Oil Country Q2 FY27 Results (NSE: OILCOUNTUB)
Signal: Loss narrowed
The read
The operating inflection is volume concentration rather than a durable earnings recovery: revenue rose 150.5% YoY to ₹2,516.91 lakh, but gross margin collapsed 2,897bps to 60.1% and depreciation of ₹4,657.51 lakh kept PAT at a ₹1,238.59 lakh loss. The H1 cash-flow deficit of ₹1,178.43 lakh and planned depreciation reduction from December 2026 are the key trajectory variables.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹25.17 Cr | +150.5% | +44.3% |
| Net profit | ₹-12.39 Cr | -42.6% (loss narrowed) | |
| EPS | ₹-2.33 | -43.9% (loss per share narrowed) |
P&L walk
Standalone revenue rose 150.5% YoY to ₹2,516.91 lakh and 44.3% QoQ, led by drill-pipe and allied products, but gross margin compressed 2,897bps to 60.1% as raw material cost rose to 27.1% of revenue from 10.8%; depreciation of ₹4,657.51 lakh kept the company at a ₹1,238.59 lakh loss.
Segments
Drill Pipe and Allied Products drove the revenue rebound to ₹2,498.02 lakh from ₹19.92 lakh YoY but still generated a ₹1,264.15 lakh loss versus ₹1,196.29 lakh, while OCTG Services reduced its loss to ₹9.75 lakh from ₹773.69 lakh on revenue of ₹18.88 lakh versus ₹984.87 lakh.
Key positives
- Revenue from operations increased 150.5% YoY to ₹2,516.91 lakh and 44.3% QoQ, led by Drill Pipe and Allied Products revenue of ₹2,498.02 lakh.
- OCTG Services reduced its segment loss to ₹9.75 lakh from ₹773.69 lakh YoY, although revenue fell 98.1% to ₹18.88 lakh.
- Employee benefits rose 33.7% YoY to ₹352.32 lakh, materially slower than the 150.5% revenue growth, reducing employee cost intensity to 14.0% from 26.2%.
Key concerns
- Gross margin compressed 2,897bps YoY to approximately 60.1% as raw material cost rose to 27.1% of revenue from 10.8%; revenue grew 150.5% but cost absorption remained severe.
- Drill Pipe and Allied Products generated a ₹1,264.15 lakh loss despite ₹2,498.02 lakh revenue, and its loss worsened from ₹1,196.29 lakh YoY.
- Depreciation of ₹4,657.51 lakh was 185.0% of quarterly revenue, leaving the company with a ₹1,238.59 lakh loss despite the revenue rebound.
Research and educational content only. Not investment advice.