OIL - Oil India

📊 NSE: OIL 🏢 Oil Drilling / Allied Services 📅 Last Updated: 12/14/2025 10:40

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY25 stood at INR 31,975 Cr, a marginal 0.2% growth from INR 31,904 Cr in FY24. Standalone revenue for Q2 FY26 was INR 5,456 Cr, growing 9% quarter-on-quarter, though Q1 FY26 consolidated revenue of INR 7,929 Cr was down 2.3% YoY from INR 8,120 Cr.

Geographic Revenue Split

Primary revenue is domestic, centered in Northeast India (Assam-Arakan Basin). International operations span 7 countries including Gabon and Bangladesh, though these currently contribute less to the top line and are subject to exploration write-offs.

Profitability Margins

Consolidated PAT for FY25 was INR 7,040 Cr (22% net margin), up from INR 6,980 Cr in FY24. Standalone PAT for Q2 FY26 was INR 1,044 Cr, reflecting 28.8% growth quarter-on-quarter.

EBITDA Margin

Consolidated PBILDT margin was 41.86% in FY25 (INR 13,615 Cr) compared to 43.50% in FY24. Q1 FY26 margin moderated to 29.65% due to lower crude realizations and reduced Gross Refining Margins (GRM) of USD 5.02/bbl.

Capital Expenditure

Planned capex of INR 41,132 Cr for NRL refinery expansion and a new polypropylene plant. Routine E&P capex was INR 7,201 Cr in FY25, up 22% from INR 5,900 Cr in FY24.

Credit Rating & Borrowing

Maintains a CARE AAA; Stable rating. Overall gearing increased to 0.57x in March 2025 from 0.46x in March 2024 due to debt-funded expansion at NRL. Total debt/PBILDT stood at 2.24x in FY25.

⚙️ Operational Drivers

Raw Materials

Crude oil (for refining segment) and exploration consumables (bits, chemicals, casing pipes) for E&P activities.

Import Sources

Domestic sourcing from Assam and Rajasthan; international sourcing from Gabon and other overseas participating interests.

Key Suppliers

Self-sourced through E&P operations and GoI-allocated blocks; equipment supplied by global oilfield service providers.

Capacity Expansion

NRL refinery expanding from 3 MMTPA to 9 MMTPA by September 2026. Domestic exploration acreage increased 58% to 92,888 sq km in FY25.

Raw Material Costs

E&P production cost is efficient at approximately USD 32-34 per barrel of oil equivalent, representing roughly 40-50% of realization values.

Manufacturing Efficiency

NRL refinery operates with a high distillate yield and a Nelson Complexity Index of 9.20, making it one of India's most efficient units.

Logistics & Distribution

Operates a 1,157 km trunk pipeline for crude oil transportation from fields to refineries.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Targeting 4 MMTPA crude oil and 5 BCMPA natural gas production by FY28. Strategy involves cumulative drilling of 237 wells (FY21-FY25) and a debt-funded INR 41,132 Cr expansion of NRL to triple refining capacity.

Products & Services

Crude oil, Natural Gas, LPG, Petrol (MS), Diesel (HSD), and Polypropylene.

Brand Portfolio

Oil India Limited (OIL), Numaligarh Refinery Limited (NRL).

New Products/Services

Launching a 360 KTPA Polypropylene plant integrated with the NRL expansion to diversify into petrochemicals.

Market Expansion

Expanding domestic exploration to 62 operating blocks and international presence in 7 countries including participating interests in oil/gas blocks.

Market Share & Ranking

Second-largest national oil company in India; contributes 11-13% of India's crude oil and 9% of natural gas production.

Strategic Alliances

Holds a 69.63% stake in NRL and a 5.16% equity stake in Indian Oil Corporation Limited (IOCL).

🌍 External Factors

Industry Trends

Industry is shifting toward integrated energy players; OIL is positioning itself by expanding refining capacity by 200% and targeting net-zero operational emissions by 2040.

Competitive Landscape

Operates as a dominant player in Northeast India with ONGC as the primary national competitor in the E&P segment.

Competitive Moat

Moat is sustained by majority GoI ownership (56.66%), strategic importance to India's energy security, and a 50% excise duty exemption for its Northeast refining operations.

Macro Economic Sensitivity

Highly sensitive to global crude prices; realizations expected to be range-bound at USD 62-65/bbl over the medium term.

Consumer Behavior

Increasing domestic demand for natural gas is driving the company to ramp up production toward its 5 BCMPA target.

Geopolitical Risks

Operations in 7 countries expose the company to resource nationalization risks and political unrest in overseas blocks.

⚖️ Regulatory & Governance

Industry Regulations

Operations governed by the Ministry of Petroleum & Natural Gas; subject to APM pricing for gas and GoI control over block allocations.

Environmental Compliance

Committed to Net-Zero carbon by 2040; implementing 'Project KAVACH' for safety and environmental awareness.

Taxation Policy Impact

Benefits from 50% excise duty exemption in the North-East; subject to windfall tax (Cess) on crude oil production during high-price cycles.

Legal Contingencies

Reported non-compliance with SEBI LODR Regulation 17(1) regarding the required number of Independent Directors on the Board, currently under Ministry review.