Aban Offshore Limited (AOL) stands as the largest private player in India's offshore drilling industry, operating as part of the Aban Group. The company was promoted by Aban Constructions Private Limited in collaboration with Chiles Offshore Inc, USA, an offshore drilling company in the Gulf of Mexico. Established in 1986 by M.A. Abraham, AOL has evolved into India's largest offshore drilling contractor in the private sector and holds ISO 9001:2000 accreditation, offering world-class drilling and oil field services for offshore exploration and production of hydrocarbons to the oil industry in India and abroad.
The company provides comprehensive offshore drilling and production services in exploration, development, and production of oil and gas. With its headquarters based in Chennai, India, Aban Offshore has established itself as a significant player in the energy services sector, catering to both domestic and international markets.
Aban Offshore owns and operates 7 offshore drilling rigs, drill ships, and a floating production facility called 'Tahara'. The company owns and operates various offshore drilling rigs, jack-up rigs, semi-submersible rigs, drill ships, and floating production units. The company's fleet represents a substantial investment in offshore drilling technology and equipment, positioning it to serve major oil and gas exploration projects.
The company has a rich operational history spanning nearly four decades. It started out with two imported jack-up drilling rigs, Aban I and Aban II, for ONGC. In 1989, it received its first manning and management contract from ONGC for Sagar Uday, and the company diversified by entering oil-related areas. Over the years, AOL has expanded its fleet and capabilities through strategic acquisitions and partnerships.
AOL has also diversified into renewable energy, having established wind power generation facilities. The company set up a 2 MW wind power plant in Muppandal and Kayathar in Tamil Nadu and commissioned 62 wind turbines for its enhancement in business.
As of recent market data, Aban Offshore has a market capitalization of ₹294 crore, which has decreased by 20.3% over the past year. The company's financial performance has faced challenges in recent quarters. On a consolidated basis, Aban Offshore reported a loss of ₹259.84 crore on a total income of ₹120.86 crore for Q4 FY2025, while for the year ended 2024, the company posted a loss of ₹1,317.84 crore on a total income of ₹399.67 crore.
The company's revenue performance shows mixed trends across quarters. Sales rose 22.82% to ₹128.43 crore in Q1 FY2025 compared to ₹104.57 crore in the previous year quarter. However, the company has delivered a poor sales growth of -13.4% over the past five years.
- Market Cap: ₹294 crore (as of July 2025)
- Revenue (FY2024): ₹476 crore
- Net Loss (FY2024): ₹889 crore
- Q4 FY2025 Revenue: ₹120.86 crore
- Q4 FY2025 Net Loss: ₹259.84 crore
- Q1 FY2025 Revenue: ₹128.43 crore
- Q1 FY2025 Net Loss: ₹237.67 crore
The promoter holding in Aban Offshore stands at 46.0%. The company's leadership includes P Venkateswaran as chairman and Reji Abraham as managing director. The promoters have pledged 8.91% of the total equity as of December 2024, with the current promoter pledging standing at 19.37%.
The company faces significant financial challenges that investors should be aware of. As of June 30, 2025, Aban Offshore has defaulted on ₹711.55 crore on loans and unlisted debt securities. Additionally, ₹281 crore of Non-Convertible Redeemable Preference Shares (NCRPS) have not been redeemed since 2014, and ₹20 crore of unlisted shares are under suspension.
The company carries contingent liabilities of ₹1,749 crore. Aban Offshore has a low interest coverage ratio, indicating challenges in servicing its debt obligations from operational earnings.
Aban Offshore operates in the Energy sector under the Oil & Gas - Equipment & Services sub-sector. Despite being the largest private offshore drilling contractor in India, the company faces intense competition in the energy services market. The offshore drilling industry is capital-intensive and cyclical, heavily dependent on oil and gas exploration activities and commodity price trends.
The company's operational efficiency has shown some improvement, with debtor days improving from 163 to 62.0 days, indicating better working capital management and faster collection of receivables.
Aban Offshore Limited represents a significant player in India's offshore drilling sector, with substantial operational capabilities and infrastructure. However, the company currently faces considerable financial challenges that potential investors should carefully evaluate alongside its market position and operational strengths in the energy services industry.
