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    Oil India

    OIL
    Oil, Gas & Consumable Fuels·29 May 2026
    Management Summary

    Oil India reported a strong Q4 FY26, with consolidated income growing 3% to ₹38,981 crores and PAT up 7% to ₹7,551 crores, despite lower crude oil prices. The company achieved record drilling and workover operations, and its subsidiary NRL delivered superlative performance. Strategic initiatives in exploration, midstream infrastructure, and new energy are progressing, with significant capex plans and a consistent dividend payout.

    Highlights

    10

    • Consolidated income of ₹38,981 crores, demonstrating 3% year-on-year growth.

    • EBITDA grew 5% and PAT grew 7% to ₹13,498 crores and ₹7,551 crores respectively.

    • Highest ever drilling (74 wells) and workover operations (307) in FY26.

    • Numaligarh Refinery (NRL) achieved 103% crude oil throughput and 87.25% yield, its highest ever performance.

    • Dividend of 115% declared for FY26, consistent with the previous year, despite a decline in crude oil price realization.

    • Market capitalization grew about 32% since April 2025, reaching ₹82,000 crores as of May 20th.

    • Force majeure in Mozambique project withdrawn in November 2025, with LNG trains expected by end 2028/early 2029.

    • Duliajan Feeder Line authorization obtained, enabling evacuation of 3.5 MMSCMD natural gas.

    • New well gas allocated to NRL receives a 20% premium over APM gas price.

    • TotalEnergies partnership for offshore exploration to leverage world-class technical capabilities.

    Concerns

    3

    • Economic blockade in operating areas led to a loss of 0.1 million metric ton of crude oil and 0.3 million BCM of natural gas.

    • Crude oil price realization declined from $78 to $69 per barrel in FY26, the lowest in the last 5 years.

    • Delay in accrual of New Well Gas benefits due to pending pipeline commissioning and allocation to mainland India.

    Key financials

    Single quarter

    08 metrics
    1. 01Consolidated Income₹38,981 Cr+3%YoY
    2. 02Consolidated EBITDA₹13,498 Cr+5%YoY
    3. 03Consolidated PAT₹7,551 Cr+7.0%YoY
    4. 04Standalone PAT₹4,455 Cr
    5. 05EPS₹27.39

    Segment breakdown

    Numaligarh Refinery Limited (NRL)
    103% Crude Oil Throughput99.1% Operational Availability87.3% Yield727 TMT Motor Spirit Production1.6x GRM
    List

    Capital allocation

    6
    high confidence
    CategoryHeadline
    Capex

    ₹13,025 crores

    Debt

    0.3x EBITDA

    Dividend

    ₹11.5/share (interim)

    M&A

    Mozambique LNG Project

    joint venture · integrated

    M&A

    Libya Asset 95/96

    Other · Other

    Guidance & targets

    18
    CategoryTargetPriority
    Production
    Oil equivalent production
    10 to 12 million metric ton
    		High
    Drilling
    Wells drilled
    around 100 wells
    		High
    Midstream Capacity
    Crude pipeline capacity
    18 MMTPA
    		High
    Midstream Capacity
    Gas pipeline capacity
    4X increase
    		High
    Midstream Capacity
    Product pipeline capacity
    2X increase
    		High
    Downstream Capacity
    NRL refinery capacity
    9 MMTPA
    		High
    Downstream Capacity
    NRL refinery full commissioning
    March 2027
    		High
    Renewable Energy
    RE capacity
    5 plus gigawatt
    		High
    Renewable Energy
    CBG plants
    25
    		High
    Sustainability
    Net zero target
    2040
    		High
    Sustainability
    Routine gas flaring
    net zero
    		High
    Gas Production
    Natural gas production
    3.35 BCM
    		High
    Gas Production
    Natural gas production
    5 BCM
    		High
    Retail Network
    CNG stations
    500
    		High
    Retail Network
    PNG stations
    1.4 million
    		High
    Oil Production
    Oil production
    4 million metric ton
    		High
    Exploration
    Deep water well drilling
    spot a deep water well
    		High
    Green Hydrogen
    NRL Green Hydrogen Plant commissioning
    2.4 KTPA
    		High

    NRL refinery commissioning progress

    next quarter / by March 2027
    CurrentCDU/VDU commissioning underway, DHDT a month later, PFCC/RPTU by Dec/Jan
    TargetFull 9 MMTPA commissioning by March 2027

    Why it matters

    Crucial for realizing full benefits of NRL expansion and associated gas allocation.

    The Numaligarh Refinery expansion from 3 million ton to 9 million ton is on track. On 31st December 2025, we undertook crude in for the CDU, and as we speak, the commissioning process is underway. By mid-June 30th or July, we will have the mother units . That's means 6 MMTPA of CDU and VDU will be commissioned. A month later we will have DHDT commissioned. And by December or early January we will kick start commissioning of the PFCC and the RPTU unit which will actually give us a leverage. By March 2027, the entire refinery 9 million ton will be commissioned, and the polypropylene unit work is anyway underway.

