Mumbai: Indian Oil Corporation Limited (IOCL) on Wednesday reported a sharp rise in its Q3 FY2026 standalone net profit, driven by a strong improvement in refining margins and government support on LPG under-recoveries. The Maharatna PSU posted a net profit of ₹12,126 crore, marking a 322% year-on-year increase compared to ₹2,874 crore in the same quarter last year.
The company’s Board of Directors approved the unaudited financial results for the quarter ended December 31, 2025, following a review by the Audit Committee.
Q3 FY2026 Financial Highlights (Standalone)
- Revenue from Operations: ₹2,31,769 crore
- Net Profit: ₹12,126 crore (up 322% YoY)
- Profit Before Tax (PBT): ₹15,992 crore (up 361% YoY)
- Earnings Per Share (EPS): ₹8.81 (basic and diluted)
The robust performance reflects improved operating conditions across refining and marketing operations.
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Strong Nine-Month Performance (April–December 2025)
For the first nine months of FY2026, IOCL reported substantial growth across key financial metrics:
- Revenue from Operations: ₹6,53,369 crore
- Net Profit: ₹25,425 crore (up 346% YoY)
- PBT: ₹33,462 crore (up 371% YoY)
- EPS: ₹18.46 (basic and diluted)
Refining Margins Drive Earnings Growth
A major contributor to the improved profitability was the sharp rise in Gross Refining Margin (GRM).
- Average GRM (Apr–Dec 2025): $8.41 per barrel
- GRM (Apr–Dec 2024): $3.69 per barrel
- Core Current-Price GRM: $9.86 per barrel
The higher margins significantly strengthened earnings from the petroleum products segment.
Operational Performance Remains Robust
During the nine-month period ended December 2025:
- Domestic product sales: 73.84 million metric tonnes (MMT)
- Refinery throughput: 55.72 MMT
- Pipeline throughput: 77.90 MMT
These metrics highlight strong operational efficiency across IOCL’s integrated infrastructure.
LPG Compensation Provides Additional Support
The company recognized ₹2,414.34 crore in Q3 FY26 as part of the government-approved ₹14,486 crore compensation for LPG under-recoveries. The compensation is being released in 12 monthly instalments starting November 2025, providing earnings stability to oil marketing companies.
Consolidated Results Reflect Group Strength
On a consolidated basis:
- Q3 Net Profit: ₹13,502 crore
- Profit attributable to equity holders: ₹13,007 crore
- Profit attributable to equity holders: ₹13,007 crore
- Nine-Month Net Profit: ₹28,501 crore
- Profit attributable to equity holders: ₹27,638 crore
- Profit attributable to equity holders: ₹27,638 crore
- Consolidated EPS (9M): ₹20.07
Segment-Wise Performance
The Petroleum Products segment emerged as the primary growth driver, contributing ₹16,836 crore in profit before tax and finance costs during Q3 FY26 (standalone). The Gas segment also delivered stable performance, while petrochemicals and other business activities added incremental support.
Healthy Balance Sheet and Financial Ratios
IOCL maintained a strong financial position during the quarter:
- Debt–Equity Ratio: 0.60
- Net Worth: ₹1,92,621 crore
- Interest Service Coverage Ratio: 9.63 times (Q3 standalone)
- Current Ratio: 0.68
About Indian Oil Corporation
Indian Oil Corporation Limited is India’s largest commercial oil company and a Maharatna PSU, operating across the entire hydrocarbon value chain—from refining and pipeline transportation to marketing of petroleum products, gas, and petrochemicals. With a vast nationwide network and a strong refining capacity, Indian Oil plays a critical role in ensuring India’s energy security.
