Jindal Drilling & Industries Ltd Management Discussions

This Management Discussion and Analysis Report forms part of the Report of the Board of Directors for the financial year ended 31st March 2026 and has been prepared in accordance with Regulation 34(2)(e) read with Schedule V (Part B) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Unless otherwise stated, the financial information presented herein is on a standalone basis.

1. Overview of Business Environment

1.1 Global Economy

The global economy recorded GDP growth of 3.4% in calendar year 2025, led by Emerging Market and Developing Economies [EMDEs]. Advanced economies expanded by 1.9%, primarily driven by Al-related investment in the United States, while global inflation remained elevated. [Source: International Monetary Fund, World Economic Outlook, April 2026 - Global Economy in the Shadow of War.]

During the year, global trade policy increasingly reflected geopolitical and security considerations rather than efficiency-driven principles and established multilateral frameworks. Global economic activity came under further pressure following the outbreak of conflict in the Middle East at the end of February 2026. The consequent disruption to shipping through the Strait of Hormuz — through which a substantial proportion of the worlds seaborne crude passes — triggered the largest supply dislocation the oil market has experienced, with associated increases in war-risk insurance, tanker re-routing and freight costs. In this environment, policy responses by governments across the world remain critical in addressing the macroeconomic challenges of the years ahead.

A prolonged disruption could adversely affect global growth through elevated energy prices, supply chain dislocation and tighter financial conditions. Reflecting the prevailing uncertainty, the International Monetary Fund departed from its traditional baseline in the April 2026 World Economic Outlook and presented a reference forecast instead, assuming that the conflict remains limited in duration, intensity and scope. Under a severe downside scenario, global growth could moderate to around 2% or lower, bringing the world economy close to a global recession and marking only the fifth such instance since 1980.

Outlook

Global growth is projected to moderate to 3.1% in 2026 before edging up marginally to 3.2% in 2027. Global headline inflation is expected to rise to 4.4% in 2026 before declining to 3.7% in 2027. Risks arising from escalating geopolitical tensions, sustained energy price volatility and potential trade disruptions could adversely affect this trajectory.

1.2 Indian Economy

Indias real GDP grew by 7.7% in FY 2025-26, as against 7.1% in FY 2024-25, reflecting resilient underlying momentum in economic activity. [Source: Provisional Estimates of Annual National Income, Ministry of Statistics and Programme Implementation, 5th June 2026.]

Despite multiple global headwinds, heightened trade uncertainty and the imposition of elevated tariffs, the Government responded with calibrated policy interventions, accelerated deregulation and simplification of compliance requirements across sectors. Growth was supported by robust consumption and investment, aided by supportive policy measures, on-going structural reforms and favourable financial conditions. This demand-led resilience was mirrored on the supply side, with manufacturing activity strengthening significantly and emerging as a key contributor to economic resilience, while the services sector continued to drive overall economic growth.

A key statistical development during the year was the revision of Indias GDP series, with the base year updated from 2011-12 to 2022-23 to incorporate structural shifts in the economy over the past decade. Consequently, previously reported GDP levels and growth rates have been re-estimated.

In nominal terms measured in US dollars, Indias position in the global economic rankings moved to sixth in 2025 from fifth in 2024, notwithstanding India continuing to register one of the fastest growth rates among major economies. A stronger US dollar and the depreciation of the Indian rupee — which moved from Rs. 85.43 to the US dollar as at 31st March 2025 to Rs. 93.48 as at 31st March 2026, a depreciation of approximately 9.4% over the financial year — weighed on nominal GDP in dollar terms, and the downward revision to historical estimates under the revised base-year series also contributed to the change. [Source: International Monetary Fund, World Economic Outlook, April 2026.]

On the external financing front, gross Foreign Direct Investment recorded substantial growth, while net FDI moderated on account of higher repatriation. India continues to remain an attractive destination for Greenfield FDI projects.

