Oil India shares were up 3% after announcing results on Tuesday after market close.

What Happened: Oil India reported a 464% year-on-year jump in standalone net profit to ₹1,834.07 crore. The company's revenue fell 6.7% from the previous year to ₹5,518.95 crore. 

The net profit had beaten Motilal Oswal's ₹1667.7 crore expectation while revenue was in line with ₹5587.2 crore expectation.

The company also announced an interim dividend of ₹3. The record date for the interim dividend is November 15 and the dividend will be paid on or before December 4. 

Reacting to the results, analysts at Motilal Oswal noted that Oil India’s EBITDA was 11% below estimates, primarily due to gas sales of 0.65 bcm, which were significantly lower than the expected 0.74 bcm, and a 14% increase in other operating expenses year-on-year.

The rise in other expenses is likely linked to impairments or exploration cost write-offs, with further clarity expected in the upcoming conference call. However, the company's PAT exceeded expectations by 10%, mainly due to higher other income. Revenue for the quarter was in line with estimates. The brokerage has a “buy” rating on the stock.

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The company's crude oil output increased by 4.79% from the previous year to 0.875 MMT in Q2. Natural gas production fell from 0.810 BCM in the previous year to 0.799 BCM. Oil and Oil equivalent production increased from 1.645 MMTOE in the previous year to 1.674 MMTOE. 

In September, Oil India was reportedly preparing to start exploration activities in Nagaland. Oil India has 30 blocks under the Open Acreage Licensing Policy (OALP). All the wells in these OALP blocks have been drilled, except those in Nagaland.

Price Action: Shares of Oil India rose 3.83% to ₹514.60. 

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