Indian Oil Posts Stunning Q2 Turnaround: Rs 8,190 Crore Profit vs Loss
Indian Oil Corporation (IOC) has delivered a remarkable financial performance in Q2 FY26, reporting a consolidated net profit of Rs 8,190.86 crore. This marks a dramatic turnaround from the Rs 448.78 crore loss recorded in the same quarter last fiscal year.
Key Takeaways
- Net profit surged to Rs 8,190.86 crore in Q2 FY26 versus a loss last year
- Revenue grew 3.94% year-on-year to Rs 2,06,447 crore
- Gross refining margin strengthened to $10.6 per barrel
- 20% quarterly profit growth compared to Q1 FY26
Financial Performance Highlights
The public sector oil giant demonstrated strong quarterly growth with a 20% increase in net profit compared to the first quarter of FY26, where it had reported Rs 6,808 crore. Revenue from operations reached Rs 2,06,447 crore in Q2 FY26, showing a 3.94% year-on-year growth from Rs 1,98,615 crore in the corresponding quarter last fiscal.
Refining Margins Strengthen
Indian Oil’s refining business showed significant improvement, with average gross refining margin for the September quarter standing at $10.6 per barrel. The company, along with its subsidiary Chennai Petroleum, controls approximately one-third of India’s 5 million barrels per day refining capacity.
For the first half of FY26, the company’s margins averaged $6.32 per barrel, a substantial improvement from $4.08 per barrel in the same period of the previous fiscal year.
Market Dynamics and Export Strategy
Fuel demand patterns in India showed mixed trends during the quarter. While demand decreased in July compared to the same period last year, it recovered in August and September. Meanwhile, crude oil costs declined during the quarter, benefiting refiners’ margins.
Indian oil refiners are capitalizing on expanded processing capacity and increased domestic ethanol blending by ramping up gasoline and diesel exports to their highest levels in several years. This strategic shift has freed up additional fuel supplies for overseas markets, contributing to improved profitability.
