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IndianOil's Record Profit Surge: How Refining Margins Fueled 370% Growth

IndianOil has delivered an outstanding financial performance with profits skyrocketing to Rs 13,299 crore. The company achieved record sales volumes of 50.590 million metric tonnes during the first half. Strong refining margins of $6.32 per barrel significantly boosted the bottom line. Both domestic and export sales showed impressive growth across all product categories.

Key Points: IndianOil H1 Profit Jumps to Rs 13,299 Crore on Record Sales

  • Net profit surged 370% to Rs 13,299 crore from previous year's Rs 2,823 crore
  • Gross refining margin improved to $6.32 per barrel from $4.08
  • Record sales volumes reached 50.590 MMT with 4% domestic growth
  • Export sales jumped 25% while gas sales hit quarterly high of 1.840 MMT
2 min read

IndianOil H1 25-26 profit rises to Rs 13,299 crore as refining margins, sales hit record highs

IndianOil reports Rs 13,299 crore H1 profit with 370% growth, driven by record refining margins and highest-ever sales volumes of 50.590 MMT.

"The improvement in profits is mainly due to higher refining and marketing margins - IndianOil Press Release"

New Delhi, October 27

IndianOil reports its highest-ever first-half sales volumes and a sharp rise in profit for April-September 2025, led by stronger refining margins and steady marketing, according to an IndianOil press release.

The company's standalone net profit for H1 FY2025-26 is Rs 13,299 crore, up from Rs 2,823 crore a year earlier. Revenue from operations is Rs 4,21,600 crore, compared with Rs 4,11,138 crore in the same period last year. At the group level, revenue stands at Rs 4,28,297 crore and net profit is Rs 14,999 crore, higher than Rs 4,18,480 crore and Rs 3,274 crore, respectively, a year ago. The company says the improvement in profits is mainly due to higher refining and marketing margins.

Refining earnings show a clear lift. IndianOil's gross refining margin (GRM) for the half-year is USD 6.32 per barrel, versus USD 4.08 per barrel in H1 FY2024-25. On a normalized basis, after considering inventory gains or losses, the GRM is USD 7.89 per barrel, up from USD 2.97 per barrel last year.

Operationally, volumes grow across the system. Total sales volumes in H1 reached 50.590 million metric tonnes (MMT), compared with 48.213 MMT a year earlier. Domestic petroleum product sales rose 4 per cent to 42.589 MMT, while gas sales for the half-year increased to 3.525 MMT. Export sales moved up to 2.766 MMT, a 25 per cent rise year-on-year.

On refining, the half-year throughput touches 36.292 MMT, with 103 per cent capacity utilisation, up from 34.906 MMT. Pipelines carry 50.343 MMT, slightly higher than 49.796 MMT last year. The company also records its highest-ever quarterly gas sales of 1.840 MMT in Q2 of the current financial year.

Within product lines, petrochemicals show a 5 per cent rise in domestic sales to 1.544 MMT. High-speed diesel (HSD) institutional sales registered a strong 35.7 per cent jump over last year's H1, outpacing the industry's 12.8 per cent increase in that segment. The company says its overall domestic petroleum sales growth of 4.0 per cent is slightly higher than the industry's 3.9 per cent in the same period.

- ANI

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Reader Comments

P
Priya S
While the profit numbers are impressive, I hope this translates to better services at petrol pumps. The queues are still too long and digital payments often fail. Good performance should mean better customer experience too.
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Sarah B
As an investor, these numbers are very encouraging. The refining margin improvement from $4.08 to $6.32 per barrel shows excellent operational efficiency. IndianOil continues to be a solid blue-chip stock for long-term portfolios.
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Arjun K
The 35.7% jump in HSD institutional sales is remarkable! This indicates strong industrial and commercial activity across the country. When core sectors perform, it's good for everyone's livelihood. 🇮🇳
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Kavya N
Record profits are good, but I'm more interested in how this benefits the common person. Will we see more investment in rural fuel distribution or better LPG services? That's what really matters to families across India.
M
Michael C
The 103% capacity utilization is impressive engineering management. Shows how Indian companies are optimizing existing infrastructure rather than just building new. Smart operations lead to sustainable growth.

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