Oil India Posts 10% Jump in FY25 Profit on Record Oil & Gas Production

Oil India Limited (OIL), the Government of India’s Maharatna CPSE, has reported a strong 10.13% year-on-year growth in profit after tax (PAT), backed by the company's highest-ever oil and gas production in the financial year 2024–25 (FY25).

The announcement came during the 568th meeting of OIL’s Board of Directors, held on May 21, 2025, where the company also declared a final dividend of ₹1.50 per equity share. This is in addition to a 100% interim dividend paid earlier during the year.

Strong Financial Performance Despite Headwinds

OIL’s PAT for FY25 stood at ₹6,114.19 crore, up from ₹5,551.85 crore in FY24. The company’s Earnings Per Share (EPS) also rose to ₹37.59, from ₹34.13 in the previous year, reflecting healthy shareholder returns.

However, total income for FY25 slightly dipped to ₹23,987.07 crore from ₹24,514.28 crore in FY24, and turnover held steady at ₹22,117.22 crore compared to ₹22,129.79 crore in the previous year. EBITDA margins compressed to 44.34% from 47.50%, largely due to a drop in crude oil price realization, which averaged $78.09 per barrel, down from $83.03 a year ago.

Record-Breaking Production Figures

OIL registered its highest-ever combined crude oil and natural gas production in FY25 at 6.71 million metric tonnes of oil equivalent (MMTOE). Crude oil production rose 2.95% to 3.458 million metric tonnes (MMT), while natural gas output increased 2.20% to 3.252 billion cubic metres (BCM) — both marking historic highs for the company since its inception.

Sales and Capital Expenditure Surge

The company also reported a notable surge in capital expenditure (CAPEX), which more than doubled by 123.07% to reach ₹8,467.33 crore in FY25. This reflects OIL’s aggressive push in exploration and production to reinforce India’s energy security.

Crude oil sales for the year stood at 3.346 MMT, while natural gas sales rose to 2.579 BCM, up from 2.434 BCM in FY24.

Q4 Snapshot: A Mixed Quarter

In the fourth quarter (Q4 FY25), OIL posted a net profit of ₹1,591.48 crore, compared to ₹2,028.83 crore in Q4 FY24. Revenue from operations dropped slightly to ₹5,518.94 crore from ₹5,756.73 crore in the same quarter last year.

Despite these challenges, the company maintained robust production volumes, with total oil and gas output touching 1.65 MMTOE during the quarter.

OIL’s sustained growth in production from ageing fields and its aggressive CAPEX strategy signal continued resilience and focus on energy self-reliance. While softer crude prices impacted profit margins, the company’s strong fundamentals, dividend record, and investment pipeline reflect long-term confidence.