Outlook

India is expected to sustain its growth momentum in FY 2026-27, with the Reserve Bank of India projecting real GDP growth of approximately 6.6%, moderating from the FY 2025-26 level on account of downside risks arising from the geopolitical situation in West Asia and monsoon-related uncertainty.

1.3 International Drilling Market

Crude oil prices during FY 2025-26 were marked by extreme volatility. Brent traded in the low-to-mid US$70s per barrel immediately prior to the outbreak of conflict in the Middle East at the end of February 2026, and rose sharply thereafter to above US$100 per barrel during March 2026 — among the steepest monthly increases on record — as shipping through the Strait of Hormuz was effectively suspended. Prices peaked at approximately US$121 per barrel in April 2026 and have since remained volatile, trading at approximately US$87 per barrel as at the date of this Report.

This movement underscores the dominance of geopolitical risk premia over traditional supply-demand fundamentals. Notably, charter hire rates were not directly affected by the price movement, which was principally the consequence of severe short-term supply disruption rather than a change in the underlying demand outlook for drilling services.

While the oil price environment should ordinarily have provided a supportive backdrop, the jack-up market was significantly affected by Saudi Aramcos decision to unwind substantially the whole of the activity increase it had undertaken over the preceding three years. Aramco suspended and released a large number of jackup rigs during FY 2024-25, and the rollover effect of those releases continued to weigh on the market through FY 2025-26, resulting in an unprecedented increase in the available supply of jack-up rigs. Global demand for jack-ups accordingly remained subdued. Although a number of the released rigs have since secured new contracts, many continue to be marketed globally, and the resulting overhang has disrupted the market for jack-up rigs worldwide.

1.4 Indian Market

Against this backdrop, the Indian market was substantially affected by the unexpected cancellation of tenders floated by ONGC. Activity levels in India have declined from the all-time high recorded in the earlier part of the cycle, driven largely by these cancellations. Since 2024 a number of jack-up tenders floated by ONGC have been cancelled, in certain cases after price bids had been opened. More recently, unexpected reductions in rates offered by certain Indian contractors have brought charter hire rates down to extremely low levels. Such rates are unsustainable in view of the increased cost of operations and of regulatory compliance.

It is therefore expected that the market for rigs is likely to remain subdued over the next one to two years, after which it is expected to improve. The Companys rigs enjoy an edge, having been built specifically to the requirements of Indian offshore conditions, and the Company is well positioned to take advantage of an improvement in market conditions as and when it occurs.

2. Industry Structure and Developments

The Company operates in the offshore contract drilling services industry, providing jack-up drilling rigs and allied services, including directional drilling and mud logging, to exploration and production operators in Indian waters. The Indian offshore jack-up market is characterised by a single dominant demand centre. The substantial majority of jack-up rigs operating in Indian waters are hired by ONGC from third-party drilling contractors, with a smaller number owned and operated by ONGC itself. Demand is therefore driven principally by ONGCs exploration and development programme and its associated tendering cycle. Contracts are typically awarded through competitive tender for terms of three years, with day rates fixed for the contract period, which provides revenue visibility over the contract term but concentrates re-pricing risk at the point of renewal.

Supply in the Indian market comprises a limited number of domestic contractors together with international drilling contractors bidding into Indian tenders. Rigs purpose-built or upgraded for Indian offshore conditions — including the environmental, regulatory and technical specifications applicable in the Mumbai High and adjoining basins — enjoy a structural advantage in meeting tender qualification criteria.

3. Review of Operations Health, Safety and Environment

Operations continued to be conducted to a high safety standard throughout the year. All of the Companys rigs continued to demonstrate exemplary performance, with no Lost Time Incident (LTI) recorded during FY 2025-26. Training remains an inherent part of the Companys corporate culture. Regular on-the-job training is carried out for personnel in their respective functions, covering areas such as trailing hand technique, work at height, permit to work, and hand and finger injury prevention. Additional safety training is delivered by external agencies and covers safety in drilling operations; Major Emergency Management Initial Response (MEMIR) for Offshore Installation Managers; scaffolding awareness; working at height; rigging, slinging and banksman duties; and confined space entry.

