Jindal Drilling's Q1 FY27 results were broadly as expected, with constant revenue and stable EBITDA.

A new ONGC contract was secured for a rig undergoing refurbishment in UAE, anticipated to deploy by October 2026. The order book stands at INR 1,310 Cr.

Management indicated three rigs face dehire this fiscal year, entailing a 4-6 month refurbishment without revenue, impacting H2 revenue.

Refurbishment costs are estimated at INR 90-110 Cr per rig.

The company remains cash-rich, prioritizing redeploying existing assets and conserving cash over acquisitions.

A recent contract offers a day rate of approximately INR 45 lakh, denominated in INR.

Management is optimistic about re-hiring the three rigs, citing an expected increase in overall drilling activity post 'Samudra Manthan', despite challenges in securing international deployment at higher rates.

The long-running ONGC dispute, currently in Supreme Court, has seen favorable rulings, with approximately INR 163 Cr already received, and no material negative impact is anticipated.

The company's tone is cautiously optimistic, emphasizing asset utilization and financial prudence.