• Renewal probability: three rigs dehired to redeploy after 4–6 months refurbishment; rate comments not provided.
• Pioneer refurbishment cost discussed; not disclosed; completion by September; deployment by October.
• ONGC dispute: no material update; potential liability remote; funds received; repay if lose.
• Domestic focus for redeployed rigs; international opportunities only if credible; country/counterparty risk.
• Tender process: each asset requires a separate bid; multi-rig tenders possible.

Balance Sheet and Liquidity

• Cash position improved; debt down; no acquisitions planned.
• Redeploy three rigs; limit capex; preserve cash.
• ONGC receivable exposure; funds received; potential repayment if loss.

Audio recording access

• Link to audio recording of the 10 August 2026 earnings call released under SEBI LODR Regulation 30.

Business Overview

• Leading offshore drilling contractor in India's oil & gas sector.
• Operates 5 offshore jack-up rigs with ONGC; 1 rig under UAE refurbishment.
• Provides mud logging and directional drilling services.
• Rigs on long-term contracts; ONGC-related exposure across multiple assets.

Key Operational Highlights

• Order book around USD 136 million and ₹1,310 crore as of 30 June 2026.
• Jindal Pioneer under refurbishment in UAE; deployment expected in Q3 FY27.

Financial Performance

• Total revenue ₹283 crore in Q1 FY27; ₹263 crore in Q4 FY26.
• Revenue from operations ₹275 crore; PAT ₹52 crore; PAT margin ~18%.
• Gross debt reduced to ₹52 crore; working capital borrowings ₹17 crore.
• Cash ₹4 crore; JV loans receivable ₹248 crore; net debt position improved.

Capital Structure & Liquidity

• Gross debt declined to ₹52 crore; March 2026 gross debt ₹69 crore.
• Liquidity affected by JV investments; overall liquidity position improved.

Strategic Priorities & Outlook

• Pioneer refurbishment deployment planned in Q3 FY27.
• ONGC long-term contracts provide revenue visibility through FY30.
• Capital allocation prioritises debt reduction and asset refurbishment.

Risks & Mitigation

• Oil price volatility and project delays; mitigated by diversified rig portfolio.
• Dependence on ONGC contracts; order book provides revenue visibility.

Governance & Leadership

• No governance changes disclosed; Company Secretary in place.