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Oil India share price tanks 5% post Q1 results; check stock strategy here
At 12:05 PM, Oil India stock was trading 5 per cent lower at ₹403.55 per share compared to the previous day's close of ₹425.1 per share on the NSE. In comparison, NSE Nifty50 was up 0.3 per cent at 24,560 levels. The market capitalisation of the company stood at ₹65,999 crore. The stock has plunged 47 per cent from the 52-week high of ₹767.9 touched on August 30, 2024.
Oil India Q1 results
In the June 2025 quarter (Q1FY26), Oil India reported consolidated revenue from operations of ₹8,749.94 crore, down 6.4 per cent from ₹9,350.89 crore in the year-ago period. The company's earnings before interest, tax, depreciation, and amortisation (Ebitda) stood at ₹2,808.6 crore, down 12.7 per cent compared to ₹3,218.2 crore in Q1FY25. Net profit remained almost flat at ₹1,896.4 crore against ₹1,885.8 crore in the year-ago period.
Additionally, the company highlighted that during the quarter, it made a hydrocarbon discovery at the Namrup-Borhat OALP block and commenced gas production from the Bakhritibba Discovered Small Field (DSF) block located in Rajasthan's Jaisalmer District.
JM Financial on Oil India
According to analysts at JM Financial, Oil India's standalone Ebitda of ₹2064 crore was higher than their estimate of ₹1,950 crore (but lower than the consensus of ₹2,280 crore) on better gas sales volume and realisation, though it was partly offset by slightly lower crude sales volume and realisation.
JM Financial maintained a 'Buy' rating on the stock with a target price of ₹500 based on the Brent crude price assumption of USD 70 per barrel (while CMP is discounting USD 60 per barrel of net crude realisation).
However, the brokerage firm slashed its FY26 PAT estimate by 2.9 per cent, accounting for impairment loss of ₹3.1 billion in Q1FY26 in respect of two overseas blocks in Bangladesh.
The brokerage expects Oil India's earnings to grow at a robust 16 per cent compound annual growth rate (CAGR) over the next three to five years, driven by a sharp 20-30 per cent output growth in the next two to three years aided by commissioning of Indradhanush gas pipeline and expansion of NRL refinery from 3mmtpa to 9mmtpa. At CMP, Oil India trades at 6.3x FY27E EPS and 1.0x FY27E BV.
About Oil India
Oil India is a Maharatna company owned by the Government of India. It is a fully integrated energy company engaged in crude oil and natural gas exploration, production, and transportation, along with LPG (liquefied petroleum gas) production. The company is also involved in wind and solar energy projects. It mainly operates in Northeast India and Rajasthan. Oil India has overseas assets across seven countries, including Libya, Gabon, Nigeria, Mozambique, and Bangladesh, along with producing fields in Russia and Venezuela.
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