Indian Oil Corporation’s consolidated net profit more than doubled year-on-year to around ₹22,503 crore in the second quarter of FY27, as lower crude oil prices and stronger refining, petrochemical and gas margins offset losses from selling petrol, diesel and LPG below market rates.
The state-run oil marketing company reported consolidated total income of around ₹2.69 lakh crore for the quarter ended September 30, 2026. Income was lower than the ₹2.82 lakh crore recorded in the first quarter of FY27 but higher than the ₹2.07 lakh crore reported in the same quarter a year earlier.
Total expenses stood at ₹2.41 lakh crore in Q2 FY27, compared with ₹2.84 lakh crore in the previous quarter and ₹1.97 lakh crore in Q2 FY26. On a sequential basis, however, Indian Oil had reported a consolidated net loss of roughly ₹1,411 crore in the preceding quarter.
Indian Oil attributed the quarter’s profitability mainly to a temporary decline in crude oil prices between mid-June and mid-August and robust margins from its petrochemicals and gas businesses. The company also cautioned that profitability in upcoming quarters could be affected by inventory losses if crude oil prices fall as conditions in West Asia normalise.
The company did not report its gross refinery margins for either Q2 FY27 or the first half of the financial year. Its refineries processed 37.273 million tonnes of crude during the first half of FY27, compared with 36.292 million tonnes in the corresponding period of FY26. This represented a 3 per cent increase, with capacity utilisation reaching 105.8 per cent.
Indian Oil’s cross-country pipeline network handled a combined throughput of 53.896 million tonnes during the first half of FY27, up from 50.343 million tonnes a year earlier. Total sales volume rose to 51.439 million tonnes from 50.590 million tonnes, a 2 per cent increase.
The company’s domestic market share increased to 42.7 per cent in the first half of FY27 from 41.5 per cent in the year-ago period. Petrol sales grew 9 per cent and diesel sales increased 8 per cent during the same period. These figures reflect the scale of Indian Oil’s role in supplying fuels across urban transport, freight movement, industry and household energy markets.
The company’s results also highlighted the continuing financial pressure associated with LPG pricing. In its results filing with the BSE, Indian Oil said its under-recoveries from liquefied petroleum gas stood at ₹32,505.69 crore as of September 30, 2026. Under-recoveries arise when the cost of supplying the product exceeds the price at which it is sold under the prevailing pricing arrangement.
Indian Oil also disclosed that its Audit Committee had been discontinued with effect from March 28, 2026, because of the non-availability of Independent Directors on the company’s Board. The company’s next-quarter performance will be shaped by crude oil prices, refining and petrochemical margins, fuel sales and the treatment of LPG under-recoveries.
