Oil India — Q3 FY26 earnings call

Call held 11 Feb 2026

Management summary

Oil India reported a resilient Q3 FY26 performance driven by strong operational execution and significant progress in upstream and downstream projects. Crude oil production saw a decade-high daily rate, and NRL achieved robust refining margins and capacity utilization. The company is aggressively pursuing exploration and development, with record drilling targets. However, lower crude oil realizations and increased contractual costs impacted overall profitability, though the company remains focused on long-term value creation and strategic expansion.

Highlights

  • Crude oil production for Q3 FY26 increased by 1.18% QoQ to 0.858 MMT, with daily production ramping up to 9,861 metric tons, highest in a decade.

  • NRL achieved 100.31% capacity utilization and 86.8% distillate yield in Q3 FY26, with gross refinery margin (excluding excise duty) at $16.27 per barrel, up 54% QoQ.

  • Significant progress on pipeline projects: Numaligarh-Siliguri product pipeline achieved mechanical completion, Duliajan-Numaligarh pipeline expansion to 2.5 MMTPA expected by April 2026.

  • Aggressive exploration and development drilling: 62 wells completed by Q3 FY26, targeting 75+ wells for FY26 and 100 wells for FY27, highest ever for Oil India.

  • Rajasthan field production significantly increased from 100-400 barrels/day to 1,000 barrels/day.

Concerns

  • Average crude oil price realization for 9M FY26 declined by 17.16% to $65.73 per barrel from $79.35 per barrel in the previous 9 months, impacting operating revenues.

  • Contractual costs increased due to deeper drilling, more rigs, and extensive seismic data acquisition, with Q3 FY26 seismic costs at INR579 crores and 9M FY26 at INR1,150 crores.

  • Gas sales experienced minimum de-growth due to reduced offtake from major customers, although shutdowns have now been lifted.

Key financials

  1. Consolidated Revenue ₹27,036.78 Cr
  2. Consolidated EBITDA ₹9,298.62 Cr
  3. Consolidated PAT ₹5,126.21 Cr
  4. Standalone Operating Revenue ₹4,916 Cr
  5. Standalone Operating Revenue ₹15,385 Cr
  6. Standalone PAT ₹808.31 Cr
  7. Standalone EPS ₹16.39
  8. EBITDA Margin 34% -2.5%QoQ
  9. Combined O&G Production 1.659 MMTOE
  10. Combined O&G Production 4.991 MMTOE
  11. Crude Oil Production 0.858 MMT +1.2%QoQ
  12. Natural Gas Production 0.801 bcm
  13. Crude Oil Realization 62.84 $/bbl -14.7%YoY
  14. Crude Oil Realization 65.73 $/bbl -17.2%YoY
  15. Natural Gas Price 6.65 $/MMBtu +1.4%YoY

What they filed

Q1 FY27: revenue up 57.7%, net profit up 96.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue7,247 8,337 8,808 7,929 8,394 +16%8,330 −0%9,293 +6%12,503 +58%
EBITDA2,536 2,542 2,588 2,351 2,303 −9%2,287 −10%3,281 +27%5,793 +146%
Net profit2,069 1,457 1,497 2,047 1,644 −21%1,436 −1%2,424 +62%4,027 +97%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Numaligarh Refinery Limited (NRL)
    ₹6,526 Cr Operating Revenue₹19,249 Cr Operating Income100.3% Capacity Utilization86.8% Distillate Yield16.27 $/bbl Gross Refinery Margin (GRM)₹1,302 Cr EBITDA₹867 Cr PAT

