New Delhi: Oil India Ltd (OIL) reported a significant decline in its standalone financial performance for the second quarter of FY26, as weaker crude price realisation sharply hit upstream earnings. Standalone Profit after Tax (PAT) fell 43.08% to Rs 1,044.02 crore from Rs 1,834.07 crore a year earlier, even as revenue from operations remained broadly stable at Rs 5,456.72 crore. The Board also approved an interim dividend of Rs 3.50 per share.
Standalone Performance: Crude Price Slump Compresses Margins
OIL attributed the steep profit drop to a decline in crude price realisation, which fell 14% year-on-year from USD 79.33/bbl in Q2FY25 to USD 68.19/bbl in Q2FY26. Revenue from operations dipped marginally by 1.13%, while standalone crude and gas production remained largely stable at 1.652 MMTOE.
Standalone profit margins were significantly impacted:
- Net Profit Margin: 19.13%
- Operating Margin: 13.69%
Despite stable volume performance, the reduction in per-barrel realisation sharply lowered upstream profitability. Other income stood at Rs 830.70 crore, partially cushioning the profit decline but insufficient to offset the impact of weaker crude prices.
Consolidated Results: Refinery Operations Boost Group Earnings
While standalone earnings weakened, consolidated results reflected strength due to robust performance by Numaligarh Refinery Ltd (NRL). Consolidated turnover rose 12.78% to Rs 9,175.41 crore, supported primarily by NRL’s strong throughput and 100.38% capacity utilisation.
Key consolidated indicators:
- Consolidated PAT: Rs 1,643.81 crore
- Consolidated Operating Margin: 17.79%
- Consolidated Net Profit Margin: 17.92%
NRL posted Rs 6,442.77 crore in segment revenue, driving consolidated segment revenue before eliminations to Rs 11,899.49 crore. The downstream segment played a stabilising role, offsetting the volatility seen in upstream operations due to price fluctuations.
Segment-wise Trends: Upstream Pressure vs Downstream Strength
Standalone Segment Revenue (Q2FY26):
- Crude Oil: Rs 3,512.25 crore
- Natural Gas: Rs 1,418.65 crore
- Pipeline Transportation: Rs 444.87 crore
Consolidated Segment Revenue (Before Eliminations):
- Refinery Products: Rs 6,442.77 crore
- Crude Oil: Rs 3,512.25 crore
- Natural Gas: Rs 1,418.65 crore
- Pipeline Transportation: Rs 444.87 crore
Segment profits reflected the widening performance gap, with refinery operations providing a critical lift to group-level earnings.
Provisions and Exceptional Charges Weigh on Profit
OIL’s quarterly profitability was also affected by several provisions:
- Rs 44.36 crore penalty for unfinished work in an overseas block in Gabon
- Rs 187.53 crore impairment linked to the same project
- Rs 210.24 crore set aside for disputed service tax and GST on royalty, taking cumulative provisions to Rs 4,299.49 crore
These expenses added downward pressure on already strained standalone earnings.
Operational and Strategic Developments
The quarter witnessed important developments across OIL and its subsidiaries:
- NRL launched India’s first bamboo-based 2G bioethanol plant, marking a milestone in the company’s biofuels roadmap.
- Mechanical completion was achieved for the upgradation of the Numaligarh–Siliguri Product Pipeline (NSPL), enhancing product evacuation capabilities.
- The force majeure on OIL’s 4% interest in the Area-1 Offshore LNG Block in Mozambique—in place since May 2021—was lifted in November 2025, opening possibilities for renewed project activity and future monetisation.
About Oil India
Oil India Limited (OIL) is a Navratna PSU under the Ministry of Petroleum & Natural Gas, Government of India, and the second-largest national upstream oil and gas company. Headquartered in Duliajan, Assam, OIL has played a pivotal role in India’s energy sector through exploration, production, and transportation of crude oil and natural gas, particularly across the Northeast.
