Indian Oil Reports 4,128% Surge in Q2 FY26 Profit to ₹7,610 Crore, Revenue Crosses ₹2 Lakh Crore
New Delhi, October 27: The state-run Indian Oil Corporation (IOC) has reported an exceptional performance for the second quarter of the financial year 2025–26 (Q2 FY26), with its consolidated net profit surging 4,128% year-on-year to ₹7,610.5 crore, compared to just ₹180 crore in the same quarter last fiscal.
According to IOC’s stock exchange filing on Monday, the oil major’s strong quarterly performance was backed by improved refining margins, steady domestic fuel demand, and reduced losses on LPG sales.
Revenue Crosses ₹2 Lakh Crore Mark
IOC’s revenue from operations rose 4% YoY to ₹2.03 lakh crore in Q2 FY26, supported by consistent sales volumes and robust demand recovery in the transportation and industrial sectors.
On a sequential basis, the company’s profit increased 33.8%, up from ₹5,689 crore in Q1 FY26, marking another solid quarter of earnings growth.
Experts attributed the results to “higher domestic retail sales, improved margins, and reduced under-recoveries on LPG”, noting that the low base effect from last year also amplified the year-on-year jump.
Stock Gains as Investors Cheer Strong Results
Following the announcement, IOC shares rose 3.23% to close at ₹155.20 on the Bombay Stock Exchange (BSE), near the day’s high of ₹155.35.
The stock had already gained nearly 3% intraday ahead of the earnings release, touching a high of ₹154.45.
Over the past six months, IOC has seen a 13.23% rise, while the year-to-date (YTD) performance stands at 11.67%, reflecting sustained investor confidence. The scrip remains close to its 52-week high of ₹157.20, hit on October 9.
As of October 27, IOC’s market capitalization stood at ₹2,17,777.74 crore, reinforcing its position among India’s top energy companies.
Analysts See Positive Outlook
Market analysts believe the strong results signal continued profitability for the Maharatna PSU in the upcoming quarters, particularly as domestic fuel demand stays resilient and global crude prices stabilize.
“IOC’s Q2 numbers are a reflection of operational efficiency, stronger refining margins, and consistent sales growth across segments. The company’s performance aligns well with the overall recovery in India’s energy consumption,” said a Mumbai-based energy market expert.
Context: From Volatile Margins to Strong Recovery
In Q2 FY25, IOC’s profitability was sharply hit by an exceptional item, which had dragged down its net profit to just ₹180 crore. However, FY26 has seen a clear rebound, aided by policy stability, lower under-recoveries, and strategic cost management.
The PSU’s improved performance also comes amid a broader upswing in India’s energy sector, with domestic consumption of petrol, diesel, and jet fuel continuing to rise amid robust economic activity.
Outlook Ahead
Industry observers expect IOC to maintain its growth momentum in the second half of FY26, supported by:
- Strong retail fuel demand post-festive season,
- Stable refining margins, and
- Potential moderation in crude oil volatility.
With upcoming government initiatives on green hydrogen, biofuels, and refinery modernization, IOC is also expected to continue its transition toward cleaner energy, positioning itself as a key player in India’s net-zero roadmap.