{"id":29186,"date":"2026-02-27T11:05:03","date_gmt":"2026-02-27T05:35:03","guid":{"rendered":"https:\/\/signalz.pro\/?post_type=media-review&p=29186"},"modified":"2026-03-12T09:50:41","modified_gmt":"2026-03-12T04:20:41","slug":"29186","status":"publish","type":"media-review","link":"https:\/\/signalz.pro\/media-review\/29186\/","content":{"rendered":"

Oil India Ltd (OIL) is a mid\u2011cap PSU exploration & production (E&P) company that currently looks reasonably attractive on valuation, but with sector\u2011specific risks (crude\u2011price volatility and execution risk).<\/p>\n

Business and earnings profile<\/strong><\/p>\n

Oil India is primarily engaged in exploration, development and production of crude oil and natural gas, plus transportation of crude and LPG production.<\/p>\n

Recent trailing <\/strong>12<\/strong>\u2011<\/strong>month data show<\/strong>:<\/p>\n

Revenue around \u20b935,800 crore, with EBITDA ~\u20b911,500 crore and net profit ~\u20b96,000 crore.<\/p>\n

Healthy net margin (~16\u201317%) and solid ROE (~10\u201311%), indicating decent profitability and capital efficiency.<\/p>\n

    \n
  1. Business model and segments<\/strong><\/li>\n<\/ol>\n

    Core business:<\/strong><\/p>\n

    Exploration, development, and production of crude oil and natural gas in India (upstream E&P).<\/p>\n

    Also produces LPG and provides pipeline transportation for crude oil and petroleum products, giving it a partial midstream footprint.<\/p>\n

    Operations footprint:<\/strong><\/p>\n

    Onshore:<\/strong> Assam, Arunachal Pradesh, Mizoram, Tripura, Nagaland, Odisha, Andhra Pradesh, Rajasthan.<\/p>\n

    Offshore<\/strong>: Andaman, Kerala\u2013Konkan, and KG shallow\u2011water blocks.<\/p>\n

    Segments (broad buckets):<\/strong><\/p>\n

      \n
    1. Crude oil<\/li>\n
    2. Natural gas<\/li>\n
    3. LPG<\/li>\n
    4. Pipeline transportation<\/li>\n
    5. Renewable energy (small but growing; wind\/solar projects)<\/li>\n<\/ol>\n

      \u00a0<\/strong><\/p>\n

      Ownership:<\/strong><\/p>\n

      Public sector undertaking (PSU) under the Ministry of Petroleum & Natural Gas, majority\u2011owned by the Government of India.<\/p>\n

        \n
      1. Key financials (recent years, consolidated)<\/strong><\/li>\n<\/ol>\n

        All figures rounded for quick scanning; units are \u20b9 crore unless specified. Data is primarily for FY24\u2013FY25 and FY26\u2011Q3 equivalent.<\/p>\n

        Income statement <\/strong><\/p>\n

        Revenue:<\/strong><\/p>\n

        FY25:<\/strong> ~\u20b932,500\u201333,500 crore range (exact ~\u20b932,512\u201333,461 crore across sources).<\/p>\n

        FY24<\/strong>: ~\u20b932,500\u201336,100 crore (high\u2011growth year due to strong oil\/gas prices).<\/p>\n

        EBITDA:<\/strong><\/p>\n

        FY25<\/strong>: ~\u20b911,300\u201311,500 crore (EBITDA margin ~34\u201335%)<\/p>\n

        Earlier FY24:<\/strong> closer to ~\u20b914,100 crore (higher margin year).<\/p>\n

        Net profit:<\/strong><\/p>\n

        FY25:<\/strong> ~\u20b96,500\u20136,600 crore (net margin ~19\u201320%)<\/p>\n

        FY24:<\/strong> ~\u20b98,700 crore (strong\u2011earnings year).<\/p>\n

        Trends (Q3 FY26 note):<\/strong><\/p>\n

        Dec<\/strong>\u2011<\/strong>2025 quarter: revenue<\/strong> ~\u20b98,330 crore; net profit<\/strong> ~\u20b91,195 crore (down ~11% YoY) due to margin compression and lower realisation vs Q3 FY25.<\/p>\n

        EBITDA in Dec<\/strong>\u2011<\/strong>2025 quarter<\/strong> ~\u20b93,167 crore (slightly up YoY).<\/p>\n

        Margins and quality indicators<\/strong><\/p>\n

        Operating profit margin:<\/strong> in recent quarters ~35\u201345% range (volatile with oil\/gas prices).<\/p>\n

