Oil India profit rises YoY as sequential operating margin drops 11.90 points
Revenue growth outpaced costs year on year, but the quarter-on-quarter reset saw expenses rise as revenue fell, pushing net profit down 37.40%.
Filed 12 Nov 2026, 15:51 IST · after market close · Oil India Ltd (OIL)
Key takeaways
- Consolidated net profit rose 53.36% year on year as revenue grew 37.42%, but fell 37.40% sequentially.
- Operating margin expanded 6.99 percentage points year on year but contracted 11.90 percentage points quarter on quarter as expenses rose 12.72% while revenue fell 7.75%.
- Other income contributed 16.77% of pre-tax profit, while the tax rate rose 6.86 percentage points year on year to limit profit conversion.
Price around the results
Year-on-year growth masks a sharp sequential reset
Oil India's consolidated revenue rose 37.42% year on year to Rs 11,534.87 cr, while expenses grew 24.19%, allowing operating profit to increase 72.39%. Sequentially, revenue fell 7.75% and expenses rose 12.72%, cutting operating profit 31.45% and net profit 37.40%. The result was filed after market close, so there has been no immediate market reaction.
Costs drove the 11.90-point margin contraction
Operating margin improved 6.99 percentage points year on year because revenue growth outpaced expense growth. Quarter on quarter, the direction reversed: expenses grew while revenue declined, reducing margin by 11.90 percentage points. Interest expense also rose 16.17% sequentially, while other income accounted for 16.77% of pre-tax profit, making reported profit partly dependent on non-operating income.
Margin remains well above the reported energy-peer median
Oil India's 34.43% operating margin was 18.86 percentage points above the 15.57% median for the 25 energy companies that had reported the same quarter. The trend has been uneven rather than uniformly weakening: margin rose from 27.44% in Q2FY26 to 30.13% in Q3FY26, 35.30% in Q4FY26 and 46.33% in Q1FY27 before falling to 34.43% this quarter. The year-on-year tax rate increase of 6.86 percentage points also reduced the benefit of operating profit growth.
Past results have more often been followed by declines
The stock has fallen after six of its last eight results, compared with two increases, and its median absolute move has been 2.06%. That history gives the recent reaction pattern a downward bias, although this quarter's filing came after market close and no fresh move is available yet.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹11,535 cr | ₹12,503 cr | -7.75% | +37.42% |
| Other income | ₹576 cr | ₹530 cr | +8.73% | -20.11% |
| Expenses | ₹7,564 cr | ₹6,711 cr | +12.72% | +24.19% |
| Operating profit | ₹3,971 cr | ₹5,793 cr | -31.45% | +72.39% |
| Operating margin (%) | 34.43% | 46.33% | — | — |
| Interest | ₹351 cr | ₹302 cr | +16.17% | +14.99% |
| Depreciation | ₹762 cr | ₹698 cr | +9.12% | +13.48% |
| Profit before tax | ₹3,434 cr | ₹5,322 cr | -35.48% | +67.70% |
| Tax | ₹913 cr | ₹1,295 cr | -29.51% | +126.06% |
| Net profit | ₹2,521 cr | ₹4,027 cr | -37.40% | +53.36% |
| EPS (₹) | ₹14.19 | ₹22.32 | -36.42% | +61.62% |
Operating margin of 34.43% compares with a Energy sector median of 15.57% across 25 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 34.43% after the 11.90-percentage-point sequential decline.
- Whether interest expense moderates from Rs 350.99 cr after rising 16.17% quarter on quarter.
- Whether other income remains near its 16.77% share of pre-tax profit.