Oil India Share Price Declines After Q3 Profit Slips By A Third

Oil India Ltd. saw its share price decline by 4.52% in early trade on Monday after the company reported a significant drop in its net profit for the third quarter of the financial year 2024-25. The state-run oil exploration and production company posted a standalone net profit of Rs 1,222 crore for the quarter ended Dec. 31, 2024, marking a 33.4% decrease from Rs 1,834 crore in the preceding quarter.

Oil India’s revenue during the December quarter fell by 5.1% on a sequential basis to Rs 5,239.6 crore, primarily due to an 8% decline in its crude oil segment sales. Its crude realisation dropped 7% quarter on quarter to $73.8 per barrel, while its gas realisation decreased 2% sequentially to $6.8 per million metric British thermal unit.

On the profitability front, Ebitda was down 2.3% to Rs 2,132.7 crore from Rs 2,183.3 crore, Ebitda margin was at 40.7%, compared to 41.61% in the previous quarter.

The oil and gas explorer is targeting to produce 3.5 million metric tonnes of crude per annum in the current fiscal. It has also set crude production targets of 3.6 MMTPA and 4 MMTPA in FY26 and FY27, respectively.

In terms of gas production the company's target for FY25, FY26 and FY27 stand at 3.3, 4 and 5 billion cubic meter, respectively.

The scrip fell as much as 4.52% to Rs 405.60 apiece. It pared losses to trade 3.17% lower at Rs 411.35 apiece, as of 10:00 a.m. This compares to a 0.48% decline in the NSE Nifty 50 Index.

It has risen 31.59% in the last 12 months. Total traded volume so far in the day stood at 1.7 times its 30-day average. The relative strength index was at 42.

Out of 19 analysts tracking the company, 15 maintain a 'buy' rating, two recommend a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 46.1%.