Indian Oil Reports 174% Surge in Q2 Net Profit to Rs 22,503 Crore

New Delhi- Indian Oil Corporation (IOC), the country's largest oil marketing company, reported a strong financial recovery in the second quarter of the 2026-27 financial year, with consolidated net profit soaring 174 per cent year-on-year to Rs 22,503 crore.

The company had posted a net profit of Rs 8,191 crore in the corresponding quarter of the previous financial year. The latest performance also marks a sharp turnaround from the Rs 1,141 crore consolidated net loss recorded in the April-June quarter of FY27.

According to Indian Oil, the strong profitability during the July-September quarter was primarily driven by a temporary decline in crude oil prices between mid-June and mid-August, along with healthy margins in its petrochemicals and natural gas businesses.

However, the company cautioned that its earnings could come under pressure in the coming quarters. A potential decline in crude oil prices following the normalisation of the situation in West Asia could result in inventory losses, adversely affecting profitability.

Improved refining margins during the quarter also helped Indian Oil offset losses incurred on the sale of petrol and diesel. Public sector oil marketing companies have been absorbing higher input costs rather than fully passing on rising crude oil prices to consumers, resulting in significant under-recoveries in fuel marketing.

Indian Oil's revenue from operations increased 30 per cent to Rs 2.68 lakh crore during the quarter, reflecting higher business activity and improved operational performance.

The company also highlighted the continuing financial burden arising from under-recoveries on domestic LPG sales. Its cumulative net negative buffer on this account stood at Rs 32,505.69 crore as of September 30, despite government compensation recognised during the first half of the financial year. Indian Oil recorded Rs 7,243.02 crore as revenue from operations against the compensation during the six-month period.

On the operational front, IOC registered a 4.8 per cent increase in domestic fuel sales to 23.9 million tonnes during the second quarter. However, exports declined by 11.3 per cent over the same period.

The company's refining operations also recorded growth. Crude oil throughput rose 3 per cent to 37.273 million tonnes during the first six months of FY27, compared with 36.292 million tonnes in the corresponding period of the previous year. Refinery capacity utilisation stood at 105.8 per cent.

Indian Oil's extensive cross-country pipeline network also reported improved performance, with combined throughput reaching 53.896 million tonnes during the first half of FY27, up 7 per cent from 50.343 million tonnes a year earlier.

The quarterly results highlight a strong recovery in Indian Oil's refining business, although uncertainties surrounding crude oil prices, fuel marketing margins and LPG under-recoveries remain important factors for its financial performance in the coming quarters.

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