Capital allocation

high confidence
  • Capex ₹8,800 Cr Raised — to supplement efforts for production, given Q3 numbers
    • Exploration and development drilling (deeper wells, more rigs, seismic data acquisition)
    • NRL total project capex (refinery and petchem) ₹45,000 Cr
    • NRL FY26 capex outgo ₹8,000 Cr
    • NRL Polypropylene unit capex ₹7,200 Cr
    Sabri Hazarika: "I think 9 months stand-alone capex is somewhere around INR8,500 crores, so which is in line with the full year guidance. So, for this year, would we be overshooting the guidance?" Ranjit Rath: "The more we do the activity, the more the capex that you would appreciate. We would we had planned a certain amount of capex, and we would actually surpass that number this year. That is actually to supplement our efforts for production. So, the number that we have indicated for '25-'26 is INR8,800 crores, but given the numbers that we have seen yesterday as part of our Q3, it would be increasing." Bhaskar Jyoti Phukan: "This year, capex outgo so far has been around INR6,000 crores, and we will end the year with INR8,000 crores. And our capex total capex, both the refinery and petchem put together is INR45,000 crores." Ranjit Rath: "Now as far as the capex is concerned in terms of NRL, so far, we have done a debt of about INR16,000 crores, if my numbers are correct. That has been already drawn. And as far as the overall capex is concerned, we are looking at INR34,000 crores as far as NREP is concerned. And how much is the equity, let me other total is INR45,000 crores as a ballpark number." Ranjit Rath: "Actually, after next year, we don't foresee any major capex. The capex that will spread over beyond next year is the polypropylene unit, which would actually be at the peak. And polypropylene unit is about INR7,200 crores."
  • Debt Net ₹34,000 Cr
    Ranjit Rath: "About INR16,000 crores." Bhaskar Jyoti Phukan: "Yes. It is around INR16,000 crores. And by the time we end all the projects, including petchem, it should be around INR25,000 crores to INR26,000 crores." Somaiah V.: "So, what would be the net debt?" Ranjit Rath: "Net debt, I'm sorry, INR34,000 crores." Ranjit Rath: "Yes. Let me give you a breakup. It is INR16,000 crores at NRL level. It is INR16,000 crores at Oil India level. The INR16,000 crores in Oil India level is primarily the external commercial borrowings for our overseas assets."
  • Dividend ₹7/share (interim)
    We are pleased to inform you that the company has declared a dividend of INR7 per fully paid equity shares during our period closing of 31st of December 2025.
  • Liquidity Cash $300 Mn Retained money from Russian assets held in Moscow branch.
    Ranjit Rath: "The range, the order of magnitude of retained money in Moscow branch is about $300 million."

Guidance & targets

Production Volume

  • Combined Oil & Gas Production Production Volume · FY27 · Medium confidence 7.5 MMTOE
    The number that we are looking at is this year, we will achieve to surpass last year's production, '24-'25 production. Year after, we are looking at a number, so I don't want to generally don't speculate. This is our internal estimate of likely prospects that we would target and bring it to the surface will be hovering around -- total production will be hovering around 7.5 MMTOE. And going forward, it will be 8 MMTOE.

    — Ranjit Rath

  • Combined Oil & Gas Production (with evacuation) Production Volume · FY28 · Medium confidence 8.5 MMTOE
    And should there be the evacuation in place, we would aspire to achieve 8.5 MMTOE FY 2028.

    — Ranjit Rath

  • Crude Oil Production Production Volume · FY27 · Medium confidence 4 million metric ton
    Crude production -- if we are able to drill 100, and I can assure you we are going to drill 100 wells, we would aspire to touch 4 million next year.

    — Ranjit Rath

  • Crude Oil Production (conservative) Production Volume · FY27 and FY28 · Medium confidence 3.8-4.0 million metric ton
    But on a conservative side, we are planning or we have indicated that we would do 3.8 in 2027 and 2028, we'll achieve 4. ... Therefore, the outlook that we have given to ourselves is in the order of 3.8 and 4.0.

    — Ranjit Rath

Wells Drilled

  • Total Wells Drilled Wells Drilled · FY26 · High confidence 75+ wells
    This year, by this time, we have already completed 62 wells... but we are going to close the year by a number which will be the highest ever in the history of Oil India Limited, that will be 75-plus wells with additional possibly highest ever or near highest ever workover operations.

    — Ranjit Rath

  • Total Wells Drilled Wells Drilled · FY27 · High confidence 100 wells
    I would share with you that while this year, we are going to achieve 75 wells, the next year target is 100 wells as part of our strategy for both exploration and development wells.

    — Ranjit Rath

NRL Capacity Utilization

  • NRL Throughput NRL Capacity Utilization · Q4 FY27 · Medium confidence 4 million metric ton
    Maybe we will end the year FY '27 with a 4 million capacity throughput.

    — Bhaskar Jyoti Phukan

  • NRL Daily Capacity Utilization NRL Capacity Utilization · Q4 FY27 · High confidence 50%
    So, to summarize, in Q4 of FY '27, we will be at 50% daily capacity utilization and going up to 100% by Q2 of FY '28...

    — Bhaskar Jyoti Phukan

  • NRL Daily Capacity Utilization NRL Capacity Utilization · Q2 FY28 · High confidence 100%

    — Bhaskar Jyoti Phukan

NRL Petrochem Project

  • Petchem Project Full Capacity NRL Petrochem Project · Q2 FY29 · High confidence Full capacity
    petchem will start by close of FY '28 and we will be achieving its full capacity by, say, Q2 of FY '29.

    — Bhaskar Jyoti Phukan

Pipeline Commissioning

  • Duliajan-Numaligarh Pipeline Expansion Pipeline Commissioning · April 2026 · High confidence Commissioned
    The Duliajan-Numaligarh pipeline expansion from 1 million to 2.5 million has already achieved mechanical completion on 15 November, and we expect to commission the expanded pipeline by April 2026.