All operations and activities are carried out having regard to applicable environmental requirements. The Company holds certification for ISO 9001, ISO 14001 and ISO 45001. During February 2026 the Company transitioned its certification body for these standards from DNV to Bureau Veritas. The transition was completed smoothly and certification continuity was maintained throughout. These certifications are a testimony to the Companys commitment to comply with international standards and to reduce the risks associated with rig operations. The objective is to minimise operational risk while delivering optimum working conditions by meeting legal, industry and customer requirements.

Green initiatives undertaken on the rigs include waste segregation, plastic re-use, the use of trash compactors for compressing plastic waste, periodic maintenance of equipment to monitor engine exhaust emissions, and green plantation programmes.

Client Appreciation and Industry Recognition

During the year under review the Company received formal appreciation from its principal customer and safety recognition from the International Association of Drilling Contractors (IADC). Taken together, these are an independent testimony to the Companys operational reliability, its ability to set new performance benchmarks in Indian offshore drilling, and its total commitment to safety.

Letter of Appreciation from ONGC

During the year ONGC placed on record its appreciation of the performance of the rig Jindal Supreme team.

The rig successfully completed six exploratory wells under wildcat exploration. Every one of the six wells was drilled safely, without a single downhole issue, and each showed hydrocarbon indications — an outcome that reflects rigorous well planning, disciplined execution of the drilling programme and close technical coordination with the clients subsurface team.

Each well was completed between 35% and 50% ahead of the planned number of drilling days. All six wells were also completed ahead of planned cycle days, the rig achieving a cycle speed of 838 metres per day and a commercial cycle speed of 1,828 metres per rig month. Approximately 9,115 metres were drilled in aggregate, with a maximum well depth of about 3,465 metres and the remaining wells ranging between 1,000 and 1,500 metres. Production testing and rig move operations were carried out efficiently and without delay, in-house drilling water production was effectively managed to support operations, and fuel consumption remained within benchmark limits throughout.

In February 2026, ONGC formally recognised Rig Jindal Supremes successful deployment at Exploratory Open Location MBS191HCA-A at a water depth of 100 metres, the highest water depth achieved for rig deployment in Indian Western Offshore operations to date. ONGC credited the milestone to the rig teams professionalism, meticulous planning and operational excellence under challenging conditions, and separately acknowledged the Base Teams Operations and Planning functions for their coordination and timely decision-making in the deployments success

The significance of this performance extends well beyond a single rig in a single year. Completing an exploration campaign a third to a half ahead of programme, with zero downhole incidents, releases the clients capital and rig time earlier than budgeted and allows the exploration programme to be accelerated. Managing drilling water in-house and holding fuel consumption within benchmark reduces both the cost and the environmental footprint of each well, and eliminates a category of supply-vessel dependency that is a common source of non-productive time in Indian offshore operations. Executing rig moves and production testing without delay is a direct function of maintenance discipline, crew competence and pre-planning, and is the single largest determinant of realised utilisation over a campaign. ONGC recorded that the teams performance reflected strong ownership, discipline and coordinated execution, and stated that it set a benchmark for the rig Jindal Supreme as well as for the Companys other rigs. The Company regards this benchmark as the operating standard to be sustained and further strengthened across the fleet.

IADC Safety Excellence Recognition

All five of the Companys operating rigs received Safety Excellence certificates from the IADC Incident Statistics Programme during the year, in recognition of sustained Lost-Time-Incident-free operations. The IADC Incident Statistics Programme is the drilling industrys principal international safety benchmarking mechanism, under which participating contractors report incident data on a common basis, allowing performance to be measured against a worldwide peer group rather than against internal targets alone. Recognition under the programme is therefore externally validated and comparable across operators and geographies.

