New Delhi, November 2, 2026: Indian Oil Corporation Limited (IndianOil), one of India’s largest public sector energy companies, reported a sharp turnaround in profitability during the second quarter of FY2026-27, with standalone net profit rising to ₹21,630 crore, compared with ₹7,610 crore in the corresponding quarter of the previous year.
On a consolidated basis, IndianOil reported net profit of approximately ₹22,503 crore, up 174% year-on-year from ₹8,191 crore. The strong quarterly performance was supported by improved refining margins, robust petrochemical and gas margins, higher sales and government compensation related to domestic LPG under-recoveries.
Profit Nearly Triples Year-on-Year
IndianOil’s standalone Q2 FY27 PAT of ₹21,630 crore represents a 184% year-on-year increase over ₹7,610 crore in Q2 FY26.
The company also staged a significant turnaround from the previous quarter. IndianOil had reported a standalone net loss of ₹2,661 crore in Q1 FY27, making the Q2 performance particularly significant.
Standalone profit before tax increased to ₹26,617 crore, compared with ₹10,066 crore in Q2 FY26.
The consolidated numbers were also strong, with Q2 FY27 consolidated PAT reaching ₹22,503 crore compared with ₹8,191 crore a year earlier.
Revenue Crosses ₹2.6 Lakh Crore
IndianOil’s standalone revenue from operations increased nearly 30% year-on-year to ₹2,62,936 crore during Q2 FY27, compared with ₹2,02,992 crore in Q2 FY26.
On a consolidated basis, revenue from operations stood at approximately ₹2.68 lakh crore, reflecting strong activity across the company’s refining, petroleum products, petrochemicals and gas businesses.
The increase in revenue comes despite the volatility witnessed in global crude oil prices during the quarter.
Refining Margins Support Profitability
IndianOil said the quarter’s profitability was largely supported by a temporary decline in crude oil prices from mid-June to mid-August, along with robust margins in its petrochemical and gas businesses.
Improved refining margins helped offset pressure on the company’s fuel marketing business, where state-owned oil marketing companies continued to face challenges because retail petrol and diesel prices remained relatively stable despite fluctuations in international crude prices.
However, IndianOil has also cautioned that a subsequent fall in crude prices could result in inventory losses and affect profitability in future quarters.
LPG Compensation Provides Additional Support
Another important factor behind IndianOil’s strong quarterly profitability was government compensation relating to losses incurred on subsidised domestic LPG sales.
During the six months ended September 2026, IndianOil recognised approximately ₹7,243 crore as revenue from operations towards government compensation for LPG under-recoveries.
The company nevertheless reported a cumulative negative buffer of approximately ₹32,506 crore from under-recoveries on domestic LPG sales as of September 30, highlighting the continuing financial impact of subsidised LPG pricing on public-sector fuel retailers.
This aspect is particularly important when assessing the sustainability of the quarter’s exceptionally high profit.
Record H1 Operational Performance
IndianOil’s first-half FY27 operational performance also remained strong.
The company recorded its highest-ever H1 crude throughput of 37.273 million tonnes (MMT), with refinery capacity utilisation reaching 105.8%.
Its cross-country pipeline network achieved a record H1 throughput of 53.896 MMT, up 7% from 50.343 MMT in H1 FY26.
IndianOil also reported its highest-ever H1 sales volume of 51.439 MMT, including record domestic petroleum-product sales.
Domestic market share increased to 42.7%, compared with 41.5% in H1 FY26.
Motor spirit (petrol) sales increased 9% to 8.946 MMT, while high-speed diesel sales rose 8% to 19.862 MMT. Fuel oil sales recorded even stronger growth of 27%.
H1 Profit Reaches ₹18,969 Crore
For the first half of FY2026-27, IndianOil reported standalone revenue from operations of ₹5,38,907 crore, up 28% from ₹4,21,600 crore in H1 FY26.
Standalone net profit increased to ₹18,969 crore, compared with ₹13,299 crore during the corresponding period last year.
Interestingly, the company’s Q2 profit alone exceeded its H1 cumulative profit because of the substantial loss reported during Q1.
What the Results Mean for India’s Energy Sector
IndianOil’s Q2 performance provides an important indication of the dynamics affecting India’s oil refining and marketing sector.
Higher refinery utilisation, stronger refining margins, growth in domestic fuel sales and improved petrochemical and gas margins supported the company’s recovery.
At the same time, the results demonstrate the sensitivity of public-sector oil companies to crude prices, government compensation, fuel pricing policies and inventory movements.
For investors and finance professionals, the distinction between operational profitability and compensation-related income will remain important when assessing the sustainability of IndianOil’s earnings.
Outlook
IndianOil enters the second half of FY27 with strong operational momentum, record first-half throughput and significantly improved profitability.
However, the company has cautioned that changing crude oil prices could affect future earnings through inventory losses. Geopolitical developments, refining margins and domestic fuel pricing will therefore remain key factors to watch.
With its extensive refining capacity, pipeline network, fuel retail presence and petrochemical and gas businesses, IndianOil continues to play a central role in India’s energy security.
The Worldonomics Times will continue tracking IndianOil and other major PSUs as their financial results, investments, operational performance and strategic decisions shape India’s energy and economic landscape.
