Stock Jumps 4% After Drilling 2 Oil Wells With Production Potential of Up to 100 BOPD

SYNOPSIS: The company drilled two oil wells in Gujarat with a peak output of 100 BOPD, strengthening domestic production, enhancing revenue visibility through market-linked pricing, and planning further expansion after better-than-expected results.

During Friday’s trading session, shares of a company involved in EPC services for oil & gas refineries, cement, fertilisers, petrochemicals, coal/gas-based power plants and more, surged nearly 3 percent on NSE, after the company reported an oil discovery update, where it holds a 66 percent revenue share in an ONGC-operated field.

With a market cap of Rs. 444 crores, shares of RBM Infracon Limited are currently trading in the green at Rs. 417.9 on NSE, up by over 1 percent, compared to its previous closing price of Rs. 413.35. The stock has delivered positive returns of over 6 percent in one year, and has gained by around 39 percent in just one month.

What’s the News

As per its latest disclosure to the NSE, RBM Infracon Limited has drilled 2 Wells in its PEC area at Nandej, Gujarat. The first well was spudded on 14th January 2026, followed by the second well on 14th February 2026. Both wells have been completed and are currently in the testing and production phase, demonstrating a combined peak production potential of up to 100 barrels of oil per day (BOPD), supporting domestic crude output and future field development. 

The first well was drilled to a depth of 1,763 meters and encountered two hydrocarbon-bearing sand intervals – Kalol-VIII and Kalol-IX. During the testing phase, it is currently producing nearly 25 BOPD from the Kalol-IX zone, with further optimisation expected to enhance output. The second well, drilled to a depth of 1,750 meters, also intersected the Kalol-VIII and Kalol-IX zones and is currently producing around 75 BOPD.

This development marks a significant milestone for the Nandej field, where RBM Infracon holds a 66 percent revenue share under a revenue-sharing contract with Oil and Natural Gas Corporation Limited. The performance of the second well has exceeded initial expectations, prompting the company to consider drilling additional wells to further maximise recovery from the oil reservoir.

From an economic perspective, crude oil produced from the Nandej field is supplied to ONGC under market-linked pricing, ensuring alignment with international crude prices. The increase in production is expected to contribute to higher domestic output for both RBM and ONGC, while also enhancing the company’s operational scale and long-term production visibility.

Financials & More

RBM Infracon Limited is primarily engaged in the business of construction, maintenance, and turnaround services for industries like oil & gas refineries, petrochemicals, fertilisers, gas cracker plants, coal/gas/WHR-based power plants, chemicals, cement, sugar plants, paper plants, irrigation and other allied sectors.

The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 176 percent, from Rs. 103 crores in H1 FY25 to Rs. 284 crores in H1 FY26. Likewise, its net profit more than doubled during the same period from Rs. 10 crores to Rs. 27 crores, representing an impressive rise of around 170 percent YoY.

As of H1 FY26, RBM Infracon reported an order book of around Rs. 4,531.26 crores, supported by execution experience across 87 completed projects and 17 ongoing projects.

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