Oil Country Tubular Q2 Loss at Rs 12.39 Crore

Oil Country Tubular posted a net loss of Rs 12.39 crore for the quarter ended September 30, 2026, on revenue of Rs 25.17 crore.

Reader Takeaway: Net losses are narrowing, while asset revaluation and revised depreciation schedules aim to boost future bottom-line visibility.

What just happened

Oil Country Tubular reported a net loss of Rs 12.39 crore for the second quarter of the current fiscal year. This reflects a narrowing of losses compared to the Rs 15.11 crore loss reported in the June quarter and the Rs 21.57 crore loss in the same period last year. Revenue from operations for the quarter stood at Rs 25.17 crore.

Why this matters

The board has approved a significant revaluation of the company's land, buildings, and machinery, raising their carrying value from Rs 208.78 crore to Rs 228.62 crore. While this adjustment does not impact the current quarter's financials, the company has reassessed the useful life of its assets—setting building utility at 8 years and machinery at 6 years. This change in accounting estimates is expected to lower depreciation expenses starting from the December 2026 quarter, potentially aiding the path to profitability.

Corporate Actions

The company successfully completed the conversion of Optionally Convertible Preference Shares (OCPS) into 41,95,000 equity shares at a premium of Rs 55 per share. Additionally, a one-time power cost reversal of Rs 74.35 lakh was recorded following a tariff revision by TSERC regulations.

Risks to watch

Despite technical adjustments to depreciation, the company remains in a loss-making position on a standalone basis. Investors should prioritize monitoring the firm’s core operational efficiency and the timing of a sustainable turnaround beyond these accounting shifts.

What to track next

Shareholders should observe the impact of reduced depreciation on upcoming quarterly earnings and monitor how the expanded equity base influences future earnings per share calculations.