Oil India Limited Q2 profit rises 116% on output, prices

Oil India Limited reported standalone profit after tax (PAT) of Rs 2,259 crore in the second quarter of financial year 2026-27 (Q2 FY27), up 116% from Rs 1,044 crore in Q2 FY26, after crude production rose 20% to 1.021 million metric tonnes (MMT) and realised crude price increased 35% to US$92.24 per barrel.

Why did OIL's standalone Q2 profit rise 116%?

OIL's standalone PAT rose 116% in Q2 FY27 because crude production increased 20% and crude-price realisation increased 35% year on year. PAT reached Rs 2,259 crore, compared with Rs 1,044 crore in Q2 FY26, while realised crude price rose from US$68.19 per barrel to US$92.24 per barrel.

The reported production increase came from OIL's matured and old oilfields. These fields produced 1.021 MMT of crude oil in Q2 FY27, compared with 0.848 MMT in Q2 FY26, linking higher physical volumes with the quarter's profit increase.

OIL also reported its highest daily crude production in the last decade during the quarter. Production reached 11,300 metric tonnes, or 87,051 barrels, on September 29, 2026, within the Q2 FY27 period in which output totalled 1.021 MMT.

How did OIL perform in the first half of FY27?

OIL reported its highest-ever standalone PAT for the half year ended September 30, 2026, at Rs 5,130 crore, up 176% from Rs 1,857 crore in the corresponding previous half year. The first-half result followed standalone PAT of Rs 2,259 crore in Q2 FY27.

At the consolidated level, which includes subsidiaries, OIL reported PAT of Rs 2,521 crore in Q2 FY27, compared with Rs 1,644 crore in Q2 FY26, a 53% increase. Consolidated PAT for the half year ended September 30, 2026 was Rs 6,548 crore, versus Rs 3,690 crore in the corresponding previous half year, representing 77% growth.

The difference between consolidated and standalone PAT was Rs 262 crore in Q2 FY27. For the half year ended September 30, 2026, consolidated PAT exceeded standalone PAT by Rs 1,418 crore, while the release separately reported refining performance at material subsidiary Numaligarh Refinery Limited (NRL).

What operational milestones did OIL report?

OIL reported 42 wells drilled in the first half of FY 2026-27, its highest-ever half-year drilling performance. The company described the 42-well result as a new operational benchmark alongside Q2 FY27 crude production of 1.021 MMT from mature and old fields.

The release does not give an annual drilling target, production target, reserve estimate or capital-expenditure figure. It reports the 42 wells as completed during the first half and the September 29, 2026 daily crude-production record of 11,300 metric tonnes.

OIL is a Maharatna central public sector enterprise (CPSE) under the Government of India, according to the release. Its board declared the Q2 FY27 results at its 586th meeting in New Delhi on November 12, 2026.

How did NRL's refinery performance change?

NRL increased crude throughput to 803 thousand metric tonnes (TMT) in Q2 FY27 from 753 TMT in Q2 FY26. For H1 FY 2026-27, throughput reached 1,594 TMT, compared with 1,552 TMT in H1 FY 2025-26.

NRL's capacity utilisation was 106.26% in H1 FY 2026-27, compared with 103.48% in the corresponding prior-year period. Its distillate yield rose to 87.15% from 86.64% over the same comparison, according to OIL.

The refinery's gross refining margin (GRM) was US$28.24 per barrel for the half year ended September 30, 2026, compared with US$7.73 per barrel for the half year ended September 30, 2025. OIL reported this as a 265% increase and attributed the refining performance to operational efficiency and refinery management.

The higher refinery measures coincided with consolidated PAT of Rs 6,548 crore for the half year ended September 30, 2026. OIL identifies NRL as a material subsidiary, but the release does not quantify NRL's separate contribution to consolidated PAT.

What interim dividend did OIL recommend for FY27?

OIL's board recommended an interim dividend of Rs 7.00 per fully paid equity share with a face value of Rs 10 each. The recommendation was disclosed with the Q2 FY27 results declared on November 12, 2026.

The release does not state a record date, payment date, aggregate dividend outgo or number of eligible shares. It therefore presents Rs 7.00 per share as a board recommendation without the implementation timetable.

Conclusion

OIL's Q2 FY27 performance combined a 20% increase in crude production with a 35% increase in crude-price realisation, lifting standalone PAT 116% to Rs 2,259 crore. The half-year figures extended that change, with record standalone PAT of Rs 5,130 crore, consolidated PAT of Rs 6,548 crore and NRL's GRM rising to US$28.24 per barrel.

The next disclosed matter to watch is the timetable for the recommended Rs 7.00-per-share interim dividend, because the November 12, 2026 release does not provide a record date or payment date. OIL also reported 42 wells drilled in H1 FY 2026-27 and NRL throughput of 1,594 TMT, creating reported operating benchmarks for subsequent disclosures.