Oil India’s Standalone Profit More Than Doubles to ₹2,259 Crore in Q2

Synopsis

Oil India's standalone profit after tax jumped 116% year-on-year to ₹2,259 crore in the September quarter due to increased crude oil production by 20% and realisations by 35% to $92.24 per barrel. The consolidated profit increased by 53% to ₹2,521crore. The board had proposed an interim dividend of ₹7 per share and the first-half standalone profit was a record high of ₹5,130 crore. The Numaligarh refinery also saw a steeply improved refining margin.

Oil India's PAT jumped 116% to ₹2,259 crore in Q2 FY27 as against ₹1,044 crore a year ago. The company said that the rise was primarily due to a 20% increase in crude oil production and a 35% growth in realisation, which increased from the $68.19 a barrel rate to $92.24 a barrel.

Production and prices

Production of crude oil from mature oilfields was 1.021 million metric tonnes, compared with 0.848 MMT during Q2 FY26. Upward trend in the realisation is linked with the crude price market: Brent has been trading in the $90s throughout the quarter and this month.

The results and the refinery are put together

The consolidated profit after tax increased by 53% to ₹2,521 crore from ₹1,644 crore while first-half consolidated profit increased 77% to ₹6,548 crore. The growth difference between standalone and consolidated growth is attributable to the growth of subsidiaries and associates.

In the first-half, the capacity utilisation of the subsidiary, Numaligarh Refinery stood at 106.26%, gross refining margin of the subsidiary improved to $28.24 per barrel from $7.73 and distillate yield was at 87.15%.

Dividend and base effect

The board recommended for the interim dividend of ₹7 per fully paid share of ₹10. A year ago, the company had reported a loss of 43.1% in stand-alone profit for the quarter, posting an earnings of ₹3.50 per share. It is a low base effect, which would magnify the year-on-year percentage.

Outlook

Now the next test is to see if production increases can be sustained as prices back down. In November, Brent has dropped approximately 17% to 20% – and if this continues, it will limit realisations in the next few quarters.