Rig	LTI-Free Record	Achieved On
Jindal Supreme	9 years	19 September 2025
Jindal Explorer	4 years	20 September 2025
Virtue I	4 years	15 November 2025
Discovery I	3 years	03 January 2026
Jindal Star	2 years	09 April 2025

All five rigs continue to hold active and unbroken LTI-free records, confirming zero Lost Time Incidents across the entire operating fleet during the year. A nine-year unbroken record on Jindal Supreme is a particularly demanding achievement in offshore drilling, sustained across multiple crew rotations, rig moves, well types and equipment overhaul cycles, and is attainable only where safe working is embedded in day-to-day practice rather than treated as a compliance obligation.

These records rest on a consistent set of work practices: permit-to-work discipline governing every non-routine task; job safety analysis and pre-job toolbox discussion before each operation; stop-work authority vested in every person on board irrespective of rank; systematic reporting and investigation of near-misses and unsafe conditions so that precursors are addressed before they result in injury; planned, OEM-certified preventive maintenance of well-control and lifting equipment; regular emergency drills including well control, fire, abandonment and man- overboard scenarios; and structured competency assurance for crew joining or changing role. The Companys continuing low crew turnover reinforces each of these, since retained crews carry forward accumulated site- specific knowledge that no training programme can substitute.

Operating Performance

The Companys rigs continued to operate at high efficiency levels, with overall fleet efficiency for FY 2025-26 of 98.55%, reflecting the strength of the Companys maintenance and operating discipline. The financial performance for the year reflects the significant efforts made by the operating team to control costs and to implement innovative solutions to maximise revenue.

Fleet Position

The Companys fleet comprised six jack-up rigs as at 31st March 2026, of which five — Jindal Supreme, Jindal Explorer, Jindal Star, Virtue I and Discovery I — were deployed on charter during the year. Jindal Pioneer was acquired in March 2025 for a consideration of USD 75 million, and is currently in Lamprell yard in the United Arab Emirates. The rig has since received a three-year charter from ONGC.

4. Financial Performance

The financial performance of the Company for FY 2025-26, with comparatives for FY 2024-25, is summarised below.

Particulars (Rs. in crore)	FY 2025-26	FY 2024-25	Change(%)
Revenue from Operations	996.57	827.95	20.36
EBITDA	345.24	237.42	45.41
EBITDA Margin [%]	34.64	28.68	5.96 pp
Depreciation and Amortisation	150.62	89.12	69.01
Earnings Before Interest and Tax	240.40	204.68	17.45
Finance Cost	8.43	16.27	[48.19]
Net Worth	1,468.76	1,310.29	12.09

Note: Figures in brackets denote a decrease. pp denotes percentage points. The above figures are on a standalone basis and should be read together with the audited financial statements forming part of this Annual Report.

Discussion

Revenue from operations increased by 20.36% during the year to Rs. 996.57 crore, from Rs. 827.95 crore in the previous year.

EBITDA rose by 45.41% to Rs. 345.24 crore and the EBITDA margin improved by 5.96 percentage points to 34.64%, reflecting operating leverage on the higher revenue base together with the cost control and efficiency measures implemented during the year. This margin improvement was achieved notwithstanding continuing cost pressure on OEM spares, crew retention and regulatory compliance.

Depreciation and amortisation increased to Rs. 150.62 crore from Rs. 89.12 crore, principally on account of the capitalisation of the rig Jindal Pioneer acquired in March 2025. Finance costs reduced by 48.19% to Rs. 8.43 crore following the repayment of the Companys borrowings during the year. Earnings before interest and tax increased by 17.45% to Rs. 240.40 crore.

Net worth increased by 12.09% to Rs. 1,468.76 crore as at 31st March 2026. The Company repaid its long-term borrowings in full during the year and had no long-term debt outstanding at the year end, leaving the balance sheet well positioned to support future growth.

