New Delhi: IndianOil Corporation Limited (IOCL) reported a robust performance in the first quarter of FY 2025–26, with record-high sales volumes and a year-on-year (YoY) net profit surge of over 115%, even as sequential profits saw a decline.
Highest-Ever Quarterly Sales Volume Recorded
IndianOil clocked its highest-ever quarterly sales volume at 26.328 million metric tonnes (MMT) during Q1 FY26, marking a 4% increase over 25.252 MMT in the same quarter last year. The company’s refinery throughput stood at 18.683 MMT, with 107% capacity utilisation, higher than the 18.168 MMT throughput recorded in Q1 FY25.
IndianOil’s cross-country pipeline throughput also improved by 2%, rising to 26.256 MMT from 25.811 MMT in the year-ago period.
Revenue and Profit Surge Year-on-Year
Revenue from operations rose to ₹2,18,608 crore, up from ₹2,15,989 crore in Q1 FY25.
Net profit surged 115% YoY to ₹5,689 crore, from ₹2,643 crore in Q1 last year.
The sharp YoY increase in profitability was driven by stronger refining and marketing margins. However, the company also faced inventory losses, which partially offset its gains — a contrast to the inventory gains enjoyed during Q1 FY25.
Sequential Performance: Profit Down 21.7%
Despite the YoY growth, IndianOil’s net profit of ₹5,689 crore was down 21.7% quarter-on-quarter, compared to ₹7,269 crore in the previous quarter (Q4 FY25). The sequential decline was largely attributed to lower gross refining margins (GRMs) and adverse inventory valuations.
Gross Refining Margins: Mixed Picture
The company reported a GRM of $2.15 per barrel, down significantly from $6.39 per barrel in Q1 FY25. However, normalised GRMs — which exclude inventory gains or losses — improved sharply to $6.91 per barrel, from $2.84 per barrel a year ago.
Outlook
IndianOil’s strong operational performance and improved throughput suggest continued resilience amid global volatility in crude and product prices. However, margin pressures and inventory fluctuations are expected to remain key factors influencing upcoming quarters.
About IOCL
Indian Oil Corporation Limited (IOCL) is India’s largest state-owned oil and gas company, a Maharatna PSU. It’s a leading energy company with diverse interests spanning the entire hydrocarbon value chain, from refining and transportation to marketing and exploration. IOCL is ranked among the top global energy companies and is a key player in India’s energy sector.
