Oil India Q4 FY26 profit jumps 62% to Rs 2,424 crore

State-owned Oil India Limited (OIL) reported a strong rise in profitability for the March quarter, supported by higher crude oil output and improved price realisations. The company said consolidated profit after tax (PAT) for Q4 FY26 increased 62% year-on-year to Rs 2,424 crore, compared with Rs 1,497 crore in the same quarter last year. Alongside the headline earnings growth, OIL highlighted operational milestones, including its highest daily crude production in a decade and a record number of wells drilled during FY26.

The results also put the spotlight on OIL’s downstream subsidiary, Numaligarh Refinery Limited (NRL), which posted a sharp improvement in annual profitability and reported a healthy refining margin.

Q4 FY26: Profit growth driven by output and pricing

OIL attributed the quarter’s profit rise to a combination of higher crude production and better realisations. Crude oil production in Q4 FY26 increased 6% versus the year-ago period, according to the company’s statement. Average crude oil price realisation for the quarter came in at USD 77.89 per barrel, compared with USD 74.46 per barrel in Q4 FY25.

The company said crude oil production from its mature fields rose to 0.891 million tonnes in the March quarter, up from 0.844 million tonnes a year earlier. That improvement in volumes, alongside a higher realised price, provided the key support to the quarter’s earnings expansion.

Full-year FY26: Consolidated profit rises to Rs 7,551 crore

For the full year, OIL reported consolidated PAT of Rs 7,551 crore in FY26, up from Rs 7,040 crore in FY25. While the year-on-year increase was comparatively modest versus the March quarter jump, the company positioned FY26 as a year of stepped-up operating execution.

The FY26 performance was accompanied by several operational claims, including record drilling and workover activity and an improvement in reserve replacement.

Dividend update: Final dividend of Rs 1 per share

OIL’s board recommended a final dividend of Rs 1 per share. This is in addition to interim dividends totalling Rs 10.5 per share that were already paid during the fiscal year.

For income-focused investors, the announcement clarifies that the company chose to supplement interim payouts with a modest final dividend, while still reporting higher consolidated profits for both the quarter and the year.

Production milestone: Highest daily crude output in a decade

OIL reported its highest daily crude oil production in the last decade at 10,566 tonnes. The company flagged the milestone as a result of an “aggressive drilling and workover campaign,” linking operational intensity to higher short-term output and longer-term reserve maintenance.

The company did not provide a quarterly average daily production figure, but the stated peak daily output offers a snapshot of operational capacity during FY26.

Record drilling and workovers: 74 wells and 307 jobs

During FY26, OIL drilled a record 74 wells, which it described as the highest-ever achievement. The company also completed a record 307 workover jobs during the year, again described as a best-ever annual figure.

These metrics matter because drilling adds new producing opportunities, while workovers can improve output from existing wells or restore production from underperforming assets. In mature fields, consistent workover execution can play a meaningful role in maintaining production trajectories.

Reserve Replacement Ratio exceeded 1

OIL said it achieved a Reserve Replacement Ratio (RRR) exceeding 1 during the year, driven by the drilling and workover campaign. An RRR above 1 indicates the company added more reserves than it produced over the period, which is an important indicator of upstream sustainability.

The company did not disclose the exact RRR number in the statement, but the “exceeding 1” marker is a notable operational datapoint for investors tracking long-term resource replacement.

Numaligarh Refinery: FY26 profit jumps 90% to Rs 3,057 crore

OIL’s subsidiary NRL reported a 90% rise in FY26 profit to Rs 3,057 crore. NRL also posted gross refining margins (GRM) of USD 13.43 per barrel, according to the company’s statement.

The NRL numbers are significant because refining profitability can diversify consolidated earnings across commodity cycles. A strong GRM typically reflects favourable product cracks, feedstock dynamics, and operational performance, although the statement did not provide year-on-year GRM comparison.

Key numbers at a glance

Why the FY26 execution metrics matter

OIL’s Q4 earnings growth is closely tied to two measurable drivers: higher crude output and higher realised prices. But the company’s communication also focused heavily on activity indicators like drilling and workovers, which often act as leading indicators for production stability.

For upstream companies operating mature assets, the combination of higher near-term output and an RRR above 1 can be a meaningful signal for reserve health. Meanwhile, NRL’s higher profit and reported GRM underscore the role of refining in balancing consolidated performance.

What to watch next

Investors will track how consistently OIL can sustain higher production from mature fields and whether record drilling and workover levels translate into stable volumes beyond FY26. Dividend follow-through will also be monitored, given the mix of interim dividends already paid and the final dividend recommendation.

Separately, NRL’s profitability and refining margin trends will remain relevant for OIL’s consolidated earnings profile, especially as crude prices and product cracks fluctuate.