Synopsis: Jindal Drilling shares plunged by nearly 11% after the company posted a Rs 33 crore loss for Q3 FY26. Revenue barely grew during the period, but the bottom line was largely hit because of a Rs 100 crore income reversal tied to ONGC dues.
The shares of this Jindal group company, engaged in offshore drilling and allied services, including directional drilling and mud logging, are in focus after it reported disappointing financial results for this quarter of FY26. In this article, we will dive more into the details of it.
With a market capitalisation of Rs 1,379 crore, the shares of Jindal Drilling & Industries Ltd reached a day low of Rs 472 per share, down nearly 11 percent from its previous day’s closing price of Rs 527.75 per share. Over the past five years, the stock has delivered a robust 480 percent return, outperforming NIFTY 50’s return of 85 percent.
Q3 Highlights
The revenue from operations for Jindal Drilling & Industries stands at Rs 242 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 239 crores, up by 1 per cent YoY. Additionally, on a QoQ basis, it reported a slight growth of 1.7 percent from Rs 238 crore.
Also, EBITDA stood at Rs 72 crore in Q3 FY26, a decline of 11 percent as compared to Rs 81 crore in Q3 FY25. Additionally, on a QoQ basis, it reported a sharp decline of 23 percent from Rs 93 crore. Also, coming to the margins front, EBITDA margins decreased by a staggering 400 bps YoY and by 900 bps QoQ, reaching 30 percent in Q3 FY26.
Coming down to its profitability, the company reported a net loss of Rs 33 crore in Q3 FY26, which is a staggering negative turnaround as compared to a profit of Rs 66 crore in Q3 FY25 and a profit of Rs 133 crore in Q2 FY26.
The company ended up with a net loss of about Rs 33 crore this period, even though its regular business held steady. Revenue barely grew during the period when the expenses grew meaningfully. But the real trouble came from non-operating income. Other income, which used to be a positive Rs 109 crore in Q2, swung all the way down to negative Rs 81 crore in Q3, creating a massive affect to the topline.
The main reason is that the company had to reverse Rs 100.43 crore it once counted as income. This came from interest and forex gains linked to old ONGC receivables, where they booked that money earlier, after a win in the Bombay High Court, but now ONGC has taken the fight to the Supreme Court, so the cash isn’t a sure thing anymore, and this is why the company has reversed this other income of Rs 100.43 crore.
On top of that, currency swings kept biting. The company logged a forex loss of Rs 4.75 crore in Q3 FY26, after losing Rs 11.25 crore the previous quarter, as compared to a gain of Rs 8.71 crore in Q3 FY25. Also, total expenses climbed to about Rs 210 crore in Q3 FY26 crore from Rs 185 crore in Q2 FY26.
Jindal Drilling and Industries Limited is involved in the offshore drilling operations and ancillary services relevant to the exploration of oil and gas resources. The company offers services such as directional drilling, measurement while drilling, and mud logging. The company has a huge inventory of offshore rigs, MWD, downhole motors, and drill collars. It has six jack-up rigs, namely Jindal Explorer and Jindal Star, and uses the latest technology to monitor well parameters in real time.
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