Oil India Ltd., India's second-largest state-owned oil and gas exploration and production company, reported a 60% jump in first-quarter profit, driven by higher revenue and improved margins during the June quarter.

The state-run explorer, headquartered in Duliajan, Assam, said stronger production volumes and enhanced profitability were the primary catalysts behind the earnings growth. Oil India operates under the administrative control of India's Ministry of Petroleum and Natural Gas. The company's performance reflects the broader operating environment for upstream producers during the quarter, where relatively firm crude oil prices have supported realizations for domestic explorers.

In addition to the parent company's robust performance, Oil India's subsidiary Numaligarh Refinery Ltd. (NRL) also posted a sharp increase in profit for the quarter. NRL, which operates a refinery in Golaghat district of Assam, is a key downstream asset in Oil India's portfolio. The refinery has been expanding its processing capacity, including a project to scale up to 8 million metric tonnes per annum, positioning it to serve growing fuel demand in the northeastern region and beyond.

The results underscore a strong start to fiscal year 2026 for the Maharatna-category public sector undertaking, which has been working to boost domestic crude oil and natural gas output to support India's energy security goals. India imports more than 80% of its crude oil requirements, making increased domestic production a strategic priority for the government and a key driver for state-run explorers like Oil India, which along with Oil and Natural Gas Corporation Ltd. (ONGC), accounts for the bulk of the country's domestic crude output.

Source: CNBC-TV18