Indian Oil Corporation Limited (IOCL), an oil refiner and fuel retailer, delivered a strong financial performance for the quarter ended September 30, 2025 (Q2 FY26), marking a significant turnaround from last year’s loss.
Sharp Turnaround in Profitability
The state-run energy major reported a net profit of ₹8,190.86 crore in Q2 FY26, compared to a net loss of ₹448.78 crore in the same quarter last year. The robust recovery was driven by improved refining margins, disciplined cost control, and efficient operations management.
Steady Growth in Revenue and Income
IOCL’s revenue from operations stood at ₹2,06,447.11 crore, reflecting a 4% year-on-year increase from ₹1,98,615.80 crore in Q2 FY25. However, on a sequential basis, revenue declined by 6% from ₹2,21,849.02 crore in Q1 FY26, due to softening crude oil prices and lower product realizations. The company’s total income for the quarter rose to ₹2,07,091.44 crore, up 3.9% from ₹1,99,339.05 crore in the corresponding quarter last year, though slightly below the ₹2,22,432.27 crore recorded in the previous quarter.
Expense Optimization Boosts Margins
IOCL maintained tight control over expenses, which came in at ₹1,96,699.02 crore, down from ₹2,01,760.21 crore a year earlier. The cost of materials consumed declined 4.1% to ₹1,03,246.05 crore, reflecting easing input costs and efficient procurement strategies. Meanwhile, finance costs fell slightly to ₹2,269.69 crore from ₹2,374.00 crore, while employee benefits expenses rose 10.7% year-on-year to ₹2,902.71 crore, driven by revised pay structures and workforce expansion in key operations.
Profit Before Tax Reflects Strong Operational Recovery
IOCL posted a profit before tax (PBT) of ₹11,103.71 crore for the quarter, a dramatic rebound from the ₹588.71 crore loss in Q2 FY25. This improvement underscores the company’s ability to adapt to market volatility and enhance operational efficiencies. For the first half of FY26 (April–September 2025), Indian Oil’s net profit surged 336% year-on-year to ₹14,631.62 crore, compared to ₹3,358.91 crore in H1 FY25.
As reported by indianpsu.com, the strong performance reflects resilient refining operations, steady fuel demand, and effective margin management across the company’s value chain. With this robust showing, Indian Oil continues to strengthen its financial footing while advancing its strategic goals in refining, retail, and clean energy transformation.
