New Delhi: State-owned Oil India Limited (OIL) on Tuesday reported an almost flat year-on-year net profit for the April–June quarter of FY 2025–26, impacted by a significant drop in crude oil prices. Despite the subdued financials, the company announced key operational developments, including a hydrocarbon discovery in Assam and the commencement of gas production from a Rajasthan block.
Net Profit Growth Muted by Falling Crude Prices
OIL’s consolidated net profit stood at Rs 2,046.51 crore in Q1 FY26, marginally up from Rs 2,016.30 crore in the same quarter last year, as per a company statement.
However, the standalone net profit sharply declined to Rs 813.48 crore, down from Rs 1,466.84 crore in Q1 FY25. The company attributed the decline to a steep 22% fall in crude price realization, which dropped from USD 84.89 per barrel to USD 66.20 per barrel.
Production Slightly Down, Key Operational Milestones Achieved
Oil and gas production volumes for the quarter were 1.680 million tonnes of oil and oil equivalent gas, compared to 1.689 million tonnes in the corresponding period last year.
Despite the marginal decline in production, OIL reported important developments–
- A hydrocarbon discovery at the Namrup-Borhat OALP block in Assam
- Commencement of gas production from the Bakhritibba Discovered Small Field (DSF) block in Jaisalmer district, Rajasthan
- These moves are expected to bolster the company’s reserves and future output.
NRL Maintains Strong Throughput
OIL’s subsidiary, Numaligarh Refinery Ltd (NRL), maintained strong operational momentum, with crude throughput at 7,99,000 tonnes in Q1 FY26, up from 7,64,000 tonnes a year earlier – a positive indicator of downstream performance despite upstream pricing pressures.
Outlook
While global crude prices remain volatile, OIL’s exploration-led strategy and consistent refinery performance provide a degree of stability. The company’s recent discovery and operational gains signal potential for recovery in subsequent quarters, contingent on pricing trends and production efficiency.
About Oil India
Oil India Limited (OIL) is a leading Indian state-owned energy company, holding “Maharatna” status, engaged in the exploration and production of crude oil and natural gas, with a legacy spanning over six decades. It also produces Liquefied Petroleum Gas (LPG) and is involved in the transportation of crude oil and refined petroleum products through pipelines, holding a significant share in the country’s total crude oil and natural gas production.
