Oil Country Q1 FY27 Results (NSE: OILCOUNTUB)
Signal: Loss widened
The read
The quarter marks a near-total collapse in OCTG Services revenue, leaving Drill Pipe as the sole business — yet Drill Pipe itself recorded a massive PBIT loss due to raw material costs spiking 333% YoY while its own revenue was barely up 7.5%, suggesting inventory cost recognition rather than genuine input-cost pass-through. The company is asset-heavy (depreciation ₹16.59 Cr on only ₹17.4 Cr revenue) and equity is rapidly being eroded (reserves fell to ₹0.75 Cr). Sustained losses will soon impair net worth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹17.44 Cr | -29.03% | -41.59% |
| EBIT | ₹-15.08 Cr | ||
| Net profit | ₹-15.11 Cr | ||
| EPS | ₹-2.9 |
P&L walk
Revenue collapsed 29% YoY as OCTG Services segment revenue virtually vanished (₹12.22 Lakh vs ₹846.29 Lakh). Gross margin went deeply negative due to a massive spike in material consumed cost (₹928.36 Lakh vs ₹214.38 Lakh YoY), far outpacing the revenue drop. Employee costs rose 20% despite lower revenue. Depreciation remained high at ₹16.59 Cr, crushing any chance of operating profit. Net loss widened to ₹15.11 Cr from ₹8.81 Cr YoY.
Segments
OCTG Services effectively ceased operations (₹0.12 Cr revenue vs ₹8.46 Cr YoY), and Drill Pipe segment revenue was flat YoY at ₹17.31 Cr but swung to a PBIT loss of ₹15.37 Cr (vs ₹1.34 Cr loss last year) as material costs skyrocketed, dragging the entire company deeply into the red.
Key positives
- Finance cost reduced 52% YoY to ₹0.16 Cr, indicating debt reduction.
Key concerns
- OCTG Services revenue virtually zero (₹0.12 Cr vs ₹8.46 Cr YoY), signaling loss of a key business line.
- Material consumed cost exploded 333% YoY to ₹9.28 Cr, far outpacing revenue growth, squeezing margins.
- Depreciation of ₹16.59 Cr is nearly equal to total revenue, leaving no room for operating profit.
- Net loss widened 72% YoY to ₹15.11 Cr on revenue that fell 29%, compounding equity erosion (reserves now only ₹0.75 Cr).
- EPS dilution: basic shares outstanding increased 8% YoY, worsening per-share loss despite lower aggregate loss growth.
Research and educational content only. Not investment advice.