By NSB.News
New Delhi: Oil India Limited (OIL) reported a sharp 34 percent year-on-year decline in standalone profit for the December quarter of FY26, as lower crude oil realisations impacted earnings. Despite the drop in profitability, the company announced a second interim dividend, reflecting confidence in its financial position.
The company posted a standalone profit after tax (PAT) of Rs 808 crore in Q3 FY26, compared with Rs 1,222 crore in the same quarter last year. On a sequential basis, PAT also fell from Rs 1,044 crore reported in Q2 FY26.
Oil India attributed the decline primarily to lower crude price realisation, which dropped to USD 62.84 per barrel in Q3 FY26 from USD 73.82 per barrel in Q3 FY25 — a fall of around 15 percent.
Standalone revenue from operations stood at Rs 4,916 crore during the quarter, down 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 declined to Rs 15,385 crore from Rs 16,598 crore in the corresponding period last year.
Segment Performance Under Pressure
The impact of softer crude prices was most evident in the company’s core upstream segments. Revenue from the crude oil segment 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 more than halved to Rs 751 crore from Rs 1,564 crore.
The natural gas segment also reported lower profitability, with profit before tax and interest declining to Rs 381 crore from Rs 673 crore in Q3 FY25, although segment revenue saw a marginal year-on-year increase.
Pipeline transportation revenues improved sequentially, aided by recognition of arrears linked to revised crude oil forward pumping rates. The renewable energy segment remained small and continued to report losses at the standalone level.
Overall, Oil India’s standalone operating margin compressed sharply to 13.6 percent in Q3 FY26, compared with over 30 percent in the year-ago quarter, reflecting the combined impact of lower realisations and higher costs.
Consolidated Performance Supported by NRL
On a consolidated basis, however, performance remained relatively stable, supported by strong earnings from subsidiaries, particularly Numaligarh Refinery Limited (NRL). Oil India reported a consolidated PAT of Rs 1,436 crore in Q3 FY26, largely unchanged from Rs 1,457 crore in Q3 FY25.
For the nine months ended December 2025, consolidated PAT stood at Rs 5,126 crore, compared with Rs 5,543 crore in the same period last year.
NRL emerged as a key earnings driver, posting a PAT of Rs 867 crore in Q3 FY26, a 125 percent jump from Rs 385 crore in Q3 FY25. The refinery reported a gross refining margin of USD 16.27 per barrel during the quarter. NRL was also granted Navratna status, underscoring its strong financial performance and strategic significance.