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Oil India Overview

1. Business Overview

Oil India Ltd. (OIL) is India's second-largest state-owned upstream oil and gas company. Its core business involves the exploration, development, and production of crude oil and natural gas. The company also has significant operations in crude oil transportation through pipelines and has diversified into related areas like LPG production, renewable energy (solar, wind), and petrochemicals. OIL generates revenue primarily by selling crude oil and natural gas extracted from its domestic and international fields, and through tariff for crude oil transportation.

2. Key Segments / Revenue Mix

The company's primary business segment is Exploration & Production (E&P) of crude oil and natural gas, which accounts for the vast majority of its revenue and profits. It also has a segment for Crude Oil Transportation (pipelines), and minor contributions from Renewable Energy and other related activities (e.g., LPG). While exact percentage breakdowns vary year-on-year, E&P remains the dominant revenue driver.

3. Industry & Positioning

The Indian oil and gas exploration and production industry is characterized by high capital intensity, long gestation periods, and significant regulatory oversight. It is dominated by public sector undertakings (PSUs) like ONGC and Oil India Ltd. OIL is positioned as the second-largest national E&P company in India, primarily operating in the prolific North-Eastern region (Assam, Arunachal Pradesh) with a significant acreage. It also holds participating interests in various blocks across India and overseas in countries like Russia, USA, Gabon, and Mozambique. It competes with ONGC for domestic block allocations and with international players for overseas assets.

4. Competitive Advantage (Moat)

Resource Access & Scale: OIL possesses an extensive portfolio of discovered and producing oil and gas fields, particularly in the strategically important North-Eastern region of India. Being a state-owned enterprise provides a certain advantage in securing domestic exploration blocks and navigating regulatory landscapes.

Established Infrastructure: The company has well-established production, processing, and transportation infrastructure (pipelines) in its operating areas, which would be costly and time-consuming for new entrants to replicate.

Technical Expertise: Decades of operational experience in challenging geological conditions and access to technical talent required for complex E&P operations.

5. Growth Drivers

Increased E&P Investment: Higher capital expenditure on exploration, enhanced oil recovery (EOR) techniques for existing fields, and new field development to boost domestic production.

Acquisitions & International Expansion: Strategic acquisitions of producing assets or exploration blocks domestically and internationally to augment reserves and production.

Government Focus on Domestic Production: Indian government's impetus to reduce crude oil import dependency could lead to favorable policies for domestic E&P companies like OIL.

Natural Gas Monetization: Increased focus on monetizing its natural gas reserves, supported by favorable gas pricing reforms.

Diversification: Expansion into new energy sources like renewables (solar, wind) and other related energy businesses to build a more sustainable portfolio.

6. Risks

Commodity Price Volatility: Highly exposed to fluctuations in global crude oil and natural gas prices, which directly impact revenue and profitability.

Exploration Risk: Uncertainty inherent in exploration activities; a significant portion of capital is deployed with no guarantee of commercially viable discoveries.

Regulatory & Policy Risk: Changes in government policies related to subsidy sharing mechanisms, environmental regulations, taxation, and allocation of exploration blocks can significantly impact operations and financial performance.

Geopolitical & Operational Risks: Operations in certain domestic (e.g., insurgency in North-East) and international regions may be exposed to geopolitical instability, security threats, and operational disruptions.

Environmental Concerns: Risk of environmental damage (e.g., oil spills, gas leaks) leading to regulatory penalties, reputational damage, and increased operational costs.

Depleting Reserves: Challenge of consistently replacing produced reserves with new discoveries to maintain long-term production levels.

7. Management & Ownership

Oil India Ltd. is a Public Sector Undertaking (PSU), with the majority ownership held by the Government of India. The Board of Directors typically consists of a mix of experienced professionals from the oil and gas sector, government nominees, and independent directors. Management decisions are often aligned with government policies and national energy security objectives, alongside commercial considerations.

8. Outlook

OIL's outlook is a balance between its foundational role in India's energy security and the inherent volatility of the global energy sector. The company benefits from a strong asset base in India's prime hydrocarbon-producing region and government support for domestic production. However, its performance is highly sensitive to international crude oil and natural gas prices. Future growth hinges on successful exploration efforts, effective enhanced oil recovery from mature fields, strategic domestic and international acquisitions, and the successful execution of its diversification strategy into renewable energy. Regulatory stability and a supportive pricing regime for domestic oil and gas will be crucial for maintaining profitability and funding its substantial capital expenditure requirements.

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Oil India Key Financials

Market Cap ₹82314 Cr.