        Net profit Margin<\/strong>: FY25: ~19\u201320%<\/p>\n

        Recent quarters: <\/strong>dropped to ~16% in one quarter (Jun\u201125) due to tax\/realisation pressure.<\/p>\n

        Balance sheet and leverage<\/strong><\/p>\n

        Total assets:<\/strong> ~\u20b91,04 lakh crore as of FY25 (up from ~\u20b97.4 lakh crore in FY23), reflecting heavy capex and consolidation.<\/p>\n

        Equity \/ net worth:<\/strong> ~\u20b95.47 lakh crore, indicating a strong book\u2011value cushion.<\/p>\n

        Debt:<\/strong> Net debt is positive but not extremely high; leverage is moderate for an E&P company, with a focus on funding capex and buybacks\/dividends.<\/p>\n

        Cash flows and shareholder return<\/strong><\/p>\n

        Operating cash flow<\/strong><\/p>\n

        FY25:<\/strong> ~\u20b91.13 lakh crore inflow, very healthy.<\/p>\n

        Investing cash flow:<\/strong> large outflows (\u20b91.3\u20131.6 lakh crore range in recent years) reflecting exploration and field\u2011development capex.<\/p>\n

        Free cash flow<\/strong>: sometimes negative in capex\u2011heavy years, but overall supports dividends and buybacks.<\/p>\n

        Dividend + buyback:<\/strong><\/p>\n

        OIL has periodically announced buybacks and special dividends, signalling strong cash generation and shareholder\u2011friendly policy.<\/p>\n

          \n
        1. Key strengths and risks<\/strong><\/li>\n<\/ol>\n

          Strengths<\/strong><\/p>\n

            \n
          1. PSU\u2011backed E&P franchise:<\/li>\n
          2. Long\u2011term exploration licenses in mature and emerging basins; strong relationship with the government and access to blocks.<\/li>\n<\/ol>\n

            Integrated footprint:<\/strong><\/p>\n

            Links upstream (oil\/gas) with midstream (pipelines, LPG) and now a small renewable\u2011energy wing, giving some diversification.<\/p>\n

            Healthy profitability and cash flow:<\/strong><\/p>\n

            High EBITDA margins and strong operating cash flow at current crude prices support dividends and capex.<\/p>\n

             <\/p>\n

            Risks<\/strong><\/p>\n

            Commodity price volatility:<\/strong><\/p>\n

            Earnings are highly sensitive to crude oil and gas realisations; a sustained price drop can hit margins sharply.<\/p>\n

            Capex and execution risk:<\/strong><\/p>\n

            Large exploration and field\u2011development capex; if projects underperform or are delayed, returns and near\u2011term earnings can weaken.<\/p>\n

            Policy and regulatory risk:<\/strong><\/p>\n

            Pricing, gas\u2011regime changes, taxation, and environmental norms can materially impact economics.<\/p>\n

            OIL-2 RR<\/a><\/p>\n

             <\/p>\n","protected":false},"comment_status":"closed","ping_status":"closed","template":"","media-category":[9],"media-subscription":[],"call-tags":[],"class_list":["post-29186","media-review","type-media-review","status-publish","hentry","media-category-stock-exchange"],"acf":[],"_links":{"self":[{"href":"https:\/\/signalz.pro\/api\/wp\/v2\/media-review\/29186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/signalz.pro\/api\/wp\/v2\/media-review"}],"about":[{"href":"https:\/\/signalz.pro\/api\/wp\/v2\/types\/media-review"}],"replies":[{"embeddable":true,"href":"https:\/\/signalz.pro\/api\/wp\/v2\/comments?post=29186"}],"version-history":[{"count":2,"href":"https:\/\/signalz.pro\/api\/wp\/v2\/media-review\/29186\/revisions"}],"predecessor-version":[{"id":30879,"href":"https:\/\/signalz.pro\/api\/wp\/v2\/media-review\/29186\/revisions\/30879"}],"wp:attachment":[{"href":"https:\/\/signalz.pro\/api\/wp\/v2\/media?parent=29186"}],"wp:term":[{"taxonomy":"media-category","embeddable":true,"href":"https:\/\/signalz.pro\/api\/wp\/v2\/media-category?post=29186"},{"taxonomy":"media-subscription","embeddable":true,"href":"https:\/\/signalz.pro\/api\/wp\/v2\/media-subscription?post=29186"},{"taxonomy":"call-tags","embeddable":true,"href":"https:\/\/signalz.pro\/api\/wp\/v2\/call-tags?post=29186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}