Oil India Limited , a Maharatna CPSE under the Government of India, has released its financial results for the first quarter, revealing a mixed performance amidst challenging market conditions.

Financial Performance

The company reported a consolidated Profit After Tax (PAT) of ₹2,046.51 crore, marginally higher than the ₹2,016.30 crore recorded in the same quarter of the previous fiscal year. However, on a standalone basis, Oil India's PAT decreased to ₹813.48 crore from ₹1,466.84 crore in the corresponding quarter.

The decline in standalone profit can be attributed to a significant drop in crude oil price realization. The company saw its crude price realization fall by 22%, from $84.89 per barrel to $66.20 per barrel.

Key Financial Metrics

Operational Highlights

Despite the financial challenges, Oil India maintained its production levels:

• Oil & Gas Production: Sustained at 1.680 MMTOE (Million Metric Tonnes of Oil Equivalent), compared to 1.689 MMTOE in the same quarter of the previous year
• New Discoveries: Made a hydrocarbon discovery at the Namrup-Borhat OALP block
• Production Commencement: Began gas production from the Bakhritibba Discovered Small Field (DSF) block in Rajasthan's Jaisalmer District

Subsidiary Performance

Oil India's material subsidiary, NRL (Numaligarh Refinery Limited), maintained its performance:

• Crude Throughput: 799 TMT (Thousand Metric Tonnes), up from 764 TMT in the corresponding quarter of the previous year

Corporate Developments

In its 570th Board of Directors meeting, Oil India also approved the following:

1. Appointment of M/s Shome & Banerjee as Cost Auditors for the financial year
2. Appointment of M/s VAP & Associates as Secretarial Auditors for a term of five years, subject to shareholder approval

Outlook

While Oil India has managed to sustain its production levels and slightly improve its consolidated PAT, the company faces challenges due to volatile crude oil prices. The significant drop in crude price realization has impacted its standalone profitability. However, the company's efforts in maintaining production levels and exploring new fields demonstrate its commitment to ensuring energy security and sustainable growth.

As Oil India navigates through these market conditions, investors and industry observers will be keenly watching how the company adapts its strategies to mitigate the impact of lower crude prices while continuing to focus on exploration and production activities.

Oil India Limited (OIL) has taken a significant step towards diversifying its portfolio and contributing to India's fertilizer production capacity. The company has announced the incorporation of a new joint venture named 'Assam Valley Fertilizer and Chemical Company Limited' (AVFCCL) to establish an Ammonia-Urea Complex at Namrup, Assam.

Joint Venture Details

The joint venture, incorporated on July 25, 2025, brings together several key players in the Indian energy and fertilizer sectors:

• Government of Assam (GoA)
• Oil India Limited (OIL)
• National Fertilizers Limited (NFL)
• Hindustan Urvarak & Rasayan Limited (HURL)
• Brahmaputra Valley Fertilizer Corporation Limited (BVFCL)

Oil India Limited holds an 18% stake in AVFCCL, having subscribed to 18,000 equity shares at Rs. 10 each, for a total investment of Rs. 1,80,000.

Project Scope

The primary objective of AVFCCL is to set up a new Ammonia-Urea Complex, known as the Namrup IV Fertilizer Plant, in Namrup, Assam. This project aligns with the government's efforts to enhance domestic fertilizer production and reduce import dependency.

Capital Structure

The initial capital structure of AVFCCL is as follows:

Regulatory Approvals

The joint venture's establishment is subject to approval from the Department of Fertilizers, Ministry of Chemicals and Fertilizers, Government of India. This regulatory green light is crucial for the project to move forward.

Strategic Implications

For Oil India Limited, this venture represents a strategic move to diversify its business interests beyond its core oil and gas operations. By entering the fertilizer sector, OIL is positioning itself to contribute to India's agricultural productivity and food security goals.

The formation of AVFCCL also demonstrates a collaborative approach between public sector entities and state governments to address the country's fertilizer needs. This joint effort could potentially serve as a model for future projects in critical sectors.

As the project develops, it is expected to have significant implications for the local economy in Assam, potentially creating jobs and stimulating ancillary industries in the region.

Investors and industry observers will be keenly watching the progress of this venture, as it could signal new growth avenues for Oil India Limited and impact the domestic fertilizer market dynamics in the coming years.