    How to verify

    guidance_and_targets[metric='NRL refinery full commissioning']

    Risks & concerns

    5
    RiskSeverity

    Economic blockade impacting production

    An economic blockade in operating areas led to a loss of 0.1 million metric ton of crude oil and 0.3 million BCM of natural gas. — Management acknowledged

    medium

    Crude oil price volatility

    Crude oil price realization declined from $78 to $69 per barrel in FY26, the lowest in the last 5 years. — Management acknowledged

    medium

    Geopolitical developments and energy transition

    Global energy landscape shaped by geopolitical developments, supply realignments, and energy transition. — Management acknowledged

    medium

    Capability gap for offshore exploration

    Addressed through TotalEnergies partnership, training, and Samudra Manthan mission support. — Analyst acknowledged

    low

    Delay in New Well Gas benefit accrual

    Benefits from New Well Gas allocation to NRL are delayed until pipeline commissioning and allocation to mainland India. — Analyst acknowledged

    medium

    Q&A highlights

    8

    “As far as our offshore exploration is concerned, we have about 50% of our acreage is currently offshore, exploration acreage. Just to give you a perspective, we have about 10,000 square kilometer shallow water in Andaman Nicobar on either side of Andaman Nicobar Island, we have about 3,000 square kilometer in Kerala-Konkan West Coast and we have got a small DSF block, Discovered Small Field block, in the shallow waters of KG basin.”

    Analyst sought details on the company's offshore exploration strategy, capital expenditure, and how it plans to address the capability gap for deep water exploration, given its onshore legacy. Management provided detailed acreage, ongoing drilling activities, and the TotalEnergies partnership.

    asked by Mr. Nitin - PhillipCapital

    2 min read6 chapters

    Detailed Narrative

    01

    Financial Performance and Market Position

    Oil India reported a consolidated income of ₹38,981 crores for FY26, representing a 3% year-on-year growth. Consolidated EBITDA increased by 5% to ₹13,498 crores, and PAT grew by 7% to ₹7,551 crores. Despite a decline in crude oil price realization from $78 to $69 per barrel, the company maintained a resilient performance. The market capitalization saw a significant growth of about 32% since April 2025, reaching ₹82,000 crores as of May 20th, reflecting strong investor confidence.

    02

    Upstream Exploration and Production Highlights

    In FY26, Oil India achieved its highest ever drilling performance with 74 wells, including 22 exploratory and 52 development wells, and completed 307 workover operations. The company's production stood at 6.64 million tons of oil equivalent, comprising 3.45 million metric tons of oil and 3.15 BCM of natural gas. The reserve replacement ratio improved to 1.20 in the current financial year, up from 0.94 in the previous year, with a 2P reserve base of 231 million metric tons of oil equivalent and a reserve span life of 31 years.

    03

    Numaligarh Refinery (NRL) Expansion and Performance

    Numaligarh Refinery Limited (NRL), a material subsidiary, delivered a superlative performance with 103% crude oil throughput, 99.1% operational availability, and an 87.25% yield, all being highest ever. The refinery's GRM was 1.6 times higher than the previous year. The expansion from 3 MMTPA to 9 MMTPA is on track, with CDU commissioning underway and full commissioning expected by March 2027. The dedicated Duliajan-Numaligarh pipeline, expanded from 1.2 to 2.5 MMSCMD, is mechanically complete and will be commissioned soon, enabling incremental gas flow with a 20% premium.

    04

    Midstream Infrastructure Development

    Oil India is significantly expanding its midstream infrastructure. The Numaligarh-Siliguri product pipeline capacity has been expanded from 1.72 to 5.5 MMTPA, completed in October 2025, to support NRL's enhanced capacity. The Duliajan Feeder Line authorization will enable evacuation of 3.5 MMSCMD of natural gas. The DNPL gas pipeline expansion from 1.2 to 2.5 MMSCMD was completed in November 2025, and its operationalization is pending a brief shutdown.

    05

    New Energy and Sustainability Initiatives

    The company is actively pursuing new energy initiatives through Oil India Green Energy Limited. It aims for 5+ gigawatts of renewable energy capacity by 2040 and 25 Compressed Biogas (CBG) plants by 2030, with two CBG projects already under construction. NRL is commissioning a 2.4 KTPA green hydrogen plant by year-end with a capex of ₹138 crores, aiming to displace grey hydrogen. Oil India is also on track to achieve net-zero emissions by 2040 and reduce routine gas flaring to net zero by 2027.

    06

    Strategic Partnerships and Government Support

    Oil India has partnered with TotalEnergies in November 2025 to enhance offshore exploration capabilities, leveraging world-class technical expertise. The company is also benefiting from the Government of India's Samudra Manthan Mission, which aims to sponsor deep water and ultra-deep water exploration wells. This initiative will support high-capex exploration efforts and potentially lead to significant discoveries, with the first deep water well targeted for mid-2027.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.