Oil India's Q2 profit jumps 62% driven by crude realisation

Oil India Limited (NSE: OIL) reported Q2 FY27 consolidated net profit of ₹2,309 crore, up 61.6% year on year. Revenue from operations increased approximately 30% to ₹11,915 crore, while EBITDA rose 72% to ₹3,971 crore. What happened The upstream oil producer benefited from higher crude oil prices. Crude oil revenue increased 75% to ₹6,146 crore compared with ₹3,512 crore in the year-ago quarter. EBITDA margin expanded to 33.32% from 25.10%, an improvement of 822 basis points. The board also declared an interim dividend of ₹7 per share, with 20 November 2026 as the record date. Why it matters The result demonstrates the earnings sensitivity of upstream producers to crude realisations. Higher oil prices can improve revenue and operating leverage without requiring a comparable increase in production. However, this is also the key risk. A meaningful portion of the profit improvement is linked to elevated crude prices rather than a structural change in the business. If crude prices correct, realisations and margins could moderate. What to watch next Track crude realisations, production volumes and EBITDA per barrel in the next quarter. The sustainability of margins above 30% will depend heavily on the crude-price environment. Stance: Positive on the reported quarter, but cautious about extrapolating the 62% profit growth. The earnings outlook remains sensitive to crude prices.