Oil India Ltd Q2 FY27 Earnings Call: Record H1 EBITDA at 48.58% Margin, Crude Output Up 20% YoY

Record Half-Year Earnings, Backed by Realizations and Volumes

• Standalone H1 FY 2026-2027 operating revenue of Rs.16,029 crore — with highest-ever half-yearly EBITDA of Rs.8,450 crore at a 48.58% margin, versus 34.32% in the previous half year.
• Standalone H1 PAT of Rs.1,530 crore — described as the company's highest ever; EPS for H1 FY 2026-2027 was Rs.31.54 per share. Standalone PBT was quoted as "Rs.6,609" without a unit as spoken.
• Consolidated H1 FY 2026-2027 revenue of Rs.24,801 crore — consolidated PAT of Rs.6,447 crore.
• Crude realizations of $95.38/bbl in Q2 FY 2026-2027 — versus $67.22/bbl in the previous year; gas realization of $7.19/MMBTU versus $6.75/MMBTU in Q2 FY 2025-2026.
• First interim dividend of Rs.7 per equity share — approved by the board alongside results published on 12 November 2026, covering 1 July to 30 September 2026.
• Dividend income of Rs.894 crore in H1 FY 2026-2027 — versus Rs.610 crore in H1 FY 2025-2026 (foreign subsidiary Rs.466 crore, NRL Rs.336 crore, IOCL Rs.91 crore).

Crude Output Up 20% YoY; Gas Growth Constrained

• Combined oil and gas production of 1.807 MMt in Q2 FY 2026-2027 — crude output of 1.021 MMt, up 20% YoY; gas production of 0.786 BCM.
• Peak oil output of 11,347 metric tons per day — reached after 30 September in Q2 FY 2026-2027, hovering around 11,000–11,200 t/day; run-rate of about 4.05 MMTPA.
• About 4 million tons ("plus minus") expected by 31 March 2027 (FY 2026-2027) — per Director Operations Trilok Bogohein, with internal targets slightly higher; he said the company "should not" stop at 4 million tons and expects 4.2–4.3 million tons thereafter, with no specific year given.
• Gas output in FY 2026-2027 expected only slightly above the prior year — constrained by gas connectivity; a fertilizer customer took a shutdown, and connection efforts are targeted "by another 18 months or 20 months."
• 42 new wells drilled in H1 FY 2026-2027 — 16 exploratory and 26 development; internal target of 100 wells for FY 2026-2027 with 29 rigs operating, versus 74 wells in FY 2025-2026.
• Fire at the ITF tank farm has had limited impact — the ITF handles about 1,000 kilolitres/day and a bypass to nearby OCS is in use; some production held back at wellheads to be compensated later, with "maybe 2, 3 days" of issues expected.

Vijayapuram Write-Offs Weigh; Discovery Pipeline Builds

• Q2 FY 2026-2027 well write-offs of Rs.1,480 crore — driven by the Vijayapuram well, the first offshore well of the current drilling campaign; first well carried about Rs.1,400 crore of mobilization and bundled service costs, second well Rs.950 crore, with costs expected to come down on subsequent wells.
• Incremental Rs.280 crore in well provisions vs prior year — mainly the Rs.1,408 crore Bijapuram 1 provision; prior-year provisions included Gabon and Bangladesh, with no overseas well provision in FY 2026-2027. Breakdown cited (Western satellite Rs.168 Cr, central fields Rs.65 Cr, Chanmari Rs.44 Cr, Ashok Nagar JV ~Rs.20 Cr) sums to ~Rs.297 crore, not Rs.280 crore.
• Andaman: two of three drilled wells written off — about Rs.1,400 crore for the first and about Rs.950 crore for the second; the third (Rs.850-900 crore if written off) is retained for possible re-entry, subject to studies of 600 sq km of 3D data being acquired. Fourth well to be drilled by December 2026 and completed within FY 2026-2027.
• KG DSF gas discovery in a previously unexplored zone — a second zone is producing oil; a detailed press release is due in "a couple of days," and the field development plan is to be reviewed. A KGDSF discovery will be reported shortly, per Director Finance Abhijit Majumdar.
• Kerala-Konkan well at 6,250 meters in 60 meters water depth — five objects being tested sequentially; a second well planned to about 6,500 meters (period unspecified).
• Exploratory success rate of 82% and development success rate of 100% (period unspecified) — wells are getting deeper (5,500–6,000 meters, moving to 6,500 meters), adding technical complexity in a tectonically active region.

