Oil India Ltd has released its financial performance for the second quarter of FY26 on 14th November 2025, reflecting a mixed set of numbers across its business segments. While revenue showed steady growth, profitability softened compared with last year’s strong base.
Revenue Growth with Divergent Segment Trends
For the quarter ended 30 September 2025, Oil India recorded revenue from operations (excluding excise duty) of ₹5,456.64 crore, representing a 4.01% year-on-year increase.
Despite this overall growth, the company witnessed contrasting movements across its key business lines:
- Crude oil revenue declined 11.73% YoY to ₹3,512.25 crore.
- Natural gas revenue rose 6.88% YoY to ₹1,418.65 crore.
- Pipeline transportation income surged 226.77% YoY to ₹444.87 crore, marking a significant boost.
- LPG revenue grew 7.05% YoY to ₹46.33 crore.
- Renewable energy income increased 3.75% YoY to ₹34.62 crore.
These shifts highlight changing market conditions as well as the company’s expanding contribution from gas, transportation and renewable assets.
Profitability Impacted by Higher Costs
The company posted a standalone net profit of ₹1,044.02 crore, a 43.1% decline compared with ₹1,834.07 crore in Q2 FY25.
Profit before tax also moderated to ₹1,317.59 crore, down 42.85% from the previous year.
Margins were affected accordingly:
- Operating margin narrowed sharply to 13.69% from 30.43%.
- Net profit margin softened to 19.13%, compared with 33.23% a year earlier.
Stable Production and Strong Refinery Throughput
Oil and oil-equivalent gas production remained steady at 1.652 MMTOE, closely aligned with 1.674 MMTOE recorded in the same period last year.
Numaligarh Refinery Ltd (NRL) – an associate of Oil India – delivered a healthy operational performance:
- Crude throughput rose to 753 TMT, compared with 683 TMT last year.
- Capacity utilisation stood at an impressive 100.38%.
Operational Milestones and Strategic Progress
The quarter also marked noteworthy project achievements:
- NRL commissioned India’s first 2G bioethanol plant using bamboo as the primary feedstock, reinforcing the company’s commitment to cleaner energy solutions.
- Oil India achieved mechanical completion of the Numaligarh–Siliguri Product Pipeline, an important infrastructure development.
- Force majeure was lifted in November 2025 for the Area-1 Offshore LNG Block in Mozambique, where Oil India holds a 4% participating interest, paving the way for future progress.
Interim Dividend Declared
The board approved an interim dividend of ₹3.50 per share (35% of paid-up capital) for FY26. The dividend will be distributed on or before 14 December 2025, with 21 November 2025 set as the record date.
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About Oil India
Oil India is a leading enterprise engaged in the exploration, development, and production of crude oil and natural gas. Its activities also include transportation of crude oil, LPG production, and the provision of specialised E&P services.
Shares of Oil India closed 0.73% higher at ₹172.30 on the BSE following the announcement.
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