On a consolidated basis, total income for the year was Rs. 1,042.34 crore as against Rs. 884.33 crore in the previous year, profit before tax was Rs. 269.97 crore as against Rs. 263.47 crore, and profit after tax was Rs. 210.60 crore as against Rs. 215.90 crore.

The Board of Directors has recommended a dividend of 20%, being Rs. 1.00 per equity share of face value Rs. 5 each, for the financial year 2025-26, subject to the approval of the members at the ensuing Annual General Meeting.

The Company operates in a single reportable segment, namely offshore drilling and allied services, as identified in accordance with Ind AS 108 - Operating Segments. There is no change in the accounting treatment adopted by the Company during the year which differs from that prescribed in the applicable Indian Accounting Standards.

5. Key Financial Ratios

Details of significant changes in key financial ratios, being changes of 25% or more as compared with the immediately preceding financial year, together with the explanations therefor, are set out below.

Ratios	Explanation	FY 2025-26	FY 2024-25	Change	Change (%)	Note
Debtors Turnover	Net Sales / Avg Debtors	4.66	4.21	0.45	10.69	\u2014
Inventory Turnover	Net Sales / Avg Stock	15.44	15.90	[0.46]	[2.89]	\u2014
Interest Coverage Ratio	EBIT / Interest Expenses	28.53	12.58	15.95	126.79	1
Current Ratio	Current Asset / Current Liability	1.58	0.99	0.59	59.60	2
Debt Equity Ratio	Long-term Debt / Equity	0.00	0.05	[0.05]	[100.00]	3
EBITDA Margin [%]		34.64	28.68	5.96	20.78	\u2014
Net Profit Margin [%]		23.28	22.76	0.52	2.28	\u2014
Return on Net Worth [%]	Net Profit / Avg Net Worth	16.69	15.15	1.54	10.17	4

Notes:

Figures in brackets denote a decrease. pp denotes percentage points.

• Note 1 — Interest Coverage Ratio: the improvement reflects the substantial reduction in interest expense following the repayment of borrowings during the year, together with higher earnings before interest and tax.

• Note 2 — Current Ratio: the improvement reflects the significant reduction in current liabilities during the year, principally on settlement of amounts payable in respect of the acquisition of the rig Jindal Pioneer, partly offset by a reduction in current assets.

• Note 3 — Debt Equity Ratio: the Company repaid its long-term borrowings in full during the year and had no long-term debt outstanding as at 31st March 2026.

• Note 4 — Return on Net Worth: the improvement reflects higher profitability during the year, partly offset by the increase in the net worth base. The ratio is computed on the same basis as in the preceding financial year.

Return on Net Worth

Return on Net Worth for FY 2025-26 was 16.69% as against 15.15% in FY 2024-25. The improvement is attributable to higher profitability during the year, driven by increased revenue from operations, improved operating margins and a reduction in finance costs, partly offset by the increase in the net worth base.

6. Opportunities and Threats

6.1 Strengths

The Companys fleet comprises six jack-up rigs, purpose-built and maintained for Indian offshore conditions, following the strategic acquisition of the rig Jindal Pioneer in March 2025. Regular OEM-certified equipment maintenance, in-house engineering oversight and strong vendor relationships keep the fleet technologically current and operationally dependable, supporting timely delivery on charter commitments.

Overall fleet efficiency for the year of 98.55%, combined with an exemplary safety record and low employee turnover, continues to differentiate the Company from peers operating in more volatile international markets. No Lost Time Incident was recorded during the year, and all five operating rigs received Safety Excellence certificates from the IADC Incident Statistics Programme, with LTI-free records ranging from two to nine years. The Companys operating credibility with its principal customer is evidenced by the letter of appreciation received from ONGC in respect of the performance of the rig Jindal Supreme, and by the award of further multi-year charters for Jindal Explorer and Jindal Pioneer. The Company is free of long-term debt, which affords it flexibility to pursue opportunities as they arise.

