Analyst Concall
Oil India plans FY6 capex at INR 70 bln on standalone basis
This story was originally published at 15:06 IST on 13 August 2025
Register to read our real-time news.Informist, Wednesday, Aug. 13, 2025
Please click here to read all liners published on this story
--Oil India: Target oil output of 3.70 mln tn in FY26, 3.95 mln tn in FY27
--CONTEXT: Comments by Oil India's mgmt in post-earnings analyst call
--Oil India: Plan capex of nearly INR 70 bln on standalone basis in FY26
--Oil India: Target gas output of 3.65 mln tn in FY26, 4.31 mln tn in FY27
--Oil India: Plan capex of over INR 140 bln in FY27
--Oil India: To inaugurate bio-ethanol plant in northeast in Sept
--Oil India:Plan solar plants in Assam, Rajasthan with total 1.9 GW capacity
--Oil India: To set up solar plants in Assam, Rajasthan by March
--Oil India: Achieved 80% physical progress in expansion of Numaligarh plant
--Oil India: Hope to start expanded Numaligarh refinery in phases from Dec
--Oil India: Do not expect major rise in crude oil prices going ahead
--Oil India: See crude oil price at $65-$70/bbl vs $66/bbl now
By Afra Abubacker and Sunil Raghu
MUMBAI/AHMEDABAD – Oil India Ltd. plans capital expenditure of INR 70 billion on a standalone basis and INR 91.3 billion on a consolidated basis in 2025-26 (Apr-Mar) with the focus being on expanding the refining capacity at Numaligarh Refinery Ltd. In FY27, the company is targeting capital expenditure of over INR 140 billion on a consolidated basis.
"For FY26, we have planned INR 6,995 crores or INR 7,000 crores on standalone basis...As far as 2026-27 is concerned, Oil India would be investing INR 7,585 crores, covering the various heads under which the investments will be made. And NRL (Numaligarh Refinery) investment would be INR 7,300 crores. So, total would be INR 14,000 plus crores for FY27," the company's management said in a post-earnings conference call Wednesday.
In FY26, the upstream producer aims to produce 3.70 million tonnes of crude oil and 3.65 million tonnes of gas. In FY27, Oil India aims to produce 3.95 million tonnes of crude oil and 4.31 million tonnes of gas, the management said. In FY25, the company had produced 3.45 million tonnes of crude oil and 3.25 million tonnes of gas.
"We are targeting for a good throughput of more than 3 MMT (million tonnes) this year. And with regard to refinery expansion, as has been informed, the commissioning of the (Numaligarh Refinery) project will start in phased manner from December 2025 itself," the company said. The company achieved around 80% of overall physical progress in refinery expansion at Numaligarh Refinery by the end of June quarter, it added.
The company said crude oil production in the June quarter fell 2% on year but rose over 1% from March quarter. Natural gas production rose 2.6% on quarter and 1.1% on year in the quarter, the company said.
On crude oil prices, the company said it does not expect a major rise in the days ahead. "Our outlook would be at best maybe $65-$70 per barrel. We are currently hovering at around $66-$67 per barrel."
The company reported weak earnings for the June quarter due to a 22% drop in crude oil price realisation. Oil India's standalone net profit fell 44.5% on year to INR 8.13 billion for the June quarter. Revenue for the quarter was INR 50.12 billion, down 14.2% on year.
Oil India paid excise duty of INR 800,000 for the June quarter, much lower than INR 5.08 billion paid in the year-ago quarter and unchanged from the March quarter. In December, the government scrapped the windfall tax imposed on crude oil produced from local fields.
"We have good news during the quarter, Oil India has discovered a hydrocarbon discovery in upper Assam. We have also commenced natural gas production from our discovered small fields in Rajasthan in the district of Jaisalmer," the management said.
"We have earmarked a sum of rupees INR 25,000 crores (INR 250 billion) to achieve our net zero target by the year 2040. So, investments will be made in different segments, starting from solar, wind energy," the management said.
The company plans to set up nearly 1.9 gigawatt of solar power projects in northeast, Assam, and Rajasthan. "Regarding solar project, we are aiming 645 megawatt in Assam, and 1 Gigawatt in Rajasthan, and 200 megawatt of new energy projects in Rajasthan," the company said. Oil India will inaugurate a bioethanol plant in northeast on Sept. 8, it added.
At 1356 IST, shares of Oil India were down 4.8% at INR 405 on the National Stock Exchange. The company announced the earnings on Tuesday after market hours. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
