Oil India Rockets: Net Profit Soars 28% in Q2, Investor Alert Issued on Dividend & Major Project Wins!

Author

Simar Singh | Whalesbook News Team

Detailed Coverage:

Oil India Limited announced robust financial results for the September quarter (Q2 FY26), with net profit surging 28% quarter-on-quarter to ₹1,044 crore, up from ₹813.5 crore in the preceding quarter. Revenue also saw a healthy increase of 8.9% QoQ, reaching ₹5,456 crore. However, EBITDA declined by 17.5% QoQ to ₹1,324.7 crore, with EBITDA margins narrowing to 24.3% from 32%.

The company's board declared an interim dividend of ₹3.50 per share for the financial year 2025–26, with the payment expected on or before December 14, 2025, and a record date set for November 21, 2025.

Operational performance remained stable, with Oil and oil-equivalent gas production at 1.652 MMTOE in Q2 FY26. Its subsidiary, Numaligarh Refinery Ltd (NRL), achieved a crude throughput of 753 TMT, operating at 100.38% capacity utilisation. A significant development was the commissioning of India's first 2G bioethanol plant using bamboo feedstock at NRL, inaugurated by the Prime Minister.

Further progress was noted with the mechanical completion of the Numaligarh–Siliguri Product Pipeline (NSPL) upgrade. Importantly, force majeure was lifted in November 2025 for the Area-1 Offshore LNG Block in Mozambique, where Oil India has a 4% interest, paving the way for operational resumption after a suspension since May 2021.

Impact This news is significantly positive for Oil India Ltd. The strong profit growth and dividend declaration are likely to boost investor confidence and potentially drive the stock price higher. The successful commissioning of the bioethanol plant and the lifting of force majeure in Mozambique represent key strategic advancements that could contribute to future revenue streams and operational stability. The stable production figures and high capacity utilisation at NRL demonstrate operational efficiency. Overall impact on the company and investor sentiment: 8/10.

Difficult Terms: Quarter-on-Quarter (QoQ): A comparison of financial results from one quarter to the next, indicating sequential growth or decline. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance, excluding financing and accounting decisions. MMTOE (Million Metric Tonnes of Oil Equivalent): A standard unit used to measure the total volume of oil and gas production. TMT (Thousand Metric Tonnes): A unit used to measure the volume of crude oil processed or refined. Capacity Utilisation: The extent to which a company's production facilities are operating at their maximum potential output. Force Majeure: A contractual clause that excuses a party from fulfilling its obligations due to unforeseen events beyond its control, such as natural disasters or political instability. Feedstock: The raw material supplied to an industrial processing plant.