6.2 Weaknesses

The Companys revenue remains heavily concentrated with a single customer, ONGC. Three of the Companys rig charters are scheduled to expire during FY 2026-27. This concentration exposes the Company to renewaltiming and re-tendering risk, particularly in light of the recent history of tender cancellations across the industry. However, in view of the Governments emphasis on increasing oil production and based on the current requirement for rigs, the Company is confident that it would be able to redeploy the rigs under new charters. Rising costs of maintenance, OEM spares, crew retention and regulatory compliance continue to weigh on margins even as charter rates gradually recover.

6.3 Opportunities

The Government of Indias continued emphasis on domestic energy security is expected to sustain and potentially expand demand for jack-up rigs in the Mumbai High and KG basin regions through FY 2026-27 and beyond. In particular, the Union Cabinet approved the Samudra Manthan National Offshore Exploration Scheme on 31st July 2026, with an outlay of Rs. 84,084 crore for implementation up to FY 2030-31. The scheme is Indias largest offshore exploration initiative to date and is designed to accelerate exploration in offshore, deepwater and ultra-deepwater areas through large-scale seismic surveys, exploratory drilling and the development of common offshore infrastructure, with the objective of de-risking offshore exploration, catalysing private investment and strengthening domestic production.

Charter rates in India, which have historically traded at a discount to global benchmarks, are expected to converge towards international levels as global oversupply eases, offering re-pricing upside on future contract renewals. New basin activity, including recent discoveries in the Andaman region, could open fresh drilling campaigns beyond the Companys traditional operating areas.

The Companys demonstrated ability to acquire, refurbish and re-contract rigs — as evidenced by Jindal Pioneer — positions it to bid competitively for additional ONGC tenders and to capture incremental opportunities .

6.4 Threats

The pattern of tender cancellations in recent years, spanning multiple jack-up tenders across the industry, continues to inject timing uncertainty into new contract awards, even as underlying demand fundamentals remain favourable.

The Companys near-total dependence on ONGC as a customer concentrates commercial and pricing risk; any shift in ONGCs procurement strategy or capital allocation could disproportionately affect the Company relative to more diversified global contractors.

A global oversupply of jack-up rigs, following large-scale rig releases by international operators, carries the risk of renewed rate pressure should surplus capacity migrate towards Asia-Pacific markets.

The continuing situation in the Middle East, and in particular disruption to shipping through the Strait of Hormuz, presents a risk to the timely mobilisation and deployment of the rig Jindal Pioneer, and more generally to the movement of rigs, equipment and spares.

7. Risks and Concerns

The Company has in place a risk management framework under which the principal risks to the business are identified, assessed and monitored, and mitigation measures are put in place and reviewed. The principal risks to which the Company is exposed, and the measures adopted to address them, are set out below.

• Customer concentration risk — substantially the whole of the Companys revenue is derived from a single customer. The Company seeks to mitigate this through consistent operating performance, qualification for a broad range of tenders, and maintenance of a fleet specified to the customers technical requirements.

• Contract renewal and re-tendering risk — charters are awarded for fixed terms and are subject to competitive re-tender on expiry, with the timing of awards outside the Companys control. The Company manages this through staggered contract expiries and early engagement in the tendering process.

• Day-rate risk — day rates are fixed for the contract term, so cost inflation during the term cannot be passed on, and rates on renewal are exposed to prevailing market conditions and to competitive pricing behaviour.

• Geopolitical and supply chain risk — the situation in the Middle East, including disruption to shipping through the Strait of Hormuz, affects the movement of rigs, equipment and spares, insurance costs and mobilisation timelines.

• Asset and operational risk — drilling operations are inherently hazardous and equipment-intensive. The Company mitigates this through planned maintenance, OEM-certified servicing, class and certification compliance, and comprehensive insurance cover.

• Human resource risk — the availability and retention of qualified offshore crew is critical to operations. The Company addresses this through structured training, career development and competitive terms of employment.

