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Oil Country Tubular Overview

1. Business Overview

Oil Country Tubular Ltd. (OCTL) is an Indian manufacturer of Oil Country Tubular Goods (OCTG). The company's core business involves the production of seamless pipes, primarily used in the exploration and production of oil and natural gas. Their product portfolio typically includes casing, tubing, drill pipes, and other specialized tubular accessories. OCTL operates as a business-to-business (B2B) supplier, serving national and international oil and gas companies, drilling contractors, and engineering, procurement, and construction (EPC) firms. The company generates revenue by manufacturing and selling these finished steel tubular products, often customized to client specifications and international standards (e.g., API certifications).

2. Key Segments / Revenue Mix

Oil Country Tubular Ltd. primarily operates in a single core segment: the manufacturing and sale of Oil Country Tubular Goods (OCTG). While specific revenue breakdowns by product type (e.g., casing vs. tubing) are not typically disclosed as separate segments, their entire business is focused on providing seamless steel tubes for the upstream oil and gas sector. Their revenue mix is therefore overwhelmingly dominated by sales to this industry, both domestically within India and through exports.

3. Industry & Positioning

The OCTG industry is a specialized niche within the broader steel manufacturing sector, characterized by high capital intensity, stringent quality requirements, and certifications (e.g., API specifications). It is cyclical, heavily influenced by global oil and gas prices, exploration and production (E&P) spending, and drilling activity. OCTL operates in a competitive landscape with both domestic and international players. While it may not be among the largest global OCTG manufacturers, it holds a position as an established Indian player, known for its API-certified products and ability to serve both domestic and export markets. Its positioning relies on product quality, adherence to international standards, and potentially cost-effectiveness for certain market segments.

4. Competitive Advantage (Moat)

OCTL's competitive advantages are primarily derived from:

Certifications and Quality: Holding critical certifications like API (American Petroleum Institute) ensures product quality and compliance, which is a significant barrier to entry and a trust factor in the demanding oil and gas industry.

Scale and Integrated Operations (to an extent): As an established manufacturer with operational facilities, it benefits from some economies of scale in production processes, though not necessarily on a global mega-player level.

Customer Relationships: Long-standing relationships with domestic and international oil and gas companies and drilling contractors can create a degree of stickiness due to product customization and critical application.

Specialized Manufacturing: Expertise in producing seamless pipes for high-pressure, corrosive environments represents a specialized capability not easily replicated by general steel manufacturers.

5. Growth Drivers

Increased Oil & Gas E&P Spending: A sustained recovery in crude oil and natural gas prices directly translates to higher capital expenditure by oil and gas companies on exploration and production, boosting demand for OCTG products.

Domestic Energy Security Push: India's focus on increasing domestic oil and gas production to reduce import dependence can drive demand for OCTG from national oil companies.

Exports to Developing Markets: Opportunities in other developing oil and gas producing regions, particularly in the Middle East, Africa, and Southeast Asia, can provide export growth avenues.

Infrastructure Projects: While primarily OCTG focused, any broader infrastructure development that requires specialized steel pipes could offer indirect benefits or diversification opportunities.

6. Risks

Commodity Price Volatility: Fluctuations in crude oil and natural gas prices directly impact drilling activity and E&P budgets, leading to volatile demand for OCTG. Similarly, volatility in steel raw material prices affects input costs.

Intense Competition: The OCTG market is competitive, with both large integrated global players and other regional manufacturers, leading to pricing pressures.

Economic Downturns: Global or regional economic slowdowns can depress energy demand, subsequently reducing E&P investments.

Regulatory & Environmental Shifts: Increasing global focus on renewable energy and stricter environmental regulations for fossil fuel extraction could pose long-term risks to the core business model.

Foreign Exchange Fluctuations: As an exporter and importer of raw materials, the company is exposed to currency risks.

Technological Obsolescence: While less common in basic tubular goods, advancements in drilling technology or alternative materials could pose risks in the long term.

7. Management & Ownership

Oil Country Tubular Ltd. is promoted by the S.R. Jiwrajka family, who founded the company. Promoter ownership typically constitutes a significant portion of the company's equity, indicating a strong controlling interest and long-term commitment. The management team would likely comprise experienced professionals from the steel and/or oil and gas sectors, focusing on operational efficiency, product quality, and market penetration. As a publicly listed company, it adheres to SEBI regulations for corporate governance and disclosures.

8. Outlook

The outlook for Oil Country Tubular Ltd. is inherently tied to the health and investment cycles of the global oil and gas industry. A sustained period of stable to increasing crude oil and natural gas prices, coupled with renewed capital expenditure in exploration and production, would provide a favorable environment for demand for their products. The company's established position and API certifications offer a competitive edge in securing contracts. However, the long-term global energy transition towards renewables presents a structural challenge, requiring potential diversification or a focus on niche, resilient segments within the oil and gas value chain (e.g., maintenance, specific drilling needs). Near-to-medium term prospects depend on the immediate recovery in drilling activity and the company's ability to manage raw material costs and operational efficiencies in a cyclical market.

