United Drilling Tools September revenue declines 71% year on year

United Drilling Tools Limited reported standalone revenue from operations of Rs 16.2386 crore for the quarter ended September 30, 2026, down 70.8% from Rs 55.6018 crore a year earlier, while net profit declined 70.6% to Rs 1.6825 crore. The unaudited results were subjected to a limited review.

Why did United Drilling Tools' September-quarter revenue decline?

United Drilling Tools' September-quarter revenue declined to Rs 16.2386 crore from Rs 55.6018 crore in the quarter ended September 30, 2025, a reduction of Rs 39.3632 crore. The company reports its activities in one business segment, Engineering, and did not identify a customer, contract, geography, production volume or other specific reason for the year-on-year movement.

United Drilling Tools stated that the type of products manufactured and sold affects quarter-to-quarter results. It also cautioned that the nature of its business and product mix can mean that a quarterly result is not a true or proportionate reflection of annual performance. Revenue was also lower than the Rs 34.099 crore reported in the quarter ended June 30, 2026, a sequential reduction of Rs 17.8604 crore.

How did United Drilling Tools' profit change in the September quarter?

United Drilling Tools' net profit was Rs 1.6825 crore in the September 2026 quarter, against Rs 5.7238 crore a year earlier and Rs 4.1499 crore in the June 2026 quarter. The year-on-year decline was Rs 4.0413 crore, while the sequential decline was Rs 2.4674 crore.

Profit before tax was Rs 2.3767 crore, compared with Rs 8.1347 crore in the September 2025 quarter and Rs 5.8953 crore in the June 2026 quarter. The results show no exceptional or extraordinary items in any of those three quarterly periods, so those categories did not affect the reported profit-before-tax comparison.

Tax expense was Rs 69.42 lakh in the latest quarter, comprising current tax of Rs 73.08 lakh and deferred-tax income of Rs 3.66 lakh. In the corresponding prior-year quarter, tax expense was Rs 2.4109 crore, comprising current tax of Rs 2.4136 crore and deferred-tax income of Rs 27,000.

Which costs changed with United Drilling Tools' lower sales?

United Drilling Tools' material cost fell to Rs 12.2889 crore in the September 2026 quarter from Rs 44.6265 crore a year earlier, a decrease of Rs 32.3376 crore. Employee-benefit expense decreased to Rs 1.8964 crore from Rs 3.4569 crore, and other expenses declined to Rs 2.0554 crore from Rs 7.5164 crore.

Total expenses fell by Rs 34.2249 crore to Rs 14.6799 crore, while total income declined by Rs 39.829 crore to Rs 17.0566 crore. The larger reduction in income than in expenses corresponded with profit before tax falling by Rs 5.758 crore from the prior-year quarter.

Finance cost was Rs 15.48 lakh, compared with Rs 1.0041 crore a year earlier and Rs 27.69 lakh in the June 2026 quarter. Depreciation and amortisation were Rs 89.16 lakh, compared with Rs 87.19 lakh a year earlier, while the change in inventories of finished goods, work in progress and stock in trade was negative Rs 2.6072 crore in the latest quarter.

What do United Drilling Tools' half-year results show?

United Drilling Tools reported revenue from operations of Rs 50.3376 crore for the half year ended September 30, 2026, down Rs 36.9316 crore from Rs 87.2692 crore in the corresponding 2025 half year. The 42.3% half-year revenue decline was less pronounced than the 70.8% decline in the September quarter alone because the June 2026 quarter contributed Rs 34.099 crore of revenue.

Half-year net profit was Rs 5.8324 crore, versus Rs 8.6387 crore in the corresponding prior-year period, a reduction of Rs 2.8063 crore. Profit before tax declined to Rs 8.272 crore from Rs 12.2599 crore, and total income decreased to Rs 51.6578 crore from Rs 89.2868 crore.

United Drilling Tools reported basic and diluted earnings per share of Rs 2.90 for the six months, compared with Rs 4.25 in the corresponding 2025 period. Paid-up equity share capital was Rs 20.3031 crore at September 30, 2026, unchanged from the comparative period shown in the results.

What changed in United Drilling Tools' financial position and cash flow?

United Drilling Tools' total assets were Rs 314.7837 crore at September 30, 2026, compared with Rs 302.5437 crore at March 31, 2026. Current assets increased to Rs 231.2578 crore from Rs 214.1348 crore, while trade receivables declined to Rs 61.5277 crore from Rs 71.571 crore.

Inventories rose to Rs 140.1996 crore from Rs 133.5141 crore, and other current assets increased to Rs 26.5169 crore from Rs 7.5688 crore. Total equity increased to Rs 281.7979 crore from Rs 278.3393 crore, including other equity of Rs 261.4948 crore at September 30, 2026.

Net cash flow from operating activities was an outflow of Rs 6.0322 crore for the half year ended September 30, 2026. The filing presents Rs 37.6636 crore of operating cash inflow for the year ended March 31, 2026, rather than for the comparable prior-year half year; the latest half-year outflow included a Rs 6.6855 crore inventory increase and a Rs 16.605 crore increase in financial and other assets.

Current borrowings increased to Rs 12.517 crore at September 30 from Rs 1.8939 crore at March 31. Net cash flow from financing activities was an inflow of Rs 7.8405 crore for the half year, including Rs 10.6231 crore of net short-term borrowing proceeds, while cash and cash equivalents rose to Rs 45.63 lakh from Rs 16.79 lakh.

Conclusion

United Drilling Tools' September-quarter standalone results recorded lower sales and earnings both year on year and sequentially, with revenue of Rs 16.2386 crore and net profit of Rs 1.6825 crore. The half-year reduction was smaller, as the June 2026 quarter generated Rs 34.099 crore of revenue and Rs 4.1499 crore of net profit.

The next reported quarter will indicate whether the September outcome reflects the product-mix effect identified by United Drilling Tools or continues into subsequent periods. The disclosed items to watch are inventories of Rs 140.1996 crore, the half-year operating cash outflow of Rs 6.0322 crore and current borrowings of Rs 12.517 crore at September 30, 2026.