• Currency risk — a portion of the Companys revenues and costs are denominated in US dollars, exposing it to exchange rate movements. The Company follows a prudent hedging policy under which imported costs are covered from dollar revenues. The Company keeps track of foreign exchange movements and hedges its revenues in a profitable manner.

• Regulatory and compliance risk — the Company is subject to an extensive framework of maritime, environmental, safety and taxation regulation, and to the compliance requirements of its customer.

The Company continues to mitigate these risks through its India-specific fleet design, strong balance sheet, high operating efficiency and robust cost controls, positioning it to navigate short-term market volatility while capitalising on the offshore sectors positive medium-term trajectory.

8. Outlook

The market for jack-up rigs is expected to remain subdued over the next one to two years as the overhang of rigs released by international operators is absorbed, after which conditions are expected to improve. In India, the pace of recovery is expected to improve with gradual phasing out of old generation rigs & increased regulatory requirements supported over the medium term by the Samudra Manthan National Offshore Exploration Scheme.

9. Internal Control Systems and their Adequacy

The Companys internal control environment ensures adherence to policies and procedures, compliance with applicable laws and regulations, efficient conduct of operations, security of assets, prevention and detection of frauds and errors, timely remediation of deficiencies, accuracy and completeness of accounting records, and the timely preparation of reliable financial information.

The Company believes that internal controls are one of the key pillars of governance, providing a platform for management to operate within a framework of appropriate checks and balances. The Company has a robust internal control framework, established having regard to the nature, size and complexity of its operations and to the risks in the business. The framework comprises, inter alia, a well-defined organisation structure, defined roles and responsibilities, documented policies and procedures, and financial delegation of authority for various business activities. These policies are complemented by a management information and monitoring system which ensures compliance with internal processes as well as with applicable laws and regulations.

The Company has engaged an independent external audit firm responsible for providing assurance on compliance with operating systems, internal policies and legal requirements, and for suggesting improvements to systems and processes. The internal audit function monitors and evaluates the efficacy and adequacy of the internal control systems in the Company, and the audit is carried out across all functional areas. The internal audit function reports functionally to the Audit Committee of the Board, and key internal audit findings are presented to the Audit Committee at its quarterly meetings.

10. Human Resources and Industrial Relations

Human Resources serves as the strategic backbone of the Company, aligning its goals closely with overarching business objectives. The Company is dedicated to nurturing a diverse and inclusive talent pool, ensuring that the workforce reflects a wide range of backgrounds and perspectives. Continuous training and development is undertaken to enhance skills and competencies, extending to clear career paths and development frameworks that empower employees to chart their professional growth within the Company.

Capability building is delivered through a structured programme of workshops covering safety, the adoption of new technology in drilling and rig operations, and contemporary industry practices, so that personnel remain current with evolving technical and regulatory standards. Planned job rotation across functions and across rigs is used to broaden individual capability, build depth of cover in critical roles and develop the cross-functional understanding on which effective offshore operations depend.

The Company places particular emphasis on consistency of rig staff. Retaining crews on the same rig over extended periods preserves accumulated site-specific knowledge of equipment condition, well characteristics and operating routines, and is a significant contributor both to the Companys safety record and to its operating efficiency. This is supported by motivational programmes, structured recognition of individual and team contribution, and reward mechanisms that reinforce safe and disciplined working.

Human Resources strategies are also directed towards fostering high retention, recognising and rewarding employees contributions, and ensuring a working environment that promotes engagement and well-being. The principal focus areas are cultivating a robust talent pool, facilitating capability building, fostering career development, enhancing retention, promoting engagement and safeguarding employee well-being, all of which collectively contribute to the sustained success and growth of the Company.

The number of persons employed by the Company as at 31st March 2026 was 744. Industrial relations remained cordial throughout the year and there were no material developments on the industrial relations front.

11. Environmental, Social and Governance

The Companys strategic ambition is to drive sustainable growth and to become the jack-up drilling contractor of choice in its core operating regions for its customers, employees and shareholders. Its track record of safety and operational excellence supports long-term relationships with customers and suppliers, and its focus on sustainability supports long-term success, safeguarding the business against volatility.