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Oil Country Tubular Key Financials

Market Cap ₹305 Cr.

Stock P/E -9.6

P/B 16.3

Current Price ₹58.7

Book Value ₹ 3.6

Face Value 10

52W High ₹101

Dividend Yield 0%

52W Low ₹ 35.7

Oil Country Tubular Share Price

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Volume
Price

Oil Country Tubular Quarterly Price

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Oil Country Tubular Peer Comparison

Oil Country Tubular Quarterly Results

#(Fig in Cr.) Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025
Net Sales 1 6 11 25 22 41 34 25 10 6
Other Income 0 0 1 0 1 1 1 0 0 0
Total Income 1 6 12 25 23 42 35 25 11 6
Total Expenditure 3 4 8 18 16 24 22 16 12 10
Operating Profit -3 2 4 8 7 18 13 9 -2 -4
Interest 1 2 2 2 2 2 0 0 0 0
Depreciation 13 23 18 15 16 14 25 17 17 17
Exceptional Income / Expenses 0 0 -0 0 0 0 0 0 0 0
Profit Before Tax -17 -22 -16 -9 -10 2 -12 -8 -20 -21
Provision for Tax -2 -6 -1 1 3 0 -1 0 2 -4
Profit After Tax -15 -16 -15 -10 -13 2 -11 -9 -22 -17
Adjustments -0 0 -0 0 -0 -0 0 0 -0 0
Profit After Adjustments -15 -16 -15 -10 -13 2 -11 -9 -22 -17
Adjusted Earnings Per Share -3.3 -3.6 -3.3 -2.2 -3 0.4 -2.2 -1.7 -4.1 -3.4

Oil Country Tubular Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Net Sales 260 152 7 11 25 11 2 0 0 18 123 75
Other Income 4 12 5 1 3 2 3 0 142 1 3 1
Total Income 264 164 13 11 28 13 5 0 142 20 126 77
Total Expenditure 229 136 25 25 76 35 14 7 14 18 80 60
Operating Profit 34 28 -12 -14 -48 -22 -9 -7 128 2 46 16
Interest 16 17 18 20 15 19 22 25 12 6 6 0
Depreciation 22 23 22 22 21 21 20 19 30 72 70 76
Exceptional Income / Expenses 0 0 -52 0 0 0 0 0 0 -0 0 0
Profit Before Tax -4 -12 -105 -55 -85 -62 -51 -51 86 -76 -29 -61
Provision for Tax -2 -6 -15 -18 -2 0 0 0 -19 -6 3 -3
Profit After Tax -2 -7 -89 -37 -83 -62 -51 -51 105 -70 -32 -59
Adjustments 0 0 0 0 0 0 0 0 271 15 9 0
Profit After Adjustments -2 -7 -89 -37 -83 -62 -50 -51 376 -55 -23 -59
Adjusted Earnings Per Share -0.5 -1.5 -20.2 -8.4 -18.7 -14 -11.5 -11.6 23.6 -15.9 -6.7 -11.4

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 583% 0% 62% -7%
Operating Profit CAGR 2200% 0% 0% 3%
PAT CAGR 0% 0% 0% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR -13% 57% 50% 7%
ROE Average -301% -100% -60% -141%
ROCE Average -30% -7% -16% -17%

Oil Country Tubular Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 248 241 157 120 38 -24 -75 -126 250 195 231
Minority's Interest 0 0 0 0 0 0 0 0 0 0 0
Borrowings 0 0 0 0 3 3 38 81 66 90 18
Other Non-Current Liabilities 44 38 21 23 72 79 76 80 141 118 98
Total Current Liabilities 194 158 178 193 149 165 189 211 39 24 35
Total Liabilities 486 437 356 337 262 222 227 245 497 427 382
Fixed Assets 280 259 237 216 195 174 154 134 452 376 307
Other Non-Current Assets 59 58 6 10 3 3 2 2 1 1 2
Total Current Assets 147 120 113 111 64 45 71 109 44 51 73
Total Assets 486 437 356 337 262 222 227 245 497 427 382

Oil Country Tubular Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 10 9 1 1 0 3 0 0 0 0 2
Cash Flow from Operating Activities 52 1 8 38 20 12 -26 -27 169 -19 30
Cash Flow from Investing Activities -8 -2 0 -0 0 0 0 0 0 2 -0
Cash Flow from Financing Activities -39 0 -8 -38 -17 -15 26 27 -169 18 -19
Net Cash Inflow / Outflow 5 -1 -1 -0 3 -3 -0 0 0 1 12
Closing Cash & Cash Equivalent 9 5 1 0 3 0 0 0 0 2 13

