Oil India Limited

Energy — Oil & Gas Integrated · NSE

₹445.00−₹0.40 (−0.09%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by negative free cash flow.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:26 pm

Understanding the Business

Company site ↗

The 60-second version of Oil India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Oil India Limited engages in the exploration, development, and production of crude oil and natural gas in India. It operates through Crude Oil, Natural Gas, LPG, Pipeline Transportation, Renewable Energy, and Others segments.

IndustryOil & Gas Integrated

SectorEnergy

Employees6,593

Annual revenue₹33,943 Cr

How does it make money?

Turns over ₹33,943 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹49 left at the operating level before interest, tax and depreciation. Each of its 6,593 employees supports ₹5.15 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.15 Cr

Who are its competitors?

The closest listed comparisons in its industry are RELIANCE INDUSTRIES LTD, OIL AND NATURAL GAS CORP., BHARAT PETROLEUM CORP LT, INDIAN OIL CORP LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.3%

What is the outlook?

13 analysts covering the stock expect revenue to grow about 33.7% and earnings to grow about 7.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+33.7%

Est. earnings growth+7.4%

Analysts13

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -6% while net margin moved -19% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-6%

Margin effect-19%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.0% a year
✗ Profit has declined at 8.8% a year

Quality vs. Valuation

Company Quality

45/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

64/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

8.7x

3Y Median

10.8x

40 monthly readings · mean 9.9x · range 3.4x–19.0x

Sector Median

6.9x

median of 4 sector peers

🟢Current valuation is approximately 19% below its 3y median of 10.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 26% above the peer median of 6.9x.

vs. its own history

Fair

10.8x median over 40 months · -19%

vs. sector peers

Expensive

6.9x median of 4 peers · +26%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 46.2% to 48.8% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 22.7% to 11.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.4% to 10.0% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 99% over 3 years, from ₹18,832 Cr to ₹37,478 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 88% against revenue up -6% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 24% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 46.2% to 48.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 88% against revenue up -6%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 26% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 22.7% to 11.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 47%✓ 48.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹2,487 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✓ 10.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 10.8x✓ 8.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹72,384 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

8.7x

Cheap

Cheap against the generic band

P/B Ratio

1.25x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹51.36

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

10.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.59x

Low

Conservative leverage

Revenue Growth (YoY)

57.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

91.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.92%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹2,487 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

6.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

40.7%

Good

Healthy core-business profitability

Net Margin

21.7%

Good

Strong bottom-line conversion

Current Ratio

1.09

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

36%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

456.4 / 469.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹36,084 Cr	₹32,466 Cr	₹32,510 Cr	₹33,943 Cr	-2.0%
EBITDA	₹16,657 Cr	₹15,569 Cr	₹14,635 Cr	₹16,577 Cr	-0.2%
EBITDA Margin	46.2%	48.0%	45.0%	48.8%	—
PAT (Net Profit)	₹8,729 Cr	₹6,335 Cr	₹6,551 Cr	₹6,620 Cr	-8.8%
EPS	₹53.66	₹38.95	₹40.27	₹40.7	-8.8%
ROE	22.7%	13.1%	13.2%	11.4%	—
ROCE	21.4%	12.5%	11.7%	10.0%	—
Total Debt	₹18,832 Cr	₹24,041 Cr	₹30,645 Cr	₹37,478 Cr	+25.8%
Free Cash Flow	₹2,886 Cr	-₹1,130 Cr	-₹1,637 Cr	-₹2,487 Cr	—

🔴 Revenue has shrunk at 2.0% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-0.2% a year).

🟢 EBITDA Margin has risen from 46.2% to 48.8% over 3 years (+2.7 pts).

🔴 PAT (Net Profit) has shrunk at 8.8% a year over 3 years.

🔴 EPS has shrunk at 8.8% a year over 3 years.

🔴 ROE has fallen from 22.7% to 11.4% over 3 years (-11.3 pts).

🔴 ROCE has fallen from 21.4% to 10.0% over 3 years (-11.4 pts).

🔴 Total Debt has grown at 25.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2,886 Cr to -₹2,487 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.24 L Cr

Total Liabilities

₹60,046 Cr

Cash & Equivalents

₹1,323 Cr

Operating Cash Flow

₹10,684 Cr

Capex

-₹13,171 Cr

Shareholding (proxy)

Institutional Holding

21.1%

Insider Holding

67.7%

Corporate Actions

Next Earnings

12 Nov 2026

Dividend Rate

₹13

Ex-Dividend Date

04 Sept 2026

Analyst Consensus

Recommendations

14 Buy · 6 Hold · 1 Sell

Target Price (Mean)

₹534.14

+20.0% vs CMP

Target Range

₹360 – ₹645

Peer Comparison

Company	P/E	ROE
RELIANCE INDUSTRIES LTD	21.9x	8.3%
OIL AND NATURAL GAS CORP.	6.4x	11.7%
BHARAT PETROLEUM CORP LT	7.3x	17.1%
INDIAN OIL CORP LTD	5.3x	15.3%

Recent News

1 positive3 mixed2 general

Oil India signs RSC for special CBM block in Singrauli coalfield

scanx.trade, 18 Oct

Is Oil India the Best Stock in Its Sector? A Look at the Numbers

Univest, 12 Oct

Do Oil India's (NSE:OIL) Earnings Warrant Your Attention?

Simply Wall Street, 09 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Simplex Infrastructures Gets ₹255.52 Crore Oil India Contract; Shares Rise 2.85%

HDFC Sky, 05 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Oil India shares rally 7% as brokerages turn bullish after Q1 results

Business Standard, 11 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Oil India shares jump over 5%. What made Emkay upgrade the stock after Q1 results

The Economic Times, 11 AugAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health · Profitability · Risk

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