United Drilling Tools Reports Record Sales Amid Rising Interest Expenses and Low Receivables Turnover

United Drilling Tools has recently undergone a financial trend adjustment, reflecting a more stable performance in its latest quarterly results for September 2025. The company reported its highest net sales at Rs 55.60 crore, alongside a peak in PBDIT at Rs 9.11 crore and a profit before tax (PBT) of Rs 6.99 crore. Additionally, the profit after tax (PAT) reached Rs 5.75 crore, with earnings per share (EPS) also at a record high of Rs 2.83.
However, challenges remain for United Drilling. The interest expense for the first nine months has surged to Rs 3.35 crore, marking a significant growth of 117.53%. Furthermore, the debtors turnover ratio stands at a low of 1.41 times, indicating potential issues in managing receivables. The dividend per share (DPS) is also at its lowest, recorded at Rs 1.80.

In terms of market performance, United Drilling's stock has shown varied returns compared to the Sensex. Over the past week, the stock returned 2.80%, outperforming the Sensex's 1.43%. However, on a year-to-date basis, the stock has declined by 22.16%, contrasting sharply with the Sensex's 8.02% gain. Despite these fluctuations, the company has demonstrated resilience over a longer horizon, with a remarkable 730.68% return over the past decade, significantly outpacing the Sensex's 229.57%.