New Delhi: Oil India Limited’s (OIL) standalone profit declined sharply in the December quarter of FY26 as lower crude oil realisations weighed on earnings, even as the company maintained stable production and announced a higher interim dividend. The company posted a standalone profit after tax (PAT) of Rs 808 crore in Q3 FY26, down from Rs 1,222 crore in the corresponding quarter of the previous year, a year-on-year decline of nearly 34 percent. On a quarter-on-quarter basis, standalone PAT fell from Rs 1,044 crore in Q2 FY26.
Oil India attributed the weaker standalone profitability primarily to lower crude price realisation, which declined to USD 62.84 per barrel in Q3 FY26 from USD 73.82 per barrel in Q3 FY25 — a drop of about 15 percent.
Standalone revenue from operations declined to Rs 4,916 crore in Q3 FY26 from Rs 5,240 crore a year ago and Rs 5,457 crore in the September quarter. For the nine months ended December 31, 2025, standalone revenue stood at Rs 15,385 crore, down from Rs 16,598 crore in the same period last year.
Segment results showed that the impact of lower prices was most visible in Oil India’s core upstream businesses. Crude oil segment revenue fell to Rs 3,266 crore in Q3 FY26 from Rs 3,658 crore a year earlier, while profit before tax and interest from the segment dropped sharply to Rs 751 crore from Rs 1,564 crore.
The natural gas segment also saw a decline in profitability, with profit before tax and interest falling to Rs 381 crore in Q3 FY26 from Rs 673 crore in Q3 FY25, even as segment revenue edged up marginally on a year-on-year basis.
Pipeline transportation revenues rose sequentially due to the recognition of arrears linked to revised crude oil forward pumping rates, while the renewable energy segment remained small and loss-making at the standalone level during the quarter.
Overall, Oil India’s standalone operating margin compressed to 13.6 percent in Q3 FY26, compared with over 30 percent in the year-ago quarter, reflecting the combined impact of lower price realisations and higher costs.
In contrast to the standalone performance, Oil India’s consolidated results remained relatively stable due to strong performance from subsidiaries, particularly Numaligarh Refinery Limited (NRL). On a consolidated basis, Oil India reported a PAT of Rs 1,436 crore in Q3 FY26, broadly flat compared with Rs 1,457 crore in Q3 FY25. For the nine months ended December 2025, consolidated PAT stood at Rs 5,126 crore, down from Rs 5,543 crore a year earlier.
NRL emerged as a key earnings driver during the quarter, posting a PAT of Rs 867 crore in Q3 FY26, up 125 percent from Rs 385 crore in Q3 FY25, supported by a gross refining margin of USD 16.27 per barrel. During the quarter, NRL was also granted Navratna status, recognising its financial performance and strategic importance.
The consolidated segment data showed refinery products contributing significantly to group profitability, offsetting weakness in upstream segments.
Oil India said it produced 1.659 million metric tonnes of oil equivalent (MMTOE) of oil and gas (including oil equivalent gas) in Q3 FY26 from its mature and ageing fields, marginally lower than 1.697 MMTOE produced in Q3 FY25.
The company, however, achieved its highest daily crude oil production in a decade, at 9,861 tonnes on December 31, 2025, underscoring operational stability despite natural field decline.
The board of directors declared a second interim dividend of Rs 7 per equity share for FY26, in addition to the first interim dividend of Rs 3.50 per share already paid earlier in the year. The second interim dividend will be paid on or before March 11, with February 18 set as the record date.
The higher dividend declaration comes even as standalone earnings remain under pressure, reflecting Oil India’s strong balance sheet and cash position.
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