    — Ranjit Rath

  • Numaligarh-Siliguri Product Pipeline Expansion Pipeline Commissioning · Q3 FY26 · High confidence Mechanical completion achieved
    The Numaligarh-Siliguri product pipeline expansion from 1.72 million metric ton per annum to 5.5 million metric ton per annum has already achieved mechanical completion, and we are in the process of completing the commissioning process.

    — Ranjit Rath

  • Paradip-Numaligarh Crude Oil Pipeline Pipeline Commissioning · Q1 FY27 · High confidence Ready for commissioning
    Concurrently, the Paradip-Numaligarh crude oil pipeline, which will supply imported crude to NRL has also achieved about 90% physical progress and will be ready for commissioning by Q1 of FY 2027.

    — Ranjit Rath

  • Duliajan feeder line for IGGL Pipeline Commissioning · 18 months post-approval · Medium confidence Commissioned
    It will take about 18 months because it does not entail any major river crossing. So that would actually give us an opportunity of evacuating 3.5 million standard cubic meters of gas per day.

    — Ranjit Rath

Capex

  • Standalone Capex Capex · FY27 onwards · Medium confidence INR9,200 crores plus

    Previously INR8,800 crores → INR9,200 crores plus

    Yes, it is INR8,800 crores. Going forward, it will hover around the same number or it will catch base about INR9,200 crores plus.

    — Ranjit Rath

What to watch in Q4 FY26

Duliajan-Numaligarh Pipeline Commissioning

April 2026
Current Mechanical completion achieved
Target Commissioned

Why it matters

Crucial for expanding gas evacuation capacity and supplying NRL.

The Duliajan-Numaligarh pipeline expansion from 1 million to 2.5 million has already achieved mechanical completion on 15 November, and we expect to commission the expanded pipeline by April 2026.

Risks & concerns

  • Crude oil price volatility

    medium

    Crude prices and realizations can fluctuate meaningfully in short time spans, driven by global events and sentiments.

    Management acknowledged

  • Gas evacuation challenges

    medium

    Natural gas production is contingent on feeder line availability and evacuation infrastructure, with some lines awaiting government approval.

    Both acknowledged

  • Increased contractual costs

    medium

    Costs are rising due to deeper drilling, increased rig deployment, and extensive seismic data acquisition for exploration and development.

    Management acknowledged

  • Geopolitical risks affecting Russian assets

    medium

    Retained money from Russian assets ($300 million) is held in a Moscow branch, indicating potential access or transfer challenges.

    Management acknowledged

Q&A highlights

8 direct
NRL throughput post-expansion and stabilization timeline Direct
Maybe we will end the year FY '27 with a 4 million capacity throughput. ... So, we will try to achieve 4 million metric ton by the last quarter of FY 2027.

Clarifies the ramp-up schedule for NRL's expanded capacity, indicating a gradual increase to 4 MMTPA by Q4 FY27.

Asked by Probal Sen

Overall volume growth targets and gas monetization pipeline timelines Direct
This year, by this time, we have already completed 62 wells... will be the highest ever in the history of Oil India Limited, that will be 75-plus wells... next year target is 100 wells... total production will be hovering around 7.5 MMTOE. And going forward, it will be 8 MMTOE.

Provides specific drilling targets and combined oil & gas production guidance for FY27 and FY28, outlining the strategy for volume growth.

Asked by Probal Sen

Increase in contractual costs and new exploration efforts Direct
One part of the contract cost increase is the drilling of deeper wells. Second, we have enhanced our drilling portfolio and our workover portfolio... Third, while we need to work on all this, we also need to supplement these release of locations by additional studies and extensive seismic data acquisition processing and interpretation.

Explains the drivers behind rising contractual costs, linking them to strategic investments in deeper and more extensive exploration and development activities, including new basins like Andaman Nicobar and Kerala-Konkan.

Asked by Vivekanand S.

Investment in AP refinery and E&P production guidance Direct
As far as our planned investment participation in the AP refinery, which is being steered by BPCL, we foresee that this will be a high-end refinery petrochemical complex... currently, it is in the range of 10% with a likely possibility, should there be any interest, we can enhance it.

Details Oil India's strategic interest and potential stake in the upcoming 12 MMTPA AP refinery-petrochemical complex, highlighting diversification efforts.

Asked by Sarthak Tita

NRL GRM performance and total debt Direct
We are mostly -- the current refinery is mostly a diesel refinery. And diesel refinery diesel margin was very, very high. Actually, at times, it went to as high as $24, you may have seen in the third quarter. So therefore, our almost 65% to 70% product is diesel.

Clarifies the reason for NRL's high GRM in Q3 FY26, attributing it to strong diesel margins and high diesel product yield.

Asked by Bineet Banka

Clarification on production guidance and contractual costs Direct
This month, we have already drilled the equivalent number of drilling that we had done last year. And this is just 62. We are going to drill another 12 to 15 wells. So, this is the additional cost which is coming on the way because these are all monthly payments. So, this will accrue. That is how the higher contract cost is concerned.

