Indian Oil Corporation Limited: Q3 FY26 Profit Soars 515% on Higher Refining Margins; Revenue Tops ₹2.36 Lakh Crore
Standalone profit jumps QoQ to ₹12,126 crore as GRM improves to $8.41 per barrel; domestic sales and refinery throughput post double-digit growth
Indian Oil Corporation Limited (IOCL) delivered a blockbuster performance in the third quarter of FY26, reporting a staggering 515 per cent year-on-year jump in net profit, driven by sharply higher refining margins and robust domestic demand. Revenue from operations climbed 7.6 per cent YoY to ₹2,36,257 crore, aided by softer crude prices and improved operational efficiency.
On a quarter-on-quarter basis, standalone net profit surged 59.34 per cent to ₹12,125.86 crore, while revenue rose 14.16 per cent to ₹2,31,769.04 crore. EBITDA jumped 42.69 per cent to ₹20,800 crore, reflecting strong margin expansion. Basic earnings per share increased to ₹8.81, up from ₹5.53 in Q2FY26.
Operational metrics also remained strong. Domestic product sales grew 13.85 per cent to 26.015 million metric tonnes (MMT), underscoring sustained demand across retail and industrial segments. Refinery throughput rose 10.32 per cent to 19.427 MMT, while pipeline throughput climbed 14.40 per cent to 27.557 MMT, highlighting improved logistics performance.
Petroleum products continued to dominate revenues at ₹2,17,890 crore, followed by gas (₹11,690.82 crore) and petrochemicals (₹6,935.77 crore). Although export sales declined 17.15 per cent QoQ to 1.169 MMT, higher domestic volumes more than offset the drop.
Indian Oil’s operating margin expanded sharply to 7.94 per cent, compared with just 1.6 per cent in the corresponding quarter last year, while net profit margin stood at 5.72 per cent.
The PSU oil major said its Average Gross Refining Margin (GRM) for April–December 2025 improved to $8.41 per barrel, more than double last year’s $3.69 per barrel. The core GRM, adjusted for inventory gains or losses, stood even higher at $9.86 per barrel.
The margin boost was supported by a over 9 per cent decline in Brent crude prices during the October–December quarter, lowering input costs for refiners.
Meanwhile, India’s fuel demand remained resilient. Fuel consumption touched a record high in December, following a six-month peak in November. Consumption rose 5.5 per cent year-on-year in November and 5.3 per cent in December, after a marginal dip in October, according to PPAC data.
The strong quarterly performance reinforces Indian Oil’s leadership among India’s oil marketing companies and strengthens its outlook amid evolving energy market dynamics.