The Companys strategic priorities are focused on jack-up operations, with reliability, safety and operational performance at the forefront of everything it does. Jindal Drilling strives to create an environment where no one gets hurt. The Companys goal is to develop long-term and mutually beneficial relationships with customers and suppliers, and to provide development opportunities for its people in support of their long-term career goals. The Company recognises the complex energy dilemma facing the world today: ensuring energy security, providing equitable access to energy particularly in emerging economies, and achieving environmental sustainability. It also recognises the difficulties of operating in an environment in which geopolitical uncertainties are increasing rather than being resolved.

The Companys focus on the health and safety of employees and of all persons on board its rigs is central to the success of its operations and to its long-term strategy. Providing a safe workplace is not only the Companys primary

responsibility to its employees but also a key driver of its long-term sustainability. As a drilling contractor, the Companys activities can have a substantial impact on the environment and on people; its operations are energy-intensive and have impacts on climate, pollution, biodiversity and ecosystems. The Company recognises that drilling operations can pose inherent risks related to health, safety and human rights, and that it is vital to maintain high standards of business conduct. The Company remains committed to minimising its impact on people and the environment by fostering safe and responsible operations, striving to reduce emissions, promote well-being and prioritise resource stewardship, so as to create lasting value for its employees, affected communities and the environment.

The Companys crews perform their services consistently with Company-wide policies, procedures and processes, ensuring that all operations are carried out efficiently, effectively and with the highest regard for safety and environmental compliance. The Company has sustainability-related goals for health and safety that go beyond ongoing regulatory compliance. It defines sustainability as achieving commercial profitability in a manner consistent with its fundamental ethical values and with respect for individuals, the environment and society. These goals are organisation-wide and are therefore primary to the services the Company provides.

Environmental practices certified under international standards

The Companys rigs are certified under the International Maritime Organizations MARPOL Convention in respect of the following:

• International Air Pollution Prevention

o Rigs are equipped with high-efficiency engines to reduce fuel consumption and emissions

o Fuel oil used has a sulphur content of less than 0.5%

• International Oil Pollution Prevention

o Rigs are fitted with oily water separators; all oil wastes are collected and sent onshore for disposal

• International Sewage Pollution Prevention

o Rigs are equipped with sewage treatment plants

• Waste management

o The Company is a registered importer under Extended Producer Responsibility

o Waste is segregated and disposed of through certified agencies. The Company has adopted strict guidelines for the disposal of waste, including plastic waste and oil waste, and systems are in place to monitor generation and disposal

The Company has identified four key areas of sustainability priority: health and safety; people and society; climate and environment; and responsible business. The Company recognises the responsibility of its business and of its sector to support the achievement of the United Nations Sustainable Development Goals. Its operations and material topics present particularly strong opportunities to have a meaningful and sustainable impact on the attainment of several of those Goals. The Company values engagement with its stakeholders, including customers, employees and regulatory bodies, in order to understand and meet their expectations regarding sustainability and strategy, and communicates its sustainability performance to them on an ongoing basis through various channels.

12. Cautionary Statement

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may constitute forward-looking statements within the meaning of applicable laws and regulations. These statements are based on certain assumptions and expectations of future events over which the Company exercises no control. Actual results could differ materially from those expressed or implied, on account of factors including but not limited to global and domestic economic conditions, crude oil price volatility, geopolitical developments including the situation in the Middle East, changes in charter hire rates, the tendering and procurement decisions of the Companys principal customer, the cost and availability of equipment and crew, exchange rate fluctuations, and changes in government regulations, tax laws and other statutes. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statement on the basis of any subsequent development, information or events, except as required by applicable law.

By the order of the Board For Jindal Drilling And Industries Limited

	DHARAM PAL JINDAL
Place: New Delhi	Chairman
Date: 7th August, 2026	DIN: 00405579