Taking one year drop and preparing for the JEE Advanced again will be beneficial. Here I am sharing one of my cousin’s experiences which may help in deciding.
The gist of all of this is that if you or anyone, who sincerely believes that he/she is capable of something more, something greater and they are not what the results are reflecting then there is no point in settling with what you are getting. Don’t listen to someone who says college does not matter. College matters, not the name but the environment, the professors, the culture, and in many other ways.
The experience I shared may not the best example for this case, but many had worse results in the first attempt but did better after taking a year’s drop.