Oil India (OIL) Q1 25/26 earnings summary

Executive summary

• Board approved Q1 FY2026 results, highlighting steady transition to an integrated energy company, robust operational and financial performance, and consistent growth in oil and gas production.

• Outperformed benchmark indices over the last three years, with a 2.2x share price growth from FY19 to FY25 and maintained high market capitalization at INR 69K Cr as of August 2025.

• Standalone revenue for Q1 FY26 was INR 5,012.45 crore, down from INR 5,839.67 crore YoY; standalone net profit was INR 813.48 crore, down from INR 1,466.84 crore YoY.

• Consolidated revenue for Q1 FY26 was INR 8,749.94 crore, with consolidated PAT at INR 2,046.51 crore, supported by strong subsidiary and JV contributions.

• Dividend payout ratio remained strong at 31% for FY24 and FY25, with share buybacks and bonus shares contributing to shareholder returns.

Financial highlights

• Standalone EBITDA margin for Q1 FY26 was 21.44%, down from 34.42% YoY; standalone net profit margin at 16.23%, compared to 25.12% YoY.

• Consolidated operating margin for Q1 FY26 was 19.70%, down from 27.68% YoY; consolidated net profit margin at 23.39%, up from 21.56% YoY.

• EPS for the group rose marginally to INR 11.66 per share; standalone EPS for Q1 FY26 was INR 5.00, compared to INR 9.02 YoY.

• Russian JVs contributed INR 780 crores to group PAT.

• Dividend payout and strong balance sheet supported by robust cash flows.

Outlook and guidance

• Oil production targets: 3.70 MMT for FY2026 and 3.95 MMT for FY2027; gas targets: 3.65 MMT and 4.31 MMT, respectively.

• CapEx guidance: INR 6,995 crores (parent) and INR 9,100 crores (NRL) for FY2026; INR 7,585 crores (parent) and INR 7,300 crores (NRL) for FY2027.

• Renewable energy investments of INR 25,000 crores targeted for net zero by 2040, including 1.9 GW solar and 200 MW wind by March 2026.

• Gas realizations expected to improve due to NWG premium and removal of windfall tax in Dec'24.

• Continued focus on gas-focused developments, enhanced recovery, and expansion into green hydrogen.