Indian Oil Corporation (IOC), the country’s largest state-owned refiner, reported a significant turnaround in its financial performance for the second quarter of FY26. The Maharatna PSU posted a consolidated net profit of ₹8,190.86 crore, marking a sharp recovery from a loss of ₹448.78 crore in the same quarter last year.
Financial Performance Overview
For the quarter ended September 2025, IOC’s revenue from operations stood at ₹2,06,447 crore, reflecting a 3.94% year-on-year (YoY) growth compared to ₹1,98,615 crore in Q2 FY25. The improvement was primarily driven by strong refining margins, stable crude prices, and steady fuel demand recovery in India.
On a sequential basis, the company’s profit rose 20% from ₹6,808 crore in the first quarter of FY26, underscoring consistent operational strength.
Refining Margins and Business Highlights
Indian Oil, along with its subsidiary Chennai Petroleum Corporation, operates nearly one-third of India’s 5 million barrels per day refining capacity. The company’s average gross refining margin (GRM) for the September quarter was $10.6 per barrel, while its H1 FY26 average margin stood at $6.32 per barrel, significantly higher than $4.08 per barrel recorded in the same period last fiscal.
Despite a brief decline in fuel demand during July, consumption rebounded strongly in August and September, supported by stable crude prices and festive season demand. The company also benefited from increased exports of gasoline and diesel, as expanded refining capacity and higher ethanol blending freed up additional supplies for overseas markets.
Outlook
IOC’s strong Q2 performance demonstrates resilience amid global energy price fluctuations. The company continues to focus on optimizing refinery operations, diversifying into cleaner fuels, and strengthening its retail and export portfolios to sustain profitability.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Investors should consult professional advisors before making any investment decisions.
