Oil India Limited , a Maharatna CPSE under the Government of India, has been fined Rs 10.85 lakh by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for failing to comply with board composition regulations. The penalty highlights the challenges faced by state-owned enterprises in balancing government control and regulatory requirements.

Non-Compliance Details

• Fine Amount: Rs 5,42,800 each from NSE and BSE
• Violation: Non-appointment of requisite number of Independent Directors
• Regulatory Provision: Regulation 17(1) of SEBI (LODR) Regulations, 2015

Company's Response

Oil India Limited attributed the non-compliance to its status as a Government of India enterprise. The company stated that the appointment of directors on its board falls under the purview of the Administrative Ministry (Ministry of Petroleum & Natural Gas). In response to the violation:

• The company has requested the Ministry to appoint the required number of Independent Directors.
• Oil India emphasized that the non-compliance was beyond the company's control.

Financial Context

Despite the regulatory hiccup, Oil India Limited's financial position remains robust. The company's latest balance sheet data shows:

The company's strong asset growth and stable shareholder's capital suggest that the regulatory fine is unlikely to have a significant impact on its financial health.

Implications and Outlook

This incident underscores the unique challenges faced by public sector undertakings in India:

1. Governance Balancing Act: PSUs must navigate between government control and regulatory compliance.
2. Transparency Concerns: The lack of independent directors may raise questions about corporate governance practices.
3. Regulatory Pressure: Increased scrutiny on board composition across all listed entities, including state-owned companies.

As Oil India Limited works with the Ministry to resolve this issue, investors and market watchers will be keen to see how quickly the company can align its board composition with SEBI regulations. The resolution of this matter will be crucial for maintaining investor confidence and ensuring robust corporate governance practices in the public sector.

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:

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.