Feb 10 (Reuters) - Indian explorer Oil India (OILI.NS) , opens new tab reported a fall in third-quarter profit on Tuesday as lower realisations squeezed margins, despite higher fuel demand.

The state-owned firm's standalone profit, which excludes earnings from joint ventures and overseas operations, fell 33.8% to 8.08 billion rupees ($89.2 million) for the quarter ended December 31.

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Oil India's crude oil price realisation - the price at which it sells products - fell to $62.84 per barrel from $73.82 per barrel a year earlier, tracking a decline in global crude prices. Brent crude dropped more than 9% during the October-December quarter.

The fall in crude prices dragged down overall revenue, while costs climbed, squeezing margins. Oil India's operating margin contracted to 13.58% from 30.65% a year earlier.

Revenue from operations fell 6.2% to 49.16 billion rupees, with revenue from Oil India's crude oil segment - its largest - dropping 10.7%. Its natural gas segment's revenue, however, grew 3.2%.

The firm's total expenses rose 16.4% to 45.15 billion rupees.

Meanwhile, fuel consumption in India, the world's third-largest consumer and importer of oil, rebounded 5.5% and 5.3% year-on-year in November and December, respectively, after a 0.4% drop in October, according to data from Petroleum Planning and Analysis Cell.

Oil India approved a second interim dividend of seven rupees per share for the current financial year.

($1 = 90.5530 Indian rupees)

https://www.reuters.com/business/energy/oil-indias-quarterly-profit-declines-lower-crude-realisations-2026-02-10/