Oil Country Tubular Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) -0.47 -1.49 -20.19 -8.35 -18.74 -14.03 -11.49 -11.59 23.63 -15.91 -6.66
CEPS(Rs) 4.46 3.76 -15.21 -3.47 -13.92 -9.28 -6.87 -7.21 30.38 0.25 7.89
DPS(Rs) 0 0 0 0 0 0 0 0 0 0 0
Book NAV/Share(Rs) 55.8 54.31 35.32 26.96 8.3 -5.67 -17.07 -28.71 -2.48 -6.21 10.16
Core EBITDA Margin(%) 11.77 10.47 -237.86 -136.8 -199.91 -220.54 -518.29 0 -5129.54 0.58 35.11
EBIT Margin(%) 4.82 3.15 -1171.26 -334.02 -273.36 -391.98 -1313.5 0 0 -386.44 -19.19
Pre Tax Margin(%) -1.43 -8.18 -1419.11 -517.7 -333.58 -560.42 -2286.24 0 0 -419.26 -23.68
PAT Margin (%) -0.8 -4.32 -1211.72 -346.58 -326.98 -562.37 -2286.24 0 0 -386.24 -25.92
Cash Profit Margin (%) 7.59 10.89 -912.57 -143.87 -242.81 -371.88 -1366.76 0 0 6.1 30.71
ROA(%) -0.4 -1.43 -22.55 -10.67 -27.69 -25.65 -22.64 -21.74 28.24 -15.26 -7.88
ROE(%) -0.84 -2.71 -45.06 -26.82 -106.31 -1068.19 0 0 0 0 -301.4
ROCE(%) 2.92 1.25 -25.86 -13.23 -34.79 -33.83 -30.05 -27.81 129.94 -119.83 -30.21
Receivable days 53.83 23.37 68.47 39.53 14.23 17.34 176.96 0 0 0.12 28.58
Inventory Days 171.29 253.46 4988.82 3361.2 1056 1429.66 5575.64 0 0 800.78 106.66
Payable days 123.57 132.78 1810.87 1190.2 92.06 199.63 686.14 0 7413.28 -605.87 44.44
PER(x) 0 0 0 0 0 0 0 0 0.59 0 0
Price/Book(x) 0.54 0.45 1.3 1.19 1.78 -0.55 -0.34 -0.32 -5.64 -5.64 7.26
Dividend Yield(%) 0 0 0 0 0 0 0 0 0 0 0
EV/Net Sales(x) 1.06 1.53 45.64 24.68 7.11 12.31 88.08 0 464.27 13.27 3.08
EV/Core EBITDA(x) 7.99 8.31 -27.7 -18.61 -3.76 -6.11 -22.35 -36.24 1 155.5 8.23
Net Sales Growth(%) -27.54 -41.49 -95.15 43.14 140.29 -56.48 -79.86 -100 0 6534.92 573.83
EBIT Growth(%) -63.95 -61.66 -1896.08 58.77 -94.69 37.59 32.5 8.79 467.25 -171.99 66.54
PAT Growth(%) -120.06 -215.79 -1255.48 58.65 -124.43 25.15 18.11 -0.88 303.95 -167.3 54.77
EPS Growth(%) -120.05 -215.81 -1255.48 58.65 -124.44 25.15 18.11 -0.88 303.96 -167.3 58.13
Debt/Equity(x) 0.61 0.54 0.9 1.02 3.28 -4.93 -2.27 -1.75 -5.99 -3.28 0.92
Current Ratio(x) 0.76 0.76 0.63 0.57 0.43 0.27 0.38 0.52 1.11 2.15 2.08
Quick Ratio(x) 0.2 0.1 0.08 0.06 0.11 0.04 0.22 0.38 0.12 0.4 1.21
Interest Cover(x) 0.77 0.28 -4.73 -1.82 -4.54 -2.33 -1.35 -1.08 8.21 -11.78 -4.28
Total Debt/Mcap(x) 1.11 1.22 0.69 0.86 1.84 8.93 6.73 5.41 1.06 0.58 0.13

Oil Country Tubular Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 49.22 49.22 49.22 49.22 49.22 49.22 56.74 56.73 47.23 47.23
FII 0.01 0.01 0.01 0.01 0.01 0.03 0.07 0.17 0.04 0.02
DII 0.12 0.12 0.12 0.12 0.12 0.12 0.1 0.1 0.1 0.1
Public 50.65 50.65 50.65 50.65 50.65 50.63 43.09 43 52.63 52.65
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

Oil Country Tubular News

Oil Country Tubular Pros & Cons

Pros

  • Company has reduced debt.

Cons

  • Promoter holding is low: 47.23%.
  • Company has a low return on equity of -100% over the last 3 years.
  • Debtor days have increased from -605.87 to 44.44days.
  • Stock is trading at 16.3 times its book value.
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