Oil India Limited

OIL

Structural risk assessment following Q4-FY26 | 31 Mar 26 earnings.

⚠️
Current Risk ClassWatch
⚠️
Risk Score Change(Higher = More Risk)
Quarterly AssessmentRisk Deteriorated

Q3-FY26 | 31 Dec 25

24

Risk Score

+5 pts

Q4-FY26 | 31 Mar 26

29

Risk Score

🔴Risk increased by +5 points

Flagium detected:

  • Relative Growth Weakness
  • Inventory Stress
  • Working Capital Expansion

ℹ️ Executive Summary

Oil India Limited posted steady top-line growth and bottom-line stability, demonstrating resilient execution in its core markets. While the underlying business remains fundamentally sound, the presence of 3 active risk warnings highlights minor operational or working capital inefficiencies to keep on the watch list.

🛡️ Sentinel Insight

"Oil India Limited currently sits within Flagium's Watch category. However, recent periods have introduced early signs of revenue growth headwinds. Despite positive top and bottom-line growth, triggers like 'Relative Growth Weakness', 'Inventory Stress' indicate underlying structural risk. While not currently existential, persistent friction suggests that structural risk is rising."

The Quarter at a Glance

MetricQ4-FY26 | 31 Mar 26Q4-FY25 | 31 Mar 25Change
Revenue₹10,514.5 Cr₹9,970.1 Cr+5.5%
EBIT Margin25.70%24.72%+98 bps
Net Profit (PAT)₹2,424.5 Cr₹1,497.0 Cr+62.0%
Interest Expense₹381.3 Cr₹244.3 Cr+56.1%

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What Changed Beneath the Headlines?

Revenue Growth

Quarterly revenue changed by +5.5% YoY, reflecting demand and volume updates.

Net Profit Expansion

Profit after tax changed by +62.0% YoY, settling at ₹2,424.5 Cr.

Operating Margins

Operating margin expanded by 98 bps YoY to 25.70%.

Flagium Risk Signals

CategoryTrend Deterioration
SignalRelative Growth Weakness
SeverityModerate

Revenue growth consistently lags behind sector median (13.2%).

CategoryOperational Efficiency
SignalInventory Stress
SeverityModerate

Inventory growth (8.6%) significantly outpaced revenue growth (5.5%).

CategoryOperational Efficiency
SignalWorking Capital Expansion
SeverityModerate

Working capital expansion detected: Receivable days increased by 30.7%.

What the financials are implicitly signaling

Flagium's structural analysis indicates:

  • Demand visibility remains weak, leading to a focus on volume conservation over pricing power.
  • Capacity utilization calibration is being monitored to align with slow volume intake.
  • Working capital conversion cycles require active support to sustain cash conversions.

Signals to Monitor Next Quarter

Watch 01

Raw material price movement and its impact on operating margins.

Watch 02

Working capital efficiency and cash flow conversions.

Watch 03

Domestic demand recovery and segment-wise volume growth.

Historical Quality Trend

Last 6 Quarters
QuarterRisk ScoreTrendCurrent Risk Class
Q4 FY2629🟠 Watch
Q3 FY2624🟠 Watch
Q2 FY2627🟠 Watch
Q1 FY2614🟢 Stable
Q4 FY259🟢 Stable
Q3 FY2510🟢 Stable

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What to do next

Disclaimer

Flagium AI is an automated financial data analytics platform. Analysis reports are compiled programmatically from public regulatory XBRL submissions (NSE/BSE). This evaluation does not constitute investment advice, financial planning, or recommendations to buy, sell, or hold any security. Please consult a SEBI-registered investment advisor before acting on any data presented.