Oil India's Q2 earnings hit by lower oil prices, production dip

Oil India Limited announced its Q2 FY26 financial results, with standalone revenue of INR5,456 crores, a 9% increase quarter-on-quarter. Consolidated PAT, however, decreased to INR1,640 crores. The company experienced an 18.11% decrease in crude oil price realization to $68.19 per barrel, down from $79.33 in the prior quarter, significantly impacting revenue. Natural gas prices remained steady at $6.78 per MMBTU. Despite challenges, the board declared an interim dividend of INR3.50 per share.

The combined oil and gas production for Q2 FY26 was 1.652 million metric tons of oil equivalent, with crude oil production at 0.848 million metric tons, a 0.6% quarter-on-quarter decrease. Natural gas production stood at 0.804 bem, a 2.8% quarterly decrease, attributed to temporary external factors in the Northeast region. The company successfully drilled 18 new wells in Q2 FY26, achieving 100% of its target.

In operational developments, the Numaligarh Siliguri pipeline was mechanically completed on October 12, 2025, with full commissioning expected by April 2026. Numaligarh Refinery Limited (NRL), a material subsidiary, saw revenue rise to INR6,442 crores, with a gross refinery margin of $10.56 per barrel for Q2 FY26. NRL's expansion is progressing, aiming for primary unit commissioning by December 2025, with a gradual ramp-up into Q2 FY27.