Indian Oil Q2 FY26 Results: Net Profit Jumps to ₹8,191 Crore from Loss Last Year; Revenue Rises 4%

Indian Oil Corporation Limited (IOCL), the country’s largest oil refiner and fuel retailer, has reported a strong financial performance for the quarter ended September 30, 2025 (Q2 FY26), marking a sharp turnaround from the loss recorded in the same period last year.

The state-run energy major posted a net profit of ₹8,190.86 crore in Q2 FY26, compared to a net loss of ₹448.78 crore in Q2 FY25, driven by improved refining margins and cost control measures.

Revenue and Income

IOC’s revenue from operations stood at ₹2,06,447.11 crore, up 4% year-on-year from ₹1,98,615.80 crore in the corresponding quarter of the previous year. However, sequentially, the revenue slipped 6% from ₹2,21,849.02 crore in Q1 FY26, reflecting softer crude prices and lower product realizations.

The company’s total income for the quarter was ₹2,07,091.44 crore, up 3.9% from ₹1,99,339.05 crore in Q2 FY25, but lower than ₹2,22,432.27 crore recorded in the June quarter.

Expenses and Margins

Total expenses for the quarter came in at ₹1,96,699.02 crore, slightly lower than ₹2,01,760.21 crore in the year-ago period. The cost of materials consumed declined 4.1% year-on-year to ₹1,03,246.05 crore from ₹1,07,661.26 crore, supported by easing input costs.

Finance costs fell modestly to ₹2,269.69 crore from ₹2,374.00 crore, while employee benefits expense rose 10.7% year-on-year to ₹2,902.71 crore.

Profit Before Tax and Half-Yearly Performance

Indian Oil reported a profit before tax (PBT) of ₹11,103.71 crore for Q2 FY26, compared to a loss of ₹588.71 crore in the same period last year.

For the first half of FY26 (April–September 2025), the company’s net profit surged 336% year-on-year to ₹14,631.62 crore, against ₹3,358.91 crore in H1 FY25, showcasing a robust recovery in operational performance and profitability.