Oil India Limited — Investor Meet, 12-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:**

In Q3 FY 2024-25, Oil India Limited reported a 1.4% increase in crude oil production to 0.868 million metric tons (MMT) compared to 0.856 MMT in the same quarter last year, with a 4.1% rise in production for the nine-month period ending December 2024 at 2.614 MMT. Natural gas production for the quarter was slightly higher at 0.829 billion cubic meters (BCM), leading to a cumulative increase of 2.9% over nine months, totaling 2.446 BCM. However, average crude oil prices fell 12.27% to $73.82 per barrel, impacting overall revenues. The turnover for the nine months reached ₹16,598.28 crores, a slight 1.38% increase, while profit after tax decreased to ₹1,221.80 crores for the quarter but showed a robust increase of 28.38% year-to-date, totaling ₹4,522.71 crores.

**Future Outlook and Growth Drivers:**

Management highlighted plans to reach 4 MMT crude oil production by FY 2026-27, driven by exploration initiatives and strategic drilling in new areas, particularly Barekuri and Sesabil. They anticipate gradual production increases, leveraging discoveries in the Brahmaputra region.

**Order Book and Operational Updates:**

The expansion at Numaligarh Refinery is progressing, currently over 70% complete, with expected commissioning by December 2025. Additionally, the DNPL pipeline is being augmented to meet increased gas demand following refinery expansion.

**Analyst Q&A Insights:**

Analysts sought clarity on revenue and profitability projections, particularly concerning declining gross refining margins (GRM), currently approximately $3.61 per barrel, significantly down from $13.12 per barrel last year, attributed to broader market trends. Concerns regarding other income were discussed, particularly due to reduced dividends from subsidiaries. Capex plans remain aggressive with ₹23,000 crores spent, and a focus on exploration, particularly in newly acquired acreage.

**Market or Regulatory Updates:**

The pipeline linking Numaligarh with the Duliajan facility awaits PNGRB authorization, with a completion target set at 18 months post-approval. Management reiterated the strategic importance of expanding the gas grid and increasing production capacity.

**Strategic Focus Areas:**

The conference emphasized ongoing innovation efforts and commitment to improving production efficiency in response to operational challenges, particularly related to declining field outputs.

**Investor Insight:**

Given the company's improved profitability trends for the year-to-date, coupled with proactive steps towards increasing production and operational efficiency, the current financial health and strategic direction suggest a favorable long-term outlook, possibly justifying a ‘buy’ stance.