New Delhi, October 2026 : Indian Oil Corporation (IOC) reported a sharp recovery in its financial performance for the second quarter of FY27, with consolidated net profit rising 174 per cent year-on-year to ₹22,503 crore, compared with ₹8,191 crore in the corresponding quarter of the previous financial year.
The public sector oil major also recorded a 30 per cent increase in revenue from operations to ₹2.68 lakh crore during the July-September quarter, supported by improved refining margins, stronger petrochemical and gas margins, and higher domestic fuel sales.
The latest results mark a significant turnaround from the consolidated net loss of ₹1,141 crore reported by the company in the first quarter of FY27.
Indian Oil attributed the improvement in profitability primarily to a temporary decline in crude oil prices between mid-June and mid-August, along with healthy margins in its petrochemicals and gas businesses. Improved refining margins also helped offset losses on the sale of petrol and diesel, as public sector oil marketing companies continued to keep retail fuel prices unchanged despite elevated crude oil costs.
However, the company cautioned that falling international crude oil prices could affect its profitability in the coming quarters. A decline in crude prices may result in inventory losses, particularly if global oil markets remain volatile amid developments in West Asia.
LPG under-recoveries remain a concern
Despite the strong quarterly performance, Indian Oil continues to face financial pressure from under-recoveries on domestic liquefied petroleum gas (LPG) sales.
The company's cumulative net negative buffer arising from LPG under-recoveries stood at ₹32,505.69 crore as of September 30, 2026. This was despite the recognition of government compensation during the first half of the financial year.
Indian Oil recognised ₹7,243.02 crore as revenue from operations during the six-month period in connection with the compensation.
The burden of selling domestic LPG below cost, along with losses on retail fuel marketing, remains an important factor influencing the company's overall financial position. The extent of government support and changes in international energy prices will be key determinants of its performance in the coming quarters.
Domestic fuel sales rise 4.8%
On the operational front, Indian Oil recorded a 4.8 per cent increase in domestic fuel sales to 23.9 million tonnes during the September quarter. Exports, however, declined 11.3 per cent during the period.
The company's refining operations also registered growth. Crude oil throughput at its refineries increased to 37.273 million tonnes in the first half of FY27, compared with 36.292 million tonnes in the corresponding period of the previous financial year, representing an increase of around 3 per cent.
Refinery capacity utilisation stood at 105.8 per cent, indicating sustained operational activity across its refining network.
Pipeline throughput increases 7%
Indian Oil's extensive cross-country pipeline network also reported improved performance during the first six months of FY27. Combined pipeline throughput rose 7 per cent to 53.896 million tonnes, compared with 50.343 million tonnes in the corresponding period of the previous financial year.
The increase reflects higher utilisation of the company's pipeline infrastructure and continued movement of petroleum products and crude oil across its network.
The company's latest results highlight a strong improvement in profitability, supported by better refining and petrochemical margins, higher operating revenue and growth in domestic fuel demand.
Nevertheless, volatility in crude oil prices, LPG under-recoveries, retail fuel marketing losses and the possibility of inventory losses remain significant risks. These factors are likely to shape Indian Oil's financial performance as it moves into the second half of FY27.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
