Indian Oil Corporation Limited (IOCL) reported a strong financial performance for the second quarter of FY27, with consolidated net profit increasing 174.7% year-on-year to ₹22,502.62 crore, compared with ₹8,190.86 crore in the corresponding quarter of the previous financial year.
The company’s consolidated revenue from operations rose 29.8% to ₹2,68,039.38 crore in Q2 FY27, compared with ₹2,06,447.11 crore in Q2 FY26.
Consolidated profit before tax (PBT) increased to ₹28,190.53 crore from ₹12,103.71 crore in the year-ago quarter. The improvement in profitability was supported by stronger refining margins and the recognition of government compensation related to under-recoveries on domestic LPG sales.
The company had also reported a consolidated net loss of ₹1,241.09 crore in Q1 FY27, making the September quarter a significant turnaround from the previous quarter.
Indian Oil Q2 Results: Key Financial Highlights
Indian Oil reported substantial year-on-year growth in its consolidated financial performance during the September 2026 quarter.
Consolidated Performance:
- Revenue from Operations: ₹2,68,039.38 crore, up 29.8% year-on-year.
- Total Income: ₹2,68,712.94 crore.
- Profit Before Tax: ₹28,190.53 crore, compared with ₹12,103.71 crore in Q2 FY26.
- Net Profit: ₹22,502.62 crore, up 174.7% year-on-year.
- Earnings Per Share (EPS): ₹15.54, compared with ₹5.68 in Q2 FY26.
Standalone Performance:
- Revenue from Operations: ₹2,62,935.58 crore, up 29.5% year-on-year.
- Profit Before Tax: ₹26,616.62 crore, compared with ₹10,065.57 crore in Q2 FY26.
- Net Profit: ₹21,630.03 crore, up 184.2% year-on-year.
- Earnings Per Share (EPS): ₹15.71, compared with ₹5.53 in the corresponding quarter last year.
Refining Margins Support Indian Oil’s Profit Growth
Improved refining margins played an important role in Indian Oil’s stronger quarterly profitability.
The company’s petroleum products segment reported revenue of ₹2,45,995.64 crore during Q2 FY27. Segment profit before tax stood at ₹27,626.82 crore, compared with a loss of ₹1,705.02 crore in the previous quarter.
The improvement in refining economics helped offset pressure arising from marketing losses on the sale of petrol and diesel, as retail fuel prices remained unchanged during the period despite movements in crude oil prices.
Government Compensation Supports LPG Business
Government compensation related to under-recoveries on domestic LPG sales also contributed to the company’s reported revenue.
Indian Oil recognised ₹7,243.02 crore as revenue from operations during H1 FY27 towards government-approved compensation for domestic LPG under-recoveries.
However, the company reported a cumulative net negative LPG buffer of ₹32,505.69 crore as of September 30, 2026. This represents an important factor to monitor while assessing the sustainability of its earnings.
Indian Oil’s Fuel Sales and Refinery Operations
Indian Oil recorded growth in domestic fuel sales during the September quarter.
Domestic fuel sales increased 4.8% year-on-year to 23.9 million tonnes. Meanwhile, exports declined 11.3% compared with the corresponding quarter last year.
For the first half of FY27, refinery crude throughput stood at 37.273 million tonnes, compared with 36.292 million tonnes in H1 FY26. Refinery capacity utilisation reached 105.8%.
The company’s cross-country pipelines also recorded a combined throughput of 53.896 million tonnes during H1 FY27, registering growth of approximately 7% year-on-year.
Indian Oil H1 FY27 Financial Performance
For the first half of FY27, Indian Oil reported continued growth in its consolidated financial performance.
- Revenue from Operations: ₹5,49,972.45 crore, up 28.4% year-on-year.
- Total Income: ₹5,51,091.96 crore.
- Profit Before Tax: ₹27,257.94 crore, compared with ₹19,854.19 crore in H1 FY26.
- Net Profit: ₹21,361.53 crore, up 42.4% year-on-year.
- Earnings Per Share (EPS): ₹14.36, compared with ₹10.62 in H1 FY26.
The company’s first-half results reflect the improvement in profitability during the September quarter, following the loss recorded in Q1 FY27.
Conclusion
Indian Oil Corporation delivered a strong Q2 FY27 performance, with consolidated net profit rising 174.7% year-on-year to ₹22,503 crore. Higher refining profitability and the recognition of government compensation for LPG under-recoveries supported the improvement in earnings.
However, the company’s cumulative negative LPG buffer and the possibility of changes in crude oil prices remain important factors for its future financial performance. Going forward, refining margins, fuel marketing profitability, crude oil prices and government compensation will remain key factors to watch.
Source: Indian Oil Corporation’s official unaudited standalone and consolidated financial results for Q2 and H1 FY27, approved by the Board on October 30, 2026, and company disclosures.
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