Oil Country Tubular Limited reported a standalone net loss of ₹15.11 crore for the quarter ended June 2026, representing a significant deterioration from the net loss of ₹8.81 crore recorded in the corresponding quarter of the previous financial year. According to the latest financial results, this marks a 72% increase in losses year-on-year for the company. The Board of Directors approved the unaudited standalone financial results on July 30, 2026, with statutory auditors CKS Associates LLP issuing a limited review report confirming compliance with Indian Accounting Standard 34 for interim financial reporting.
The company's financial performance was significantly impacted by a substantial decline in sales revenue. Revenue from operations declined 29.02% to ₹17.44 crore in Q1 FY27 compared to ₹24.57 crore in the same quarter of the previous financial year. As reported in the latest results, total income fell 28.8% to ₹17.83 crore from ₹25.06 crore in Q1 FY26, while total expenses remained relatively stable at ₹33.08 crore compared to ₹33.46 crore in the previous year. The segment-wise breakdown reveals that Drill Pipe and Allied Products contributed ₹17.31 crore, while OCTG Services generated only ₹1.22 crore, representing a sharp decline from ₹8.46 crore in the previous year.
The company's operational efficiency showed mixed results during the quarter. Operating profit margin (OPM) improved to 6.31% in Q1 FY27 from 35.78% in the corresponding quarter of the previous year. However, PBDT (Profit Before Depreciation and Tax) declined 85% to ₹1.34 crore from ₹8.94 crore in Q1 FY26. According to the latest results, EBITDA remained positive at ₹1.51 crore despite the challenging revenue environment. Depreciation and amortisation expenses remained the largest cost component at ₹16.59 crore, slightly lower than the ₹17.51 crore recorded in the preceding quarter but higher than ₹17.34 crore in Q1 FY26. Cost of materials consumed was ₹9.28 crore, while employee benefits expenses remained stable at ₹3.00 crore.
During the quarter, the company underwent significant capital restructuring through the conversion of Optional Convertible Preference Shares (OCPS). The company issued and allotted 41.95 lakh equity shares of face value ₹10 each, fully paid up, following the conversion of OCPS into equity shares at a premium of ₹55 each on June 18, 2026. This transaction increased the paid-up equity share capital to ₹56.18 crore from ₹51.99 crore. The company also reported reserves excluding revaluation reserves at ₹7.47 crore, down from ₹70.29 crore in the previous quarter, reflecting the impact of current period losses. As per the latest results, this capital restructuring appears to be part of the company's strategy to optimize its capital structure during challenging market conditions.
