Maharatna stock jumps after JV with Assam Power Corp for renewable energy projects

Maharatna Stock engaged in exploration, development, and production of crude oil and natural gas rose 2 percent after the company signed an MoU for critical mineral exploration and formed a joint venture for renewable energy projects. The initiatives aim to expand its presence in sustainable energy and mineral resources.

Price Action

In Tuesday’s trading session, the share price of Oil India Ltd reached an intra-day high of Rs.386.00 per share, rising 2 percent from its previous close of Rs.378.80 per share. However, the stock declined later to Rs.377.35 each. Over the past five years, the shares have delivered over 425 percent returns.

New Developments

Oil India has formed a joint venture with Assam Power Generation Corporation, named APGCL OIL Green Power, to develop and operate renewable energy projects, as per its filing with Indian bourses on Saturday. The company holds a 49 percent stake in the JV, acquiring 100,000 shares at Rs. 10 each. The partnership will focus on solar, small hydro, wind, biomass, hydrogen-based projects, and green hydrogen infrastructure.

Oil India has signed an MoU with Mineral Exploration and Consultancy to jointly explore and develop critical mineral blocks in India and abroad, as per its filing with Indian bourses on Saturday. The collaboration involves joint exploration efforts, including the recently allocated Phop Graphite and Vanadium block in Arunachal Pradesh, India.

Operations 

Oil India Limited (OIL) is a major player in India’s oil and gas sector, operating across several states and offshore areas. It contributes significantly to the country’s crude oil and natural gas production. The company also has a subsidiary, Numaligarh Refinery Limited, and is expanding into renewable energy ventures. OIL is the second-largest national oil and gas company in India.

Also read: Infra stock jumps 3% after receiving order worth over ₹9 Cr for 2.08 MWp Solar Project

Financial Performance

Turning towards the company’s financials, Oil India Ltd reported a Q3 FY25 revenue of Rs.8,337 crore, marking a 13 percent decline from Rs. 9,614 crore in the same quarter last year. Profit After Tax (PAT) fell by 44 percent to Rs. 1,457 crore, compared to Rs.2,608 crore in the corresponding period.

In Q3 FY25, Oil India’s standalone crude oil production increased by 1.4 percent, reaching 0.868 MMT, compared to 0.856 MMT in Q3 FY24. For the nine months ending December 2024, crude oil production totaled 2.614 MMT, reflecting a 4.1 percent increase from 2.511 MMT in the same period last year. Additionally, natural gas production for the same nine-month period was 2.446 BCM, marking a 2.9 percent growth from 2.377 BCM year-over-year.

Company Profile

Oil India Limited, a central public sector undertaking, holds a crucial position in India’s oil and gas industry. The company boasts substantial infrastructure, including a key 1,157 km crude oil pipeline running from Duliajan to Barauni, which serves as a vital transportation link for its operations.

Written by – Siddesh S Raskar

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