Indian Oil clocks 174 per cent jump in Q2 net profit at Rs 22,503 crore
New Delhi, Oct 30
Government-owned Indian Oil Corporation bounced back with a 174 per cent year-on-year jump in consolidated net profit to Rs 22,503 crore in the second quarter of 2026-27 after having plunged into a Rs 1,141 crore loss in the first quarter.
The oil giant recorded a net profit of Rs 8,191 crore in the same quarter of 2025-26.
"The current quarter's profitability was largely driven by a temporary decline in crude oil prices from mid-June to mid-August and robust margins from petrochemicals and gas. However, profitability in upcoming quarters may be adversely impacted by inventory losses due to a potential fall in crude oil prices with normalisation of the situation in West Asia," an Indian Oil statement said.
The company, however, warned that profitability in the upcoming quarters might be adversely impacted by inventory losses due to a potential fall in crude oil prices with the normalisation of the situation in West Asia.
The sharp improvement in refining margins during the July-September quarter has helped the company offset losses incurred on the sale of petrol and diesel. The public sector oil marketing companies (OMCs) are incurring heavy marketing losses as they have left retail prices unchanged and not passed on the cost of soaring crude oil prices to consumers.
Indian Oil's revenue from operations increased 30 per cent to Rs 2.68 lakh crore in the July-September quarter.
The company's cumulative net negative buffer arising from under-recoveries on domestic LPG sales stood at Rs 32,505.69 crore as on September 30, despite the recognition of government compensation during the six-month period. The company recognised Rs 7,243.02 crore as revenue from operations for the period.
IOC recorded a 4.8 per cent increase in fuel sales in the domestic market to 23.9 million tonnes (mt) in the second quarter, while exports declined 11.3 per cent during the period.
Refinery crude throughput improved 3 per cent to 37.273 mt during the first six months of 2026-27 (H1FY27), with 105.8 per cent capacity utilisation, compared with 36.292 mt a year earlier.
Indian Oil's cross-country pipelines achieved a combined throughput of 53.896 mt in H1FY27, an improvement of 7 per cent compared with 50.343 mt a year earlier, the company statement added.
— IANS
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