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Informist, Monday, Nov. 17, 2025

 

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--Oil India: Q2 output hit due to external reasons in Northeast, now normal
--CONTEXT: Comments by Oil India's management in post-earnings analyst call
--Oil India: See no major rise in Gabon, Bangladesh costs, to exit Gabon
--Oil India: Mechanical work on Duliajan-Numaligarh gas pipeline complete
--Oil India: FY26 planned capex INR 70 bln, spent INR 55.61 bln in H1
--Oil India: May exceed FY26 planned capex of INR 70 bln
--Oil India: Aim to compensate H1 production shortfall in H2
--Oil India: See FY26 oil output at 3.55 mln tn, below 3.77 mln tn target
--Oil India: Target oil output of 3.75 mln tn in FY27, 4 mln tn in FY28
--Oil India: See gas output in FY26 3.6 bln cu mtr, 4.31 bln cu mtr in FY27
--Oil India: See gas output in FY28 at 4.6 bln cu mtr
--Oil India: No planned shutdown of Numaligarh refinery FY26, likely in FY27
--Oil India: Open to Russian crude imports if not under sanctions
 

 

By Sunil Raghu and Avishek Rakshit

 

AHMEDABAD/KOLKATA – Oil India Ltd. is likely to overshoot its earlier announced planned capital expenditure of INR 70 billion for 2025-26 (Apr-Mar), the company's management said in an analyst call on Monday post the September quarter earnings.

 

"As of now, till date, what we have been able to achieve is around 5,561 crores (INR 55.61 billion) has already been spent on account of our capex expenses...so our achievement to a large extent is around 70-75% within the last seven months. We are expecting to be beyond our budgeted figure," the management said.

 

It went on to cite an example of its capex numbers for 2024-25 (Apr-Mar), when against the budgeted capex of INR 68.80 billion, the company spent INR 80 billion. "So, basically, going by our track record, we exceed the budget provision. So, the same is likely to happen this year too," the management said. 

 

While the company says it will over-achieve its capex target for FY26, it expects itself to fall short on the crude oil and natural gas production targets set for itself. The management, which had announced after the June quarter earnings that Oil India could produce 3.70 million tonnes of crude oil in FY26, Monday said the final figure could be around 3.55 million tonnes. For FY27, the aim now is to produce 3.75 million tonnes of oil and 4 million tonnes in FY28. For FY27, the earlier target was 3.95 million tonnes.

 

On natural gas output, the management was more or less in sync with what it had said after the June quarter earnings. It had expected gas output to be at 3.65 billion cubic metres for FY26 and 4.31 billion cubic metres in FY27. On Monday, Oil India's management said its natural gas output could be 3.6 billion cubic metres in FY26, 4.31 billion cubic metres in FY27, and 4.6 billion cubic metres in FY28. 

 

The company management said that one of the reasons for impact on company's output was shutdown it was forced to take in North Eastern part of India. Some of the people in the region resorted to economic blockage due to some ethnic strife. This affected operations of Oil India in the region."…in the process what happened is that we had to close down because people cannot move or work inside and outside the facilities, oil facilities," he management said. The situation has since improved and Oil India is back to its optimum capacity of oil production and hopes to compensate any shortfall in the Apr-Sept period in Oct-Mar timeframe.

 

Sharing operational updates, the management said that while the expansion of its Numaligarh refinery in Assam was on track, it had no shutdown plans for FY26, though this could happen in FY27. Asked whether the company would source Russian crude oil for its expanded refinery capacity, the management said it had identified 100 varities of crude oil that could be used in the Numaligarh refinery. However, the decision to source Russian crude would depend on economic benefits and whether it was under any international sanctions or not. "The decision would be taken closer to commissioning of expanded capacity," the management said. The company has completed mechanical work related to its Duliajan Numaligarh pipeline of around 190 kilometres to supply more natural gas to the Numaligarh refinery.

 

Talking about its international operations in Gabon and Bangladesh, the company's management said it had decided to exit some projects in these countries. Among the projects it proposes to exit is one in Bangladesh – a 50:50 joint venture with Oil and Natural Gas Corp. Ltd. Oil India made a provision of INR 7 billion as 'write-off' for its investments in these projects.

 

Oil India Ltd. Friday reported a sharp drop in profitability for the Jul–Sept quarter as lower crude oil realisations and weaker margins largely offset stable revenues. The state-owned oil explorer posted a standalone net profit of INR 10.44 billion, down 43% from a year earlier, way short of the Street estimate of INR 15.28 billion. Revenue from operations was at INR 54.57 billion, slightly below INR 55.19 billion a year ago, but above analysts' estimate of INR 52.88 billion.

 

The decline in profits was due to a notable slide in crude prices. Oil India's crude oil realisation in the quarter fell to $68.19 per barrel from $79.33 a year ago, the company said in a release. Correspondingly, crude oil revenue dropped to INR 35.12 billion from INR 39.79 billion a year ago.

 

At 1319 IST, shares of Oil India were up over 1% at INR 441.50 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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