Oil India Targets 7.5 MMT Output in FY26, Boosts Refinery and Gas Expansion Plans

Oil India, a central public sector undertaking, is gearing up for a strong 2025-26 (FY26), with plans to produce 7.5 million metric tonne (MMT) of oil and oil equivalent. Chairman and Managing Director Ranjit Rath said the company is focusing on increased drilling and exploration. “We are looking at a much higher number of drilling… and higher exploration, average and seismic data coverage,” he told CNBC TV18.

This comes on the back of a landmark 2024-25 (FY25), where the company achieved record output of 6.71 MMT, its highest-ever production.

Refinery Expansion and Petrochemical Plans

The Numaligarh Refinery expansion is progressing as scheduled, with commissioning of the primary units expected by December 2025. Capacity utilisation is targeted to reach 40–50% by FY27.

Additionally, Oil India has committed ₹7,000 crore for setting up a polypropylene unit to strengthen its petrochemicals portfolio. This project is expected to be completed by 2028-29 (FY29), adding long-term value to the company’s operations.

Gas Infrastructure and Evacuation Capacity

On the natural gas front, Oil India plans to expand its evacuation capacity from 8 to 13 million standard cubic metre per day (mmscmd). The connection to the North East Gas Grid will enable supply of 5–6 mmscmd, which will also support refinery operations.

Managing Costs and GST Impact

The recent GST hike on exploration services, estimated to add ₹300–400 crore, is considered manageable by the company and is not expected to derail investment plans. Rath also shared that Oil India is pursuing cost optimisation through improved drilling efficiency and faster turnaround times.

On crude prices, Rath noted that the company is working with an outlook of around $65 per barrel, with stable supply but subdued demand conditions.

Oil India Share Price Performance

On September 19, 2025, Oil India share price opened at ₹401.90, compared to the previous close of ₹399.15. During the session, the stock touched a high of ₹405.00 and a low of ₹399.40 before closing at ₹404.60, up by 1.37% at the end of the trading day.

The stock recorded a traded volume of 23.02 lakh shares and a traded value of ₹92.81 crore on the NSE. The market capitalisation stood at ₹65,812.55 crore. Over the past 52 weeks, Oil India has hit a high of ₹627.00 and a low of ₹325.00. The stock is currently trading at a P/E ratio of 9.95.

Conclusion

Oil India’s strategy for FY26 highlights a balanced focus on upstream growth, downstream expansion, and petrochemical diversification. With record production achieved in FY25, the company is positioning itself for stronger output and value-added growth, while maintaining efficiency and navigating regulatory changes.

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