Oil India Ltd
Oil India Ltd is engaged in exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG. It also provides various E&P related services for oil blocks.
Key Business segments
Oil India Limited’s core business is crude oil and natural gas production, with FY 2023–24 outputs of 3.2 MMT and 3.5 BCM respectively. It also operates pipelines, produces LPG, invests in renewables, and owns a stake in Numaligarh Refinery, which is expanding. The company has overseas assets in Russia, Mozambique, and the U.S., supporting global diversification.
Revenue Breakup
- Refinery – 50% in 9M FY24 vs 62% in FY22
- Crude Oil – 37% in 9M FY24 vs 32% in FY22
- Natural Gas – 12% in 9M FY24 vs 4% in FY22
- Pipeline Transportation – 1%
Shareholding Pattern
Financial Summary
| Particulars | Dec-23 | Mar-24 | Mar-25 |
| Sales | 36,084 | 31,749 | 32,512 |
| Sales Growth % | 39.29% | -12.01% | 2.40% |
| Expenses | 20,829 | 19,245 | 21,355 |
| Operating Profit | 15,255 | 12,504 | 11,158 |
| OPM % | 42% | 39% | 34% |
| Net Profit | 9,854 | 6,980 | 7,040 |
| EPS in Rs | 53.66 | 38.95 | 40.27 |
Synopsis of Financials
- Q3FY25 EBITDA/PAT improved by 17%/12% QoQ and flattish/-8% YoY for our coverage universe (ex-GOLI). The sequential rise in EBITDA was driven by strong earnings from OMCs, Reliance and ONGC.
- YoY operational earnings were flattish driven by strong earnings from Reliance, BPCL, HPCL and ONGC, set off by weaker earnings from IOCL, CGDs and utility companies. Singapore (SG) GRM improved by USD 1.2/bbl QoQ; blended retail fuel margin improved by INR 2.6/ltr.
Final Outlook
Q3FY25 EBITDA/PAT improved by 17%/12% QoQ and flattish/-8% YoY for our coverage universe (ex-GOLI). The sequential rise in EBITDA was driven by strong earnings from OMCs, Reliance and ONGC. YoY operational earnings were flattish driven by strong earnings from Reliance, BPCL, HPCL and ONGC, set off by weaker earnings from IOCL, CGDs and utility companies. Singapore (SG) GRM improved by USD 1.2/bbl QoQ; blended retail fuel margin improved by INR 2.6/ltr. Cut in APM allocation drove the YoY decline in reported earnings for CGDs. Upstream broadly delivered in-line volume growth, with improvement in realisation in store for both crude and gas. We remain positive structurally but note that near-term headwinds on pricing, regulations and margins may keep stocks rangebound in near term.
In Q3FY25, India’s oil and gas sector showed muted year-on-year growth but strong sequential recovery, with total EBITDA rising 17% QoQ and PAT up 12%. OMCs like IOCL, BPCL, and HPCL benefited from better refining and marketing margins despite LPG losses. Reliance posted 8% YoY EBITDA growth, though future momentum may slow. Upstream firms ONGC and Oil India had steady volumes but weaker profits due to lower income and higher costs. CGDs saw strong volume but sharp margin pressure, while gas utilities like GAIL and GSPL reported weak results amid tariff cuts. Gulf Oil stood out with double-digit growth and margin gains. While near-term headwinds persist, FY26 outlook remains constructive.
