State-owned upstream major Oil India Limited reported a sharp 34% year-on-year decline in standalone net profit to ₹808 crore for the December quarter, weighed down by a steep fall in crude oil realisations amid a softer global price environment.
Crude price realisation — the key profitability driver for exploration and production companies — dropped around 15% on-year to $62.84 per barrel during the quarter, reflecting the broader downturn in global oil markets. The weaker pricing translated into slower topline growth, with revenue from operations slipping 6.2% to ₹4,916.10 crore compared with the year-ago period.
Oil India output slips from ageing fields
Production also edged lower, highlighting the pressure on legacy assets. Oil India produced 1.659 million metric tonnes of oil equivalent (MMTOE) during the quarter from its mature and ageing fields, marginally below 1.697 MMTOE recorded in the same period last year.
In contrast to the upstream slowdown, the company’s refining arm Numaligarh Refinery Limited delivered a strong earnings rebound.
Strong refining margins drive profit surge
The subsidiary more than doubled its net profit to ₹867 crore in the December quarter from ₹385 crore a year earlier, buoyed by robust refining margins. Its gross refining margin stood at $16.27 per barrel, benefiting from favourable product spreads.
Alongside the earnings announcement, Oil India declared an interim dividend of ₹7 per fully paid equity share, providing a payout to shareholders despite the profit contraction at the standalone level.