United Drilling Tools Ltd

Trading window update

• Trading window closed for designated persons from Oct 1, 2026 per insider trading code and SEBI rules.
• Opens 48 hours after the Q2 FY2026-27 results announcement; board meeting date to be intimated.

AGM Details & Outcomes

• AGM held on 23 September 2026 at 11:30 A.M. via Video Conferencing.
• All items of business transacted; resolutions passed by requisite majority.
• Voting results and scrutinizer’s report submitted as Annexures A and B.

AGM Details

• AGM held on September 23, 2026 at 11:30 AM IST via VC/OAVM.
• Duration 11:30 AM to 01:08 PM including e-voting.

Resolutions - ordinary and special

• Adopt Audited Financial Statements (standalone and consolidated) for year ended March 31, 2026 — subject to majority.
• Approve final dividend and two interim dividends for FY ended March 31, 2026.
• Re-appoint Shri Inderpal Sharma, retiring by rotation.
• Re-appoint Statutory Auditors M/s A P U & Company.
• Ratify remuneration payable to Cost Auditors for FY2027.
• Approve related party transactions with Oil Drilling Consultancy Services (Chairman’s firm).
• All resolutions deemed approved on September 23, 2026, subject to receiving necessary majority.

Dividend details

• Dividend amount per share not disclosed.

Directors and Auditors

• Shri Inderpal Sharma retires by rotation; re-appointment offered.
• Statutory Auditors M/s A P U & Company re-appointed.

Order details

• Awarding entity: Oil and Natural Gas Corporation Limited (ONGC) (domestic).
• Scope: supply of Stabilizer.
• Estimated contract value: Rs. 4,78,27,782.
• Execution period: 6 months.
• Terms: supply of stabilizer; no further terms disclosed.
• Promoter/group interest: No; related party transactions: No.
• Impact: not disclosed.

Order details

• International order for casing pipe with UDT connectors; Rs 73,35,250; 3 months; no promoter group interest from Argentera.

Financial snapshot

• FY26 standalone revenue from operations ₹181.96 crore, +5.7% YoY.
• PAT ₹18.76 crore, +25.7% YoY.
• EBITDA ₹33.64 crore; EBITDA margin 18.49%.
• EPS ₹9.30 per share.
• Net worth ₹278.34 crore; gearing 9.98%.
• Dividend ₹1.80 per share; 18% of face value.
• Domestic turnover ₹173.63 crore; exports ₹8.14 crore; export mix 4.49%.
• Presence in 16 countries; six manufacturing facilities.

Operations & capacity

• Six manufacturing facilities operated; Mundra Phase I completed.
• Facilities at Noida (two), Mundra, Kandla; Mundra expansion adds capacity.
• Product portfolio covers premium casing, connectors, wireline equipment, tubulars, drilling/production tools.
• Premium connection tech: 5,000 m premium casing supplied to Oil India; 4,000 m installed in Assam gas well.
• R&D focus: new connector sizes and winch variants; ISO/API standards pursued.
• Export orders from Brazil, Russia, Taiwan, Uzbekistan; Petrobras as customer; PUMA connector in Russia.
• Government initiatives like Make in India and Samudra Manthan support indigenous manufacturing.
• New greenfield Mundra plant enhances capacity and logistics.

Geography & exports

• Domestic turnover constitutes majority of revenue; international exposure growing.
• Export markets include Brazil, Russia, Taiwan, Uzbekistan; 16 countries served.

Dividends & capital allocation

• Two interim dividends of ₹0.60 per share; final ₹0.60 per share; total ₹1.80.
• Record date 16 Sep 2026; payout around 8 Oct 2026.
• Board-approved dividend policy; payout aligns with profitability and cash flow.

Governance & risk management

• Board size seven; four independent; one woman director; MD joined Aug 2025.
• Kanal Gupta appointed MD Aug 12, 2025; Pramod Kumar Gupta as Chairman.
• Pandian Kalyanasundaram ceased as Independent Director on May 20, 2026; Khitish Nayak appointed earlier.
• Statutory auditors: M/s APU & Company; second term 2026–2030; remuneration ₹7.5 lakh.
• Internal: Grover Lalla & Mehta; Secretarial: Balraj Sharma & Associates.
• Related Party Transactions: Oil Drilling Consultancy Services; RPTs pre-approved; aggregate limit ₹1.48 crore.
• Audit committee oversight; no material adverse audit observations; going concern affirmed.