Stock P/E 11.7

P/B 1.4

Current Price ₹506.1

Book Value ₹ 356.6

Face Value 10

52W High ₹531

Dividend Yield 2.27%

52W Low ₹ 384.6

Oil India Share Price

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Volume
Price

Oil India Quarterly Price

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Oil India Peer Comparison

Oil India Quarterly Results

#(Fig in Cr.) Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Net Sales 10913 10166 9351 8136 9089 9588 8750 9175 9111 10013
Other Income 580 209 231 751 302 382 256 517 657 502
Total Income 11493 10375 9582 8887 9391 9970 9006 9693 9768 10515
Total Expenditure 7469 6905 6209 5600 6411 6727 6399 6872 6601 6732
Operating Profit 4024 3471 3373 3287 2980 3243 2607 2821 3167 3783
Interest 236 234 242 280 304 244 199 305 319 381
Depreciation 576 576 553 608 624 533 627 671 715 699
Exceptional Income / Expenses -1 9 0 0 0 0 0 0 0 0
Profit Before Tax 3210 2669 2578 2400 2053 2465 1780 1844 2134 2702
Provision for Tax 659 695 685 557 459 696 459 404 474 695
Profit After Tax 2551 1974 1892 1843 1593 1769 1322 1440 1659 2008
Adjustments -204 167 -7 173 -254 -459 575 -11 -464 92
Profit After Adjustments 2347 2141 1886 2016 1339 1310 1896 1429 1195 2100
Adjusted Earnings Per Share 14.4 13.2 11.6 12.4 8.2 8.1 11.7 8.8 7.3 12.9

Oil India 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 9978 9821 9566 10698 13780 18612 17616 25906 36084 32466 32512 37049
Other Income 1287 1256 1421 1010 1127 1323 1195 1192 759 1406 1695 1932
Total Income 11266 11077 10987 11708 14907 19935 18811 27098 36843 33872 34207 38982
Total Expenditure 6375 6235 6447 6770 8190 13300 12017 15455 20856 20025 21325 26604
Operating Profit 4891 4841 4540 4938 6717 6635 6794 11643 15987 13847 12883 12378
Interest 349 389 441 554 624 647 660 940 901 964 1069 1204
Depreciation 865 1070 1180 1327 1541 1786 1844 1824 1947 2129 2318 2712
Exceptional Income / Expenses 0 -215 -1152 0 -1027 -230 -449 0 0 -2366 0 0
Profit Before Tax 3677 3324 2292 3859 4677 5030 4369 8990 13144 8846 9436 8460
Provision for Tax 1192 1244 696 1124 1439 25 223 2271 3289 1865 2397 2032
Profit After Tax 2485 2080 1597 2735 3238 5005 4146 6719 9854 6980 7040 6429
Adjustments 124 0 0 0 0 -304 -618 -1098 -1126 -645 -489 192
Profit After Adjustments 2608 2080 1597 2735 3238 4701 3528 5622 8729 6335 6551 6620
Adjusted Earnings Per Share 14.5 11.5 8.9 24.1 19.9 28.9 21.7 34.6 53.7 38.9 40.3 40.7

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 0% 8% 12% 13%
Operating Profit CAGR -7% 3% 14% 10%
PAT CAGR 1% 2% 7% 11%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR 20% 42% 41% 16%
ROE Average 14% 20% 20% 15%
ROCE Average 14% 19% 18% 14%

Oil India 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 21501 25178 29519 29030 28974 23211 23666 30562 38481 48339 49768
Minority's Interest 0 0 0 0 0 1070 1143 2614 3371 4287 4938
Borrowings 8399 9133 8948 10690 10755 12670 15105 16388 18246 19284 27764
Other Non-Current Liabilities 2450 3028 4227 4538 4528 4425 4795 5562 5186 5886 6757
Total Current Liabilities 5574 3657 9509 6026 10929 17991 13968 10207 14064 20478 18684
Total Liabilities 37925 40996 52204 50285 55186 59366 58679 65334 79348 98274 107911
Fixed Assets 12676 7576 9019 10620 10420 13930 14552 15745 16987 19144 21104
Other Non-Current Assets 9699 18217 30322 29506 30158 29987 30410 36080 42350 56270 64631
Total Current Assets 15550 15202 12862 10159 14609 15450 13717 13509 20011 22859 22175
Total Assets 37925 40996 52204 50285 55186 59366 58679 65334 79348 98274 107911

Oil India 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 11660 137 185 192 204 3705 659 1079 582 341 310
Cash Flow from Operating Activities 1754 3597 3114 3933 5023 6493 5235 9310 11410 10933 11332
Cash Flow from Investing Activities -1928 -2677 -6139 1458 -584 -2213 -8513 -4193 -9131 -12601 -13514
Cash Flow from Financing Activities -2603 -871 2758 -5698 -940 -7331 3702 -5615 -2521 1637 2483
Net Cash Inflow / Outflow -2778 49 -267 -307 3498 -3052 425 -499 -242 -31 301
Closing Cash & Cash Equivalent 8819 185 192 204 3709 659 1079 582 341 310 611

