Oil India Ltd Q2 FY26 Earnings Analysis

- **Production Volume Growth:** - FY '25-26 targets: 3.70 MMT crude oil and 3.65 bcm natural gas. - FY '26-27 targets: 3.95 MMT crude oil and 4.31 bcm natural gas. - **Refinery Expansion:** - Numaligarh Refinery expansion to be commissioned in phased manner from Dec 2025. - Initial output expected at 40% capacity utilization in second half of FY '26-27, rising to ~80% by FY '27-28. - **Pipeline and Infrastructure:** - DNPL capacity enhancement from 1 to 2 bcm, enabling gas supply growth in the Northeast. - Feeder line to increase capacity beyond 7 bcm. - **Capex and Investments:** - FY '25-26 capex around INR 6,995 crores for upstream; INR 9,133 crores for NRL expansion. - FY '26-27 capex expected INR 7,300 crores for NRL. - **Excise Duty Impact:** - Recent excise duty increase by INR 2 per liter (benefiting INR 1/liter) expected to positively impact revenue (~INR 118 crores in Q1). - **Dividend and Subsidiary Contributions:** - Increased contributions from subsidiaries and foreign investments expected to support consolidated PAT growth.

- Production growth targets for FY26 and FY27: - Crude oil: 3.70 MMT (FY26), 3.95 MMT (FY27) - Natural gas: 3.65 BCM (FY26), 4.31 BCM (FY27) - Capex planned to support growth: ~INR 7,000 crores (FY26 standalone), INR 7,300 crores (NRL FY27) - Improvement expected as DNPL pipeline capacity enhances from 1 to 2 BCM, supporting gas output growth - Excise duty rate hike benefits profit by ~INR 118 crores in Q1 FY26 - Dividend inflows from Russian investments continue strong, contributing significantly to consolidated profit - Refinery expansion at Numaligarh to commission phased capacity from December 2025, ramping throughput and margins over next 2 years - Management expects overall resilient and disciplined performance with focus on production growth and long-term value creation - Earnings per share impacted currently by crude price decline but expected to stabilize with operational ramp-up and refinery expansion

- FY 2025-26 capex for Oil India standalone is approximately INR 6,995 crores. - FY 2025-26 capex for Numaligarh Refinery Limited (NRL) is around INR 9,133 crores focusing on refinery expansion and petrochemical units. - FY 2026-27 capex for Oil India standalone is approximately INR 7,585 crores. - FY 2026-27 capex for NRL is around INR 7,300 crores. - Upstream investments include drilling 15 wells in high-performing areas like Barekuri. - Planned investments in renewable energy: INR 25,000 crores earmarked for net zero target by 2040. - Renewable projects include around 25 compressed biogas (CBG) plants across India. - Solar energy projects of nearly 1.9 gigawatts planned in Assam (Northeast) and Rajasthan. - A 150-megawatt solar plant planned in Himachal Pradesh, targeted commissioning by March 2026. - Green hydrogen plant development in Himachal Pradesh (Baddi). - Bioethanol plant in Northeast to be commissioned by September 8, 2025.

- There is no explicit mention of any new fundraising through debt or equity in the provided transcript. - The company has disclosed planned capital expenditure (capex) for FY '26 and '27: - Standalone capex for FY '25-'26 is INR 6,995 crores (~INR 7,000 crores). - Standalone capex for FY '26-'27 is INR 7,585 crores. - Numaligarh Refinery Limited (NRL) has a capex target of around INR 9,133 crores for the current year. - The company discusses investment plans in various projects, including renewable energy, but no indication of raising funds through equity or new debt has been mentioned. - Most spending appears to be funded through internal accruals and existing resources. - Dividend receipts from foreign assets (Russia) continue to contribute to financial strength, indicating stable cash flow but no direct fundraising plans.

The transcript provided from the Oil India Limited Q1 FY '26 earnings call does not contain any specific details regarding the current or expected order book or pending orders. The discussion primarily focuses on operational and financial performance, production outlook, capital expenditure plans, project progress (such as refinery expansion and pipeline infrastructure), dividend from Russian investments, and excise duty impact. No direct mention or data about order book size, pending contracts, or new order intake is provided in the available pages.