NewsEarningsOil India Reports Q2 FY26 Results Amid Production Challenges and Exploration Write-offsOil India Reports Q2 FY26 Results Amid Production Challenges and Exploration Write-offs
Oil India Limited reported Q2 FY26 standalone revenue of INR 5,456.00 crores and PAT of INR 1,044.00 crores. Crude oil production declined 2.58% YoY to 0.85 million metric tons, with average realization falling 18.11% to USD 68.19 per barrel. The company faced production disruptions due to ethnic group blockades in the Northeast. Exploration write-offs totaled INR 723.00 crores for Andaman wells. Despite challenges, Oil India drilled 18 new wells, achieving 100% of the target. The company revised its FY26 oil production outlook to 3.55 million metric tons. An interim dividend of INR 3.50 per share was declared.
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Oil India Limited , a leading Indian oil and gas company, has released its financial results for the second quarter of fiscal year 2026, revealing a mixed performance amidst production challenges and significant exploration write-offs.
Financial Performance
Oil India reported standalone revenue of INR 5,456.00 crores for Q2 FY26, with a Profit After Tax (PAT) of INR 1,044.00 crores. The company's performance was impacted by several factors, including:
- A decline in crude oil production by 2.58% year-on-year to 0.85 million metric tons
- A significant drop in average crude oil realization, falling 18.11% to USD 68.19 per barrel
- Exploration write-offs totaling INR 723.00 crores for Andaman wells
Production Challenges
The company faced production disruptions due to ethnic group blockades in the Northeast region. Director of Operations, Mr. Trailukya Borgohain, explained:
"What happened is that there are a few ethnic groups here, six ethnic groups. And one of the ethnic groups in the Eastern part... because they want the SC Status... they did the economic block, not against Oil India, but it is to the government. But in the process, what happened is that we have to close down wells because people cannot move for work inside and outside the facilities, oil facilities."
Despite these challenges, the company is working to normalize operations and has brought production back to around 9,600 metric tons per day from a low of 8,100 metric tons per day during the disruptions.
Exploration and Development
Oil India continues to focus on strengthening its resource base through acreage expansion and focused exploration in new prospective areas. Notable developments include:
- Drilling of 18 new wells in Q2 FY26, achieving 100% of the target
- A key milestone in the offshore exploration campaign in the Andaman Basin, with gas occurrence in East Andaman
- Ongoing appraisal and development activities in the Andaman region
Outlook and Future Plans
The company has revised its production outlook for the coming years:
| Fiscal Year | Oil Production (million metric tons) | Gas Production (bcm) |
|---|---|---|
| FY26 | 3.55 (revised from 3.78) | 3.60 |
| FY27 | 3.75 | 3.80 |
| FY28 | 3.98-4.00 | 4.60 |
Oil India is also progressing with its pipeline expansion projects, including the mechanical completion of the Numaligarh Siliguri pipeline on October 12, 2025.
Dividend Announcement
The Board of Directors has declared an interim dividend of INR 3.50 per share for Q2 FY26.
As Oil India navigates through production challenges and continues its exploration efforts, the company remains focused on operational stability and long-term value creation across its portfolio.
Historical Stock Returns for Oil India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.56% | -2.70% | +4.54% | -0.34% | -12.55% | +581.50% |
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