Oil India Q4 results: Profit drops 39% to ₹1,310 cr on lower crude prices

Downturn in oil, refined product revenue knocks earnings; board clears interim payout

In the fourth quarter (January–March) of 2024–25 (FY25), state-owned Oil India (OIL) reported a 39 per cent drop in consolidated net profit due to lower global oil prices. Attributable to the owners of the company, net profit fell to ₹1,310 crore, down from ₹2,140 crore in the corresponding period of 2023–24 (FY24). Sequentially, net profit declined 2.14 per cent from ₹1,338.85 crore recorded in the previous quarter.

 

The national oil exploration and production company’s revenue from operations in the latest quarter dropped 5.68 per cent to ₹9,587.82 crore, from ₹10,165.78 crore in Q4FY24. While Brent crude oil prices had spiked to a high of $82 per barrel for a few days in early January, they remained below $75 per barrel for the second half of the quarter. In comparison, crude prices had been on an upward trend from $80 to $87 per barrel in Q4FY24.

 

 

The latest revenue drop is primarily due to lower earnings across all major segments. Specifically, revenue from petroleum products dipped 7.2 per cent to ₹6,927.3 crore, down from ₹7,465.7 crore in Q4FY24. Similarly, the crude oil portfolio registered a 6.6 per cent decline in revenue to ₹3,896 crore, while the natural gas portfolio saw a 3.6 per cent decrease to ₹1,382 crore. 

 

Meanwhile, total expenses fell by a narrower margin of 2.7 per cent, to ₹7,505 crore. The company also reported a loss of ₹272 crore from associates and joint ventures.

 

During FY25, the company’s capital expenditure utilisation rose 123 per cent to ₹8,467.3 crore. Earlier this year, the finance ministry granted Maharatna status to OIL, making it the 13th such central public sector undertaking in the country. The Maharatna tag gives OIL the financial autonomy to invest up to ₹1,000 crore without seeking government clearance.

 

The company achieved its highest-ever combined oil and gas production of 6.71 million tonnes of oil equivalent during FY25. Crude oil production rose 2.95 per cent to 3.458 million tonnes, while natural gas output increased 2.2 per cent to 3.252 billion cubic metres — both the highest ever achieved by OIL since its inception.

 

The board also approved an interim dividend of ₹1.5 per share for FY25, to be paid within 30 days of its declaration at the company’s annual general meeting. This is in addition to the 100 per cent dividend paid earlier during the year by way of interim dividend. OIL’s shares rose 0.7 per cent in intraday trading, closing at ₹426.25 apiece on the BSE.