Related party transactions & RPT oversight

• RPT with Oil Drilling Consultancy Services (Shri Pramod Gupta) for technical consultancy.
• Proposed fee ₹12.40 lakh per month; period from 44th to 45th AGM (to 2027).
• Aggregate proposed RPT cap ₹1,48,80,000; turnover impact approx 0.80%.
• AC/Board tests arm's length terms; disclosures in explanatory statements and Annexures.
• Promoter-related party has significant shareholding; related party approvals obtained as required.

ESG & CSR

• CSR expenditure ₹31.86 lakh; 2% of average net profit ₹31.82 lakh.
• CSR policy on company website; BRSR disclosed in annual report.
• 2% CSR obligation fulfilled; Net CSR spend near obligation; no unspent carry-forward.
• Zero liquid discharge (ZLD) implemented; 100% water recycled.
• Energy & water: 0.36 kg CO2e per turnover rupee; water intensity monitored; 1650 KL water withdrawal.
• Board and management emphasize safety, education, healthcare, and community development.

Outlook & risks

• Oil & gas cycle and Gulf normalization drive near-term demand
• Samudra Manthan offshore exploration outlay supports domestic equipment makers
• Domestic Make in India and export diversification reduce cyclicality
• Geopolitical tensions and energy price volatility remain key risks
• Regulatory/compliance and cyber security remain ongoing governance priorities

Audit flags & controls

• No material audit qualifications; ICFR adequate and effective.
• CFO and MD certification on financial statements submitted with annual report.
• Secretarial audit and annual return filed; no material fraud reported.

AGM Details

• AGM date/time: 23 September 2026 at 11:30 IST via VC/OAVM.
• Mode: VC/OAVM; venue deemed at registered office.
• Record date for entitlement: 16 September 2026.
• Members' register and share transfer books closed: 17–23 September 2026.
• E-voting window: 20–22 September 2026.

Ordinary Business

• Adopt standalone and consolidated financial statements for FY 2025-26.
• Approve two interim and final dividends totaling 1.80 per share.
• Reappoint Inderpal Sharma as Director, liable to retire by rotation.

Auditors

• Statutory Auditor re-appointed: M/s A P U & Company for four-year term to 2030.
• Board authorized to vary remuneration/terms as needed.
• Cost Auditor remuneration ratified: 75,000 plus taxes for FY 2027.

Dividend Details

• Final dividend: 0.60 per share.
• Two interim dividends totaling 1.20; aggregate 1.80 per share.
• Final dividend payable electronically on Oct 8, 2026.

RPT Details

• Related party: Oil Drilling Consultancy Services; proprietor Shri Pramod Kumar Gupta; Director.
• Nature: technical consultancy and advisory services.
• Tenure: from 44th AGM to 45th AGM.
• Cap: up to 1,48,80,000; ~0.80% of turnover.
• Period: engagement through 45th AGM.
• Arm’s-length, no defaults; AC-approved; terms to be set by board.
• Proposed monthly fee: 12,40,000.

Voting Status

• Voting results are not disclosed in the filing.

Record date correction for final dividend

• Record date for the Final Dividend corrected to September 16, 2026.
• Previously stated date September 11, 2026 was a clerical error.
• XBRL submission filed with stock exchanges reflecting the corrected date.

Financial performance

• Revenue from operations ₹3,409.90 lakhs in Q1 FY27, up 7.68% YoY.
• PBT for Q1 FY27 ₹589.53 lakhs, up 42.91% YoY.
• EBITDA ₹704.10 lakhs with 20.35% margin in Q1 FY27.
• EBITDA growth driven by better product mix and operational efficiencies.
• Healthy order book supports outlook for revenue growth.

Operational and strategic developments

• 7-inch Premium Production Casing Pipes supplied to Oil India Limited; marks entry into premium OCTG.
• Domestic orders secured from ONGC, Vedanta, Shivganga Drillers, and Aadyashree Drilling.
• Export orders from Argentera Oil and Gas (Brazil) and Trident East Limited (Russia).
• Development order for Premium Connection technology to Oil India's project, expanding addressable market.
• International expansion: appointing agents in Oman, U.S., and other markets.

Outlook and government initiatives

• Samunder Manthan offshore scheme approved July 31, 2026; Phase I outlay ₹84,084 crore through FY2030-31.
• Management optimistic on sustaining revenue and profitability growth amid improving demand environment.