Corporate Report     

Published: August 15, 2026
Updated: August 15, 2026

United Drilling Tools Ltd

OIL order points to multibagger future

In a big breakthrough for United Drilling Tools (UDTL) (BSE-522014, NSE-UNIDT), the leading manufacturer of specialised equipment for oil and gas has entered an elite club with the successful deployment of its premium connection casing pipes in one of Oil India’s (OIL) gas wells in Assam.

In early August, UDTL’s 7-inch premium-casing pipes running 5,000 metres deep were successfully installed in OIL’s Assam gas well. This deployment opens the high-margin hydrocarbon market for the Noida, Uttar Pradesh-based company.

Most oil and gas wells use pipes joined by industry-grade threads, complying with the American Petroleum Institute’s (API) standards. Premium connection casing, however, uses more advanced metal-to-metal seals to ensure that the pipes remain completely leak-proof in the most demanding wells under very high pressure and temperature. The success in the Assam oilfield turns UDTL into a major manufacturer of premium connections, expanding way beyond its traditional, API-graded product range.

UDTL FOR INVESTORS

HUGE MARKET

The OIL order boosts UDTL’s prospects multifold. It opens for the company a huge Rs 2,600-crore premium casing and tubing market that is expanding at an annual demand of 1.2 lakh tonnes. About half of this demand comes from national oil companies, while private explorers and oilfield service providers account for the remaining part of the consumption. Moreover, growing deepwater exploration and increasingly complex drilling conditions continue to push the demand towards premium, gas-tight connections.

UDTL enters this lucrative and niche market which is mostly served by a few global and domestic suppliers. The premium connections-maker is upbeat with the OIL order, which, it believes, will open the door for many more high-margin orders from ONGC, Vedanta (Cairn Oil & Gas), Reliance Industries and other top domestic and global oil & gas companies.

“This is a defining milestone for United Drilling Tools. We are proud that our premium connections have performed successfully in OIL’s gas field, establishing us as a credible Indian manufacturer in a segment long served by a handful of global suppliers. This achievement opens a substantial new growth avenue for the company. It has the potential to add a scale of business comparable to our existing operations while supporting the nation’s goal of self-reliance in critical energy infrastructure,” notes Jyoti Kumar Singh, General Manager (sales and marketing) at UDTL.

PATENTS APLENTY

Set up in 1985, the specialised equipment company has had a fascinating journey over the past four decades. It has 32 trademarks to its credit, of which 24 are registered in India, while the remaining eight are secured in other countries. It also has 14 design patents certified in its name, with nine of them registered in India and five others granted to it in the UK.

UDTL has been continuously expanding its product portfolio and intellectual property (IP) assets, which are aptly reflected in its balance sheet. For FY26, the company’s total revenues grew by 8.34% YoY at Rs 186.51 crore as it recorded a 24.75% surge in net profit to Rs 18.75 crore. The growth momentum has continued in Q1 FY27 with total revenues and net profit expanding by 7.29% and 42.61% YoY to Rs 34.60 crore and Rs 4.15 crore respectively.

For the June 2026 quarter, the company reported a standalone EPS of Rs 2.06 and an estimated BVPS of around Rs 138. Trading at Rs 209 by June-end, its trailing P/E ratio was around 22.3x and its P/B ratio stood at 1.5x. Compared to the broader oil drilling equipment industry’s P/E ratio of 42.30x, UDTL continues to trade at a discount despite its YoY growth in profit. With rising profits and bright prospects tied to the recent OIL order, UDTL looks set to deliver multibagger returns for long-term investors.

UDTL IN NUMBERS (Rs. in crore)