This article first appeared on GuruFocus .
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Combined Oil and Gas Production:1.652 million metric tons of oil equivalent for Q2 FY26; 3.332 MMTO for the half year.
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Crude Oil Production:0.848 million metric tons for the quarter, a decrease of 0.6% quarter-over-quarter and 2.58% year-over-year.
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Natural Gas Production:0.84804 BCPM for the quarter, a decrease of 2.8% quarter-over-quarter and an increase of 0.6% year-over-year.
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Average Crude Oil Price Realization:$68.19 per barrel for Q2; $67.22 per barrel for the half year, a decrease of 18.11% year-over-year.
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Standalone Revenue:5,456 crore for Q2 FY26, a 9% increase quarter-over-quarter; 10,469 crore for the half year.
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EBITDA Margin:34% for Q2, down from 47% in the previous quarter.
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Profit After Tax (PAT):1,144 crore for Q2 FY26, reflecting a 28.8% growth quarter-over-quarter; 1,857 crore for the half year.
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Earnings Per Share (EPS):Approximately 6.2 per share, reflecting a 28% growth quarter-over-quarter.
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NRL Subsidiary Revenue:6,442 crore for the quarter, up 2.5% quarter-over-quarter and 24% year-over-year.
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NRL Gross Refinery Margin:$10.56 per barrel for Q2 FY26, up 110% from the previous quarter.
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NRL EBITDA:989 crore for the quarter; 1,774 crore for the half year.
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Consolidated Turnover:9,175 crore for Q2 FY26.
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Dividend Declared:3.50 per share for the quarter.
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Release Date: November 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Oil India Ltd ( BOM:533106 ) achieved 100% of its drilling targets for Q2 FY26, with 18 new wells drilled, marking a 28% increase year-over-year.
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The company successfully commissioned the mechanical completion of a new pipeline on October 12, 2025, enhancing its midstream capabilities.
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Oil India Ltd's subsidiary, NRL, achieved a capacity utilization of over 100% with a distillate yield of 86% for Q2 FY26.
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The company reported a 28.8% growth in profit after tax (PAT) on a quarter-to-quarter basis for Q2 FY26.
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Oil India Ltd declared a dividend of ?3.50 per share, reflecting its commitment to returning value to shareholders.
Negative Points
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Oil India Ltd experienced a decrease in crude oil price realization by 18.11% year-over-year, impacting revenue significantly.
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The company's EBITDA margin decreased to 34% from 47% in the previous quarter due to reduced revenue and write-offs.
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There was a temporary production slowdown in the northeast region, affecting oil and gas production volumes.
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Higher other expenses were reported due to write-offs related to blocks in Bangladesh and Gabon, amounting to around INR 700 crore.
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Employee expenses increased due to a government-mandated gratuity liability adjustment, impacting financial performance.
Q & A Highlights
Q: Can you explain the higher other expenses this quarter, which are significantly above the usual levels? A: The increase in other expenses is primarily due to provisions for two blocks, one in Bangladesh and another in Gabon, totaling around INR 700 crore. Additionally, a well drilled in the Andaman basin also contributed to the expenses with a provision of INR 723 crore. These are the main reasons for the higher expenses this quarter. - Abhijit Majumder, CFO
Q: What is the status of the DNP capacity augmentation, and when do you expect it to be fully operational? A: The mechanical completion of the DNP pipeline is done, and we are now in the process of obtaining necessary approvals. We expect to be fully operational by April 2026. - Trailukya Borgohain, Executive Director - Operations
Q: Could you provide an update on the Andaman exploration and the write-offs associated with it? A: The Andaman exploration has shown the occurrence of hydrocarbons, and we are currently drilling the third well. We plan to conduct supplementary 3D seismic surveys to better understand the subsurface. The write-offs are an accounting treatment and do not necessarily reflect the potential of the discovery. - Saloma Yomdo, Executive Director - Exploration and Development
Q: What are the updated production targets for FY26 and FY27, considering the recent disruptions? A: For FY26, we aim for 3.776 million metric tons of oil, though disruptions may affect this. For FY27, the target is 3.798 million metric tons. Gas production targets are 3.6 BCM for FY26 and 3.8 BCM for FY27. - Abhijit Majumder, CFO
Q: Is there any planned shutdown for NRL in the coming months, and when do you expect the expanded capacity to start operations? A: There is no planned shutdown for NRL in the near term. We expect the first crude intake for the expanded capacity in December, with significant ramp-up expected by Q2 of the next fiscal year. - Unidentified Company Representative
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
