The shares of the prominent crude oil manufacturer gained up to 1 percent after the company inked a Memorandum of Understanding (MoU) for exploration and development of critical mineral blocks in India and overseas
Price Movement
With a market capitalization of Rs 62,307.21 crore, the shares of Oil India Ltd were trading at Rs 383.05 per share, decreasing around 2.32 percent as compared to the previous closing price of Rs 392.15 apiece.
Reason for Rise
According to the company filing, Oil India Ltd signed a Memorandum of Understanding (MoU) with Mineral Exploration and Consultancy Limited (MECL) to collaborate in the exploration and development of critical mineral blocks in India and overseas.
Moreover, this strategic partnership marks a significant milestone in fostering the exploration of critical minerals both in India and overseas, recognizing their vital importance for the nation’s energy security and sustainable growth.
Financial Analysis
Recently, Oil India Ltd announced financial performance in which revenue plummeted by 13 percent on a yearly basis from Rs 9,614 crore in Q3FY24 to Rs 8,337 crore in Q3FY25, however, on a Quarterly basis revenue zoomed by 15 percent from Rs 7,247 crore in Q2FY25 to Rs 8,337 crore in Q3Y25.
Moreover, net profit slipped drastically by 44 percent on a yearly basis from Rs 2,608 crore in Q2FY24 to Rs 1,457 crore in Q2FY25, meanwhile on a quarter-on-quarter basis net profit decreased by 29 percent from Rs 2,069 crore in Q1FY25 to Rs 1,457 crore in Q2FY25.
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Future Guidance
The company targets 3.2–3.3 BCM of natural gas and 3.56 million tons of crude oil production for FY’25, aiming for 4 million tons of oil and 5 BCM of gas annually in the coming years as part of its long-term vision.
The company anticipates higher production with the IGGL pipeline enhancing gas evacuation. DNPL pipeline phases, completing by March ’25 and March ’26, will support growing gas demand from Numaligarh Refinery, reinforcing future growth and operational efficiency.
Capex allocation
The company plans a total capex of Rs.6,000-7,000 crores over three years, with 75 percent allocated to upstream initiatives. Key investments focus on drilling and development across Assam, Rajasthan, and offshore Andaman, supporting ongoing projects to enhance production and operational efficiency.
Refinery’s expansion
Numaligarh Refinery’s expansion, now estimated at Rs. 32,000 crores, aims to increase capacity from 3 to 9 million tons. With Rs.11,500 crores in debt on its balance sheet, NRL focuses on product evacuation through pipeline augmentation to support the enhanced output.
Company snapshot
Oil India Limited is an integrated upstream exploration and production firm established in India that produces crude oil and natural gas. Crude Oil, Natural Gas, LPG, Pipeline Transportation, Renewable Energy and Others are among the company’s business segments.
Written by:- Abhishek Singh
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