Oil India profit jumps 61.96% as margin recovery accelerates
Revenue grew 5.51% year on year, while other income and a lower tax rate amplified the reported profit increase.
Filed 13 May 2026, 17:50 IST · after market close · Oil India Ltd (OIL)
Key takeaways
- Consolidated operating margin widened 2.83 percentage points year on year to 35.3% as revenue grew faster than expenses.
- Net profit rose 61.96% year on year, helped by other income equal to 29.45% of pre-tax profit and a 9.46-percentage-point fall in the tax rate.
- The initial 2.06% share-price gain was unusual in direction, as seven of the past eight result-day reactions were negative.
Price around the results
Margin recovery lifted Q4FY26 operating profit
Oil India reported consolidated revenue growth of 5.51% year on year, while expenses rose 1.08%, allowing operating profit to grow 14.70%. Operating margin widened 2.83 percentage points year on year and 5.17 percentage points sequentially. The quarter marks a recovery from the 27.44% margin in Q2FY26, with two consecutive quarters of improvement.
Other income and tax rate boosted profit quality
Net profit growth of 61.96% year on year was much faster than operating-profit growth because other income was 29.45% of pre-tax profit. The tax rate fell 9.46 percentage points year on year and 2.55 percentage points sequentially, further supporting net profit. Interest expense rose 56.10% year on year, while depreciation increased 31.08%, partly offsetting the operating improvement.
Oil India remained above the reported Energy peer median
Oil India's 35.3% operating margin was 20.71 percentage points above the 14.59% median for the 15 Energy peers that had reported the quarter. Sequentially, revenue rose 11.56% while expenses increased 3.31%, explaining the 5.17-percentage-point margin expansion.
Expansion remains centred on NRL and offshore assets
Management said NRL's FY26 capex is Rs 8,317 cr, including Rs 6,855 cr for refinery expansion, and that capacity expansion from 3 MMTPA to 9 MMTPA is underway. The company told investors it is pursuing offshore expansion through partnerships and deeper drilling to access harder-to-reach reserves. Management also said Oil India has a goal of achieving Net Zero by 2040.
The first-day gain was atypical for the stock
The shares gained 2.06% on the first trading day after the results, with a 3.61% opening gap and volume at 2.3 times the reference level. That direction differed from the stock's recent pattern: seven of eight result reactions were negative, with a median absolute move of 1.96%. The gain faded over time, with the stock down 4.68% after 15 sessions and 18.61% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹9,293 cr | ₹8,330 cr | +11.56% | +5.51% |
| Other income | ₹919 cr | ₹433 cr | +112.16% | +736.16% |
| Expenses | ₹6,012 cr | ₹5,820 cr | +3.31% | +1.08% |
| Operating profit | ₹3,281 cr | ₹2,510 cr | +30.70% | +14.70% |
| Operating margin (%) | 35.30% | 30.13% | — | — |
| Interest | ₹381 cr | ₹319 cr | +19.65% | +56.10% |
| Depreciation | ₹699 cr | ₹715 cr | -2.15% | +31.08% |
| Profit before tax | ₹3,119 cr | ₹1,910 cr | +63.31% | +42.26% |
| Tax | ₹695 cr | ₹474 cr | +46.53% | -0.14% |
| Net profit | ₹2,424 cr | ₹1,436 cr | +68.85% | +61.96% |
| EPS (₹) | ₹12.91 | ₹7.35 | +75.65% | +60.37% |
Operating margin of 35.30% compares with a Energy sector median of 14.59% across 15 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.06% | +0.88% |
| Next session | +2.21% | — |
| 5 sessions | -0.71% | -1.74% |
| 15 sessions | -4.68% | — |
| 30 sessions | -18.61% | — |
Volume on the results session was 2.30× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- OIL has a stated goal of achieving Net Zero by 2040.
Expansion
- FY26 NRL capex is INR 8,317 crore, including INR 6,855 crore for refinery expansion.
- NRL’s capacity expansion is underway from 3 MMTPA to 9 MMTPA.
New initiatives
- OIL is pursuing offshore expansion in high-potential clusters through a partnership-led play.
Problems & risks
- OIL is pursuing deeper depths to unlock hard-to-access reserves.
What to watch
- Whether consolidated operating margin holds above 35.3% after two consecutive quarterly increases.
- Whether other income remains below or above its 29.45% share of pre-tax profit.
- Progress on the reported NRL expansion from 3 MMTPA to 9 MMTPA alongside the Rs 8,317 cr FY26 capex.