Reiterates the rationale for increased contractual costs, linking them to the accelerated drilling program and the non-linear complexity of deeper wells.

Asked by Nitin Tiwari

Seismic costs and dry well write-offs Direct
The seismic cost number towards seismic data acquisition is about INR580 crores that I'm given to understand, and 9 months is INR1,151 crores.

Provides specific figures for seismic data acquisition costs for Q3 and 9M FY26, clarifying a component of the increased contractual expenses.

Asked by Vikas Jain

Northeast gas pipeline connectivity and Duliajan hub integration with IGGL Direct
The Duliajan feeder line is just waiting to be approved by the government once the authorization is communicated to IGGL... It will take about 18 months because it does not entail any major river crossing. So that would actually give us an opportunity of evacuating 3.5 million standard cubic meters of gas per day.

Outlines the status and timeline for critical gas pipeline infrastructure, particularly the Duliajan feeder line's role in evacuating gas to the IGGL network.

Asked by Moksh Ranka

3 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

For the first 9 months of FY26, Oil India reported a consolidated revenue of INR27,036.78 crores, with an EBITDA of INR9,298.62 crores and a PAT of INR5,126.21 crores. Standalone operating revenue for Q3 FY26 was INR4,916 crores, contributing to a 9-month standalone revenue of INR15,385 crores. The standalone PAT for Q3 FY26 stood at INR808.31 crores, with an EPS of INR16.39 per share for the 9-month period. The EBITDA margin for Q3 FY26 was 33.96%, a slight decrease from 34.82% in Q2 FY26.

Upstream Production and Realization Trends

Combined oil and gas production for Q3 FY26 was 1.659 MMTOE, reaching 4.991 MMTOE for the 9-month period. Crude oil production in Q3 FY26 was 0.858 MMT, showing a 1.18% increase QoQ, with daily production hitting a decade-high of 9,861 metric tons. Natural gas production for the quarter was 0.801 bcm, remaining stable QoQ. The average crude oil price realization for Q3 FY26 was $62.84 per barrel, a significant decline from $73.8 per barrel in Q3 FY25, contributing to a 17.16% decline in 9-month average realization to $65.73 per barrel.

Numaligarh Refinery Limited (NRL) Performance and Expansion

NRL reported an operating revenue of INR6,526 crores for Q3 FY26, with 9-month operating income at INR19,249 crores, up 5.67% YoY. The refinery achieved 100.31% capacity utilization and an 86.8% distillate yield in Q3 FY26. Gross refinery margin (excluding excise duty) was strong at $16.27 per barrel, a 54% increase QoQ, primarily driven by high diesel margins. NRL's EBITDA for Q3 FY26 was INR1,302 crores, more than double the INR637 crores in Q3 FY25, and PAT rose to INR867 crores from INR385 crores in Q3 FY25.

Exploration and Development Strategy

Oil India is pursuing an aggressive exploration and development strategy, having drilled 62 wells by Q3 FY26 and targeting 75+ wells for FY26, the highest in its history. The company aims for 100 wells in FY27. Efforts include deeper drilling (5,500+ meters), enhanced rig deployment, and extensive seismic data acquisition in new acreages like Andaman Nicobar and Kerala-Konkan. The Rajasthan field has seen production increase to 1,000 barrels per day. Contractual costs have risen due to these intensified activities.

Pipeline Infrastructure and Gas Monetization

Significant progress has been made on pipeline projects. The Numaligarh-Siliguri product pipeline expansion has achieved mechanical completion. The Duliajan-Numaligarh pipeline expansion, increasing capacity from 1 MMTPA to 2.5 MMTPA, is mechanically complete and expected to be commissioned by April 2026. The Paradip-Numaligarh crude oil pipeline, with 90% physical progress, is anticipated to be ready for commissioning by Q1 FY27. Gas monetization efforts include laying additional infield lines, converting crude lines to gas lines, and utilizing gas storage, with the Duliajan feeder line for IGGL awaiting government approval.

Capital Expenditure and Debt Profile

Oil India's standalone capex for FY26 is projected to exceed INR8,800 crores, revised upwards to INR9,200 crores plus for future years, driven by increased exploration and production activities. NRL's total project capex, including refinery and petchem, is estimated at INR45,000 crores, with an FY26 outgo of INR8,000 crores. The polypropylene unit alone accounts for INR7,200 crores. Consolidated net debt stands at INR34,000 crores, comprising INR16,000 crores at NRL and INR16,000 crores at Oil India standalone, with the latter primarily for overseas assets. The company declared an interim dividend of INR7 per share for Q3 FY26, bringing the total FY26 dividend to INR10.5 per share.

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