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Oil India Ltd. Key Financial Ratios

NSE:OIL | OIL EXPLORATION/PRODUCTION

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Profitability Margins

2-year trend showing gross, operating, and net profit margins

FY 2024 - FY 2025

Oil India Ltd.'s net profit margin of 18.6% in FY2025 reflects good profitability, with operating margin at 26.4% and gross margin at 78.7%.

Understanding Profitability Margins

In FY 2025, Oil India Ltd. posted a gross margin of 78.7%, an operating margin of 26.4%, a net margin of 18.6%. Gross Margin = (Revenue - COGS) / Revenue; Operating Margin = EBIT / Revenue; Net Margin = Net Income / Revenue. Typical healthy ranges: Gross 20-40%, Operating 10-20%, Net 5-10%+. Consistent or improving margins indicate strong competitive positioning.

Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2024 - FY 2025

Oil India Ltd.'s revenue grew 0.5% to 378.30B and net profit grew 0.8% to 70.40B YoY in FY2025, indicating modest business momentum.

Understanding Company Performance

In FY 2025, Oil India Ltd.'s revenue grew by 0.5% year-over-year. Revenue is total income from operations. Gross Profit is revenue minus cost of goods. Net Profit is the bottom line after all expenses. Consistent growth across all three signals a healthy, expanding business.

Return on Equity (ROE)

2-year trend showing shareholder returns

FY 2024 - FY 2025

Oil India Ltd.'s ROE of 12.9% in FY2025 indicates moderate shareholder returns.

Understanding Return on Equity (ROE)

In FY 2025, Oil India Ltd. reported an ROE of 12.9%. ROE = (Net Income / Shareholders' Equity) x 100. Measures how efficiently the company turns equity into profit. Above 15% is generally strong; above 25% is excellent. Very high ROE may signal high leverage — check alongside debt levels.

Net Income vs Free Cash Flow

2-year trend comparing profitability with cash generation

FY 2024 - FY 2025

Oil India Ltd.'s FCF/NI ratio of -0.23x in FY2025 indicates weak cash generation raising concerns about earnings quality.

Understanding Net Income vs Free Cash Flow

In FY 2025, Oil India Ltd.'s free cash flow trailed net income. Free Cash Flow = Operating Cash Flow - Capital Expenditure. When FCF exceeds net income, it suggests high-quality, cash-backed earnings. Persistent gaps may indicate aggressive accounting or heavy capex needs.

Net Income vs Operating Cash Flow

2-year trend comparing profitability with cash from operations

FY 2024 - FY 2025

Oil India Ltd.'s OCF/NI ratio of 1.61x in FY2025 indicates strong cash collection and working capital efficiency.

Understanding Net Income vs Operating Cash Flow

In FY 2025, Oil India Ltd.'s operating cash flow exceeded net income. Operating Cash Flow is the actual cash from core operations. OCF exceeding net income signals strong cash collection. OCF trailing net income may indicate aggressive revenue recognition or working capital issues.

Leverage Ratios

Measure a company's financial leverage, liquidity, and ability to meet financial obligations.

Current Ratio Analysis

2-year trend showing short-term liquidity position

FY 2024 - FY 2025

Oil India Ltd.'s current ratio of 1.23x in FY2025 indicates healthy short-term liquidity.

Understanding Current Ratio

In FY 2025, Oil India Ltd. reported a current ratio of 1.23. Current Ratio = Current Assets / Current Liabilities. Measures short-term liquidity. A ratio of 1.5-3.0 is generally healthy; below 1.0 signals liquidity risk; above 3.0 may indicate underutilized assets.

Interest Coverage Ratio Analysis

2-year trend showing ability to service debt

FY 2024 - FY 2025

Oil India Ltd.'s interest coverage ratio of 9.3x in FY2025 indicates comfortable debt servicing capacity.

Understanding Interest Coverage Ratio

In FY 2025, Oil India Ltd. reported an interest coverage ratio of 9.3x. Interest Coverage = EBIT / Interest Expense. Shows how many times operating profit covers interest payments. Above 5x is comfortable; below 1.5x signals potential difficulty servicing debt.

Debt-to-Equity Ratio Analysis

2-year trend showing financial leverage and capital structure

FY 2024 - FY 2025

Oil India Ltd.'s debt-to-equity ratio of 0.56x in FY2025 reflects a balanced capital structure with moderate leverage.

Understanding Debt-to-Equity Ratio

In FY 2025, Oil India Ltd. reported a debt-to-equity ratio of 0.56. Debt-to-Equity = Total Debt / Total Equity. Below 1.0 is conservative; 1.0-2.0 is moderate; above 2.0 indicates higher financial risk. Capital-intensive industries naturally carry higher ratios.

Total Debt Analysis

2-year trend showing total debt with year-over-year changes

FY 2024 - FY 2025

Oil India Ltd.'s debt increased 27.5% YoY in FY2025 — rising leverage demands close monitoring.

Understanding Total Debt

In FY 2025, Oil India Ltd.'s total debt increased by 27.5% year-over-year. Total Debt includes short-term debt, long-term loans, debentures, and capital leases. YoY changes (shown as percentages) reveal whether the company is leveraging up or deleveraging.

Shares Outstanding

Year-over-year change in diluted shares outstanding

Oil India Ltd.'s diluted shares increased 50.0% YoY in FY2025 — significant dilution that warrants concern.

Over 2 years (FY2024–FY2025), diluted shares increased 50.0% from 1.08B to 1.63B, indicating cumulative dilution.

Understanding Shares Outstanding

In FY 2025, Oil India Ltd.'s diluted shares increased by 50.0% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2025