United Drilling Tools Secures Rs 56.4 Million Offshore Contract from Halliburton

United Drilling Tools Ltd (UDTL), a leading manufacturer of high-performance drilling equipment, has announced the receipt of a new contract valued at Rs 56.4 million from Halliburton Offshore Services Inc. The order, confirmed on August 21, 2025, marks another strategic win for UDTL in the global oilfield services market and reinforces its position as a trusted supplier of precision-engineered tools for offshore exploration and production.

The contract involves the supply of specialized drilling and completion equipment tailored for offshore operations, with delivery scheduled over the next two quarters. Halliburton’s selection of UDTL reflects the Indian company’s growing reputation for quality, reliability, and adherence to international standards.

Key highlights from the contract announcement

- United Drilling Tools Ltd receives Rs 56.4 million order from Halliburton Offshore Services  
- Contract covers supply of offshore drilling and completion tools  
- Delivery expected in phased batches over Q3 and Q4 FY26  
- Order strengthens UDTL’s export portfolio and global client base  
- Halliburton’s repeat engagement signals long-term supplier confidence  

Scope of the contract and product specifications

While specific product details remain confidential, the order is understood to include high-precision wireline winch units, casing centralizers, and hydraulic power packs designed for offshore rigs. These tools are critical to well integrity, pressure control, and efficient hydrocarbon recovery in deepwater environments.

- Wireline winch units for logging and intervention operations  
- Casing centralizers to ensure proper cementing and borehole alignment  
- Hydraulic systems for controlled deployment and retrieval of downhole tools  
- Equipment to be manufactured at UDTL’s Noida and Dehradun facilities  

Strategic relevance and market positioning

This contract adds to UDTL’s growing list of international clients, which includes Schlumberger, Baker Hughes, and Weatherford. The company has been steadily expanding its footprint in the Middle East, Southeast Asia, and North America, with offshore orders contributing a rising share of its revenue mix.

- Offshore segment now accounts for over 35 percent of annual revenue  
- Export contribution expected to exceed Rs 100 crore in FY26  
- Strategic focus on high-margin, customized equipment for global majors  
- Halliburton’s repeat orders reflect UDTL’s operational excellence  

Financial impact and shareholder sentiment

The Rs 56.4 million order is expected to be margin-accretive and contribute to UDTL’s topline in the second half of FY26. The company has maintained a debt-free balance sheet and reported a 12.3 percent year-on-year increase in net profit for Q1 FY26. Investors responded positively to the announcement, with the stock rising 3.1 percent intraday on the BSE.

- Q1 FY26 net profit: Rs 11.2 crore (+12.3 percent YoY)  
- EBITDA margin: 28.6 percent, supported by operational efficiency  
- Stock closed at Rs 267.40, up 3.1 percent post-announcement  
- Market capitalization stands at approximately Rs 1,050 crore  

Operational capabilities and delivery timeline

UDTL’s manufacturing units are equipped with CNC machining, robotic welding, and advanced testing facilities to meet the stringent requirements of offshore clients. The company has confirmed that production for the Halliburton order has already commenced, with quality assurance protocols aligned to API and ISO standards.

- Production initiated at Noida and Dehradun plants  
- Quality checks include hydrostatic testing, ultrasonic inspection, and load simulation  
- Delivery to be completed in two phases by January 2026  
- Logistics coordinated through UDTL’s export division and Halliburton’s offshore hubs  

Looking ahead

With the Halliburton contract secured, United Drilling Tools Ltd continues to build momentum in the offshore drilling space. The company’s focus on innovation, precision engineering, and global partnerships positions it well for future growth, especially as energy companies ramp up exploration in deepwater and ultra-deepwater zones.

Sources: Business Standard, Economic Times Markets, United Drilling Tools Ltd exchange filings.

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