Strong H1 GRM, But Q2 Spreads Compressed Sharply

• NRL Q2 FY 2026-2027 operating revenue of Rs.7,991 crore, up 24% YoY — capacity utilization of 107.02%; Q2 EBITDA of Rs.1,108 crore versus Rs.988 crore in Q2 FY 2025-2026.
• GRM fell to $20.71/bbl in Q2 from $35.95/bbl in Q1 FY 2026-2027 — H1 GRM of $28.24/bbl versus $7.73/bbl in the previous half year; NRL Director Finance Sachidananda Maharana attributed the QoQ decline to lower FOB product prices (MS $129→$110/bbl, HSD $175→$138/bbl) while crude fell only $100→$92/bbl, with SAED largely unchanged.
• Q2 FY 2026-2027 inventory gain of $5.78/bbl — per Maharana; crude procurement cost was unchanged QoQ.
• NRL production of 810 TMT in Q2 FY 2026-2027 — including 542 TMT HSD and 193 TMT MS; H1 distillate yield of 87.15%.
• NRL H1 FY 2026-2027 PAT of Rs.1,305 crore — versus Rs.1,213 crore in the previous year. Q2 PAT was stated as "701" versus "7, 724" in Q2 FY 2025-2026, as spoken.

Expansion Projects at 95%; Capex Stepping Up

• PNCPL crude pipeline 95% complete — 1,600 of 1,640 km done; earlier commissioning guidance of December FY 2026-2027 flagged as a likely spillover, with mechanical completion targeted by March FY 2026-2027 and completion in Q4 FY 2026-2027.
• NRAP project targeted for completion by March 2027 (FY 2026-2027) — NSPL pipeline "almost complete," tied to the refinery expansion; the existing 3 MMT refinery needs no shutdown during commissioning of the additional 6 MMT capacity.
• IGGL-DNPL interconnection being executed by NRL and IGGL, not Oil India directly — physical interconnection due by end of November 2026, followed by statutory approvals from PESO, OIMD and PNGRB authorisation; gas flow expected by January end (FY 2026-2027).
• Capex of Rs.6,000 crore as of 30 September 2026 — expected to rise to about Rs.13,500–14,000 crore for FY 2026-2027; NRL capex target of Rs.7,500 crore for FY 2026-2027 is on track, with FY 2027-2028 expected close to Rs.6,000 crore.
• NRL debt drawdown close to Rs.20,500 crore — against a total tie-up of "20-28,000 crores" as spoken; no net debt figure was given.
• A 160-168 km Oil India pipeline under construction — approved by the company, taking 18 months from construction start (period unspecified); Madhuban gas processing plant has 5 MMSCM maximum capacity with 3.5 MMSCM average planned throughput (period unspecified).

Ramp-Up Path Set, But Cost and Execution Risks Flagged

• NRL expansion to reach 50-60% of additional capacity by Q3 FY 2027-2028 — and 100% of additional capacity in FY 2028-2029; a one-month turnaround of the existing 3 MMT refinery is scheduled for October 2027 (FY 2027-2028), recurring every four years.
• About 100-110 wells per year described as business as usual going forward — with 5-6 more rigs in the pipeline beyond the current 29; wells drilled in FY 2025-2026 were 74 versus about 38-45 previously.
• Average field decline of 12-15% cited by the company — with production about 20% higher than that decline would imply (period unspecified); Director Finance Abhijit Majumdar said higher volumes will bring higher capex and higher cost of production.
• Vijayapuram 3 decision (re-enter/sidetrack, deepen, or write off) expected by January (FY 2026-2027) — based on interpretation of about 600 sq km of additional 3D seismic acquired outside the committed work program; a couple of appraisal wells planned around Vijayapuram 2 and 3.
• Cambay Basin discovery notified — high pour point oil at shallow depth with faster monetization procedures being deployed; expected to add modestly to the asset base (period unspecified).
• Majumdar asked investors to "hold their patience" — citing year-on-year higher growth, more wells drilled and discoveries; overseas investment is not significant given the Mozambique update.