Oil Country Tubular Q2 Results: Loss Narrows, Assets Revalued

Revenue for the September 2026 quarter reached Rs 25.17 crore, up from Rs 10.05 crore in the same period last year. Net loss narrowed significantly to Rs 12.39 crore, compared to a loss of Rs 21.57 crore in the corresponding period of 2025.

Reader Takeaway: Revenue growth and reduced losses show operational progress, while asset revaluation aims to lower future depreciation burdens.

What just happened

Oil Country Tubular released its financial results for the quarter ended September 30, 2026. Alongside improved top-line numbers, the board approved an asset revaluation exercise for land, buildings, and machinery, resulting in an aggregate increase of Rs 19.84 crore in carrying value. Additionally, the company allotted 41,95,000 equity shares following the conversion of preference shares in June 2026.

Why this matters

The reduction in net losses indicates improving operational efficiency. The asset revaluation, while not reflected in the current quarter's financials, is a strategic move to adjust the company's balance sheet. By reassessing the remaining useful life of buildings to 8 years and plant machinery to 6 years, management expects a downward adjustment in depreciation expenses starting from the December 2026 quarter, which may improve future bottom-line visibility.

Key Operational Highlights

• Power charges were reduced by Rs 0.74 crore following a billing revision.
• Finance costs for the quarter include Rs 0.15 crore of notional interest on convertible preference shares.
• EBITDA for the period stood at Rs 5.65 crore.

Risks to watch

Investors should monitor whether the current revenue growth momentum is sustainable. While the revaluation and useful life adjustments provide a technical boost to future net profit potential by lowering depreciation, the company remains in a loss-making position. Further, the reliance on operational cost reversals, such as the electricity bill adjustments, requires consistent revenue growth to achieve long-term profitability.

What to track next

Watch for the upcoming Q3 financial results to see the impact of the reduced depreciation charges and whether the revenue growth trend observed in the first half of the year continues.