Oil India 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) 14.46 11.53 8.85 24.1 19.91 28.9 21.69 34.56 53.66 38.95 40.27
CEPS(Rs) 18.57 17.47 15.4 35.79 29.38 41.75 36.83 52.52 72.55 56 57.53
DPS(Rs) 6.67 5.33 6.33 10 6.83 7.07 3.33 9.5 13.33 9.67 11.5
Book NAV/Share(Rs) 119.23 139.61 163.69 255.79 178.13 142.69 145.49 187.89 236.57 297.18 305.96
Core EBITDA Margin(%) 36.11 36.51 32.61 36.71 40.57 25.74 24.9 34.82 37.12 34.27 30.94
EBIT Margin(%) 40.35 37.8 28.57 41.25 38.47 27.5 22.37 33.09 34.23 27.02 29.05
Pre Tax Margin(%) 36.85 33.84 23.96 36.07 33.94 24.37 19.43 29.96 32.04 24.37 26.09
PAT Margin (%) 24.9 21.17 16.69 25.56 23.5 24.25 18.44 22.39 24.02 19.23 19.47
Cash Profit Margin (%) 33.57 32.07 29.03 37.96 34.68 32.9 26.64 28.47 28.77 25.09 25.88
ROA(%) 6.7 5.27 3.43 5.34 6.14 8.74 7.02 10.84 13.62 7.86 6.83
ROE(%) 11.78 8.91 5.84 9.34 11.16 19.18 17.69 24.78 28.55 16.08 14.35
ROCE(%) 13.11 11.34 6.95 10.38 12.41 14.18 12.73 22.05 27 15.21 13.86
Receivable days 52.4 68.98 44.63 41.37 36.17 24.93 27.25 21.93 18.46 28.82 33.38
Inventory Days 37.24 38.15 40.03 37.1 30.44 37.87 51.02 43.38 40.15 48.25 48.09
Payable days 0 8203.03 -4178.1 4279.49 1204.35 85.52 122.14 104.15 79.52 87.31 97.77
PER(x) 10.46 9.06 16.74 5.96 6.21 1.91 3.77 4.6 3.13 10.27 9.59
Price/Book(x) 1.27 0.75 0.91 0.56 0.69 0.39 0.56 0.85 0.71 1.35 1.26
Dividend Yield(%) 4.41 5.1 4.27 6.97 5.53 12.82 4.08 5.98 7.95 2.42 2.98
EV/Net Sales(x) 2.76 1.89 3.58 2.36 2.09 0.94 1.77 1.57 1.17 2.55 2.63
EV/Core EBITDA(x) 5.63 3.83 7.54 5.12 4.29 2.63 4.58 3.5 2.65 5.98 6.63
Net Sales Growth(%) 2.98 -1.58 -2.59 11.83 28.82 35.06 -5.35 47.06 39.29 -10.03 0.14
EBIT Growth(%) -8.77 -7.79 -26.4 61.48 20.12 7.09 -11.41 97.46 41.43 -30.15 7.1
PAT Growth(%) -14.97 -16.31 -23.23 71.28 18.4 54.59 -17.17 62.07 46.66 -29.16 0.85
EPS Growth(%) -12.77 -20.27 -23.22 172.17 -17.39 45.2 -24.96 59.35 55.27 -27.42 3.41
Debt/Equity(x) 0.42 0.39 0.48 0.42 0.52 0.55 0.82 0.54 0.48 0.49 0.6
Current Ratio(x) 2.79 4.16 1.35 1.69 1.34 0.86 0.98 1.32 1.42 1.12 1.19
Quick Ratio(x) 2.6 3.88 1.24 1.51 1.23 0.69 0.75 0.94 1.06 0.9 0.92
Interest Cover(x) 11.53 9.55 6.2 7.97 8.5 8.78 7.61 10.56 15.59 10.18 9.83
Total Debt/Mcap(x) 0.33 0.52 0.53 0.5 0.75 1.42 1.46 0.64 0.68 0.36 0.47

Oil India Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 56.66 56.66 56.66 56.66 56.66 56.66 56.66 56.66 56.66 56.66
FII 10.96 9.48 9.3 10.56 9.42 8.51 8.16 7.56 7.53 7.67
DII 25.87 27.56 27.81 26.32 27.12 28.18 28.28 29.09 29.3 29.31
Public 6.51 6.31 6.24 6.46 6.8 6.66 6.91 6.69 6.51 6.37
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

Oil India News

Oil India Pros & Cons

Pros

Cons

  • Debtor days have increased from 87.31 to 97.77days.
  • The company has delivered a poor profit growth of 7% over past five years.
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