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Prabhudas Lilladher Report
Oil India Ltd. reported an Ebitda of Rs 24.7 billion (up 5.6% QoQ, our estimate: Rs 25.2 billion). Profit after tax came in at Rs 14.7 billion (down 27.7% QoQ, our estimate: Rs 18.9 billion) on standalone basis. Decline in PAT was on account of lower other income. Total oil and gas production grew by 2.7% and 1.6% QoQ, respectively.
Oil India has guided for a production target of 4 million metric tonne of oil and 5 billion cubic metre of gas by FY26. On a conservative basis, we build in 8% and 16% volume CAGR over FY24-26 to 3.9 mmt of oil and 4.3 bcm of gas, respectively, by FY26.
Net oil realisation at ~$75/barrel of oil continues to remain at comfortable levels and gas realisation would rise by $0.25/metric million British thermal unit to $6.75/mmBtu from April 01, 2025.
We maintain ‘Buy’ rating, valuing the standalone business at 12 times FY26 adjusted earnings per share and adding the value of investment in Numaligarh Refinery Ltd. to arrive at our target price of Rs 766.
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Oil India Q1 Results: Profit Falls 14%, But Beats Estimates
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