Indian Oil Profit soars 7,280% in Q2 FY26 to ₹13,288 crore, driven by high refining margins, cost efficiency, and strong domestic fuel demand.
TheInterviewTimes.com | New Delhi | October 27, 2025 — Indian Oil Profit has witnessed an extraordinary surge in Q2 FY26, with Indian Oil Corporation Ltd (IOC) — the country’s largest state-owned refiner — reporting a record standalone net profit of ₹13,288 crore for the July–September quarter. This marks an unprecedented 7,280% year-on-year rise, compared to just ₹180 crore in the same quarter last year. The massive jump was driven by robust refining margins, efficient cost control, and resilient domestic fuel demand.
Record-Breaking Indian Oil Profit Growth
The Indian Oil Profit figures for Q2 FY26 stand among the most impressive corporate turnarounds in India’s energy sector. For the quarter ending September 30, IOC’s net profit skyrocketed to ₹13,288 crore — up 33.8% sequentially from ₹5,689 crore in the previous quarter.
Revenue from operations rose 4% year-on-year to ₹2.03 lakh crore, reflecting IOC’s ability to maintain strong market performance despite volatile crude oil prices and global supply constraints.
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Refining Margins Drive Indian Oil Profit Surge
The primary factor behind the Indian Oil Profit surge was a sharp improvement in refining margins. During Q2 FY26, IOC earned $19.6 per barrel of crude oil processed — a massive leap from $1.59 per barrel in Q2 FY25. For the April–September period, the company’s gross refining margin averaged $6.32 per barrel, compared to $4.08 per barrel a year earlier.
Lower international crude prices and enhanced operational efficiency helped reduce input costs by 7.5%, with overall expenses down 1.5% to ₹1.94 trillion. This efficient cost management directly strengthened the Indian Oil Profit trajectory for the quarter.
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Operational Strength and Market Impact
IOC’s refinery throughput touched 17.608 million metric tonnes, marking a 5.2% growth year-on-year. A rebound in domestic fuel consumption and higher exports of petrol and diesel, supported by expanded ethanol blending and crude processing capabilities, further contributed to the Indian Oil Profit surge.
Following the earnings announcement, IOC shares jumped 3.23% to ₹155.20 on the Bombay Stock Exchange (BSE), raising the company’s market capitalization to ₹2.17 lakh crore. Year-to-date, the stock has gained 11.67%, underscoring investor confidence in the Indian Oil Profit revival and the company’s operational resilience.
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Sector Context: Refiners Ride Global Tailwinds
The remarkable Indian Oil Profit comes amid a favorable environment for Indian refiners. Singapore gross refining margins surged over 2,000% in 10 days, reaching $8.6 per barrel, signaling broad industry momentum.
However, challenges loom. Global sanctions on Russian crude exporters could affect sourcing and pricing dynamics, potentially influencing future Indian Oil Profit trends. Still, India’s strong domestic demand for transportation fuels and petrochemicals provides a stabilizing cushion for IOC and other refiners.
Future Outlook: Sustaining Indian Oil Profit Momentum
Analysts believe that the sustained Indian Oil Profit growth underscores IOC’s strategic strength and adaptability in a volatile energy market. The company’s focus on operational efficiency, diversified crude sourcing, and expanding petrochemical output positions it well for long-term stability.
As global oil markets fluctuate, IOC’s disciplined financial management and growing export capability will remain crucial to maintaining the Indian Oil Profit trajectory in the coming quarters.
Conclusion
The historic rise in Indian Oil Profit highlights IOC’s commanding role in India’s energy revival. With refining margins at record highs, strong domestic demand, and expanding exports, Indian Oil Corporation is emerging as a global benchmark for resilience and profitability in the refining sector. Despite external risks, the Indian Oil Profit story of FY26 sets a powerful precedent for state-owned enterprises navigating complex global energy transitions.