Oil India’s operating margin jumps 16.68 points as revenue outpaces costs
Sequentially, operating margin rose 11.03 percentage points, while other income still contributed 9.95% of pre-tax profit; results were filed after market close.
Filed 07 Aug 2026, 18:37 IST · after market close · Oil India Ltd (OIL)
Key takeaways
- Consolidated operating margin expanded 16.68 percentage points YoY to 46.33% as expenses grew +20.31% against revenue growth of +57.70%.
- Consolidated net profit rose +96.77% YoY to Rs 4,026.83 cr even as other income fell -45.98% and the tax rate rose 6.03 percentage points.
- Oil India’s 46.33% operating margin was 30.98 percentage points above the 15.35% median for 17 reported Energy peers.
Price around the results
Revenue growth widened Oil India’s operating spread
Consolidated revenue rose +57.70% YoY and +34.54% QoQ, while expenses increased at a slower +20.31% and +11.61%, respectively. This gap lifted operating profit growth to +146.40% YoY and +76.56% QoQ. The result was a 16.68-percentage-point YoY expansion in operating margin.
Operating margin reached 46.33% after three straight rises
Operating margin expanded 11.03 percentage points QoQ because revenue growth outpaced expense growth. It has risen from 27.44% in Q2FY26 to 30.13% in Q3FY26, 35.30% in Q4FY26 and 46.33% in Q1FY27. Oil India’s margin was 30.98 percentage points above the 15.35% median among 17 Energy peers that had reported.
Lower other income did not prevent profit growth
Other income fell -45.98% YoY and -42.36% QoQ, but still accounted for 9.95% of pre-tax profit, so earnings included a meaningful non-operating contribution. The higher 24.34% tax rate, up 6.03 percentage points YoY and 2.07 percentage points QoQ, did not flatter net profit. Interest expense rose +51.78% YoY but declined -20.77% QoQ.
The market reaction will follow an after-close filing
Oil India filed these consolidated results after market close, so there was no market reaction to report yet. Across eight recent result reactions, the stock rose twice and fell six times, with a median absolute move of 2.06%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹12,503 cr | ₹9,293 cr | +34.54% | +57.70% |
| Other income | ₹530 cr | ₹919 cr | -42.36% | -45.98% |
| Expenses | ₹6,711 cr | ₹6,012 cr | +11.61% | +20.31% |
| Operating profit | ₹5,793 cr | ₹3,281 cr | +76.56% | +146.40% |
| Operating margin (%) | 46.33% | 35.30% | — | — |
| Interest | ₹302 cr | ₹381 cr | -20.77% | +51.78% |
| Depreciation | ₹698 cr | ₹699 cr | -0.16% | +11.32% |
| Profit before tax | ₹5,322 cr | ₹3,119 cr | +70.63% | +112.46% |
| Tax | ₹1,295 cr | ₹695 cr | +86.47% | +182.47% |
| Net profit | ₹4,027 cr | ₹2,424 cr | +66.09% | +96.77% |
| EPS (₹) | ₹22.32 | ₹12.91 | +72.89% | +91.42% |
Operating margin of 46.33% compares with a Energy sector median of 15.35% across 17 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 46.33% after its 11.03-percentage-point QoQ rise.
- Whether expense growth remains below revenue growth after +20.31% versus +57.70% YoY.
- Other income’s share of pre-tax profit versus 9.95%, alongside the tax rate versus 24.34%.