Indian Oil Corporation Ltd (IOCL), India’s largest state-run refiner, has posted a robust turnaround in its second-quarter financial results for FY26 on October 27, 2025. The company reported a consolidated net profit of ₹7,817.55 crore for the July–September period, marking a remarkable recovery from a net loss of ₹169.58 crore in the same quarter last year. The improvement was supported by stronger refining margins and stable revenue growth.
Revenue Growth and Profit Surge
For the second quarter of FY26, IOCL’s total income rose nearly 4% year-on-year to ₹2.07 lakh crore, compared with ₹1.99 lakh crore in the same period last year. Revenue from operations stood at ₹2.06 lakh crore, reflecting a 3.9% year-on-year increase from ₹1.98 lakh crore.
On a sequential basis, the company’s net profit rose 14.7% from ₹6,813.71 crore reported in the April–June quarter of FY26, highlighting consistent operational performance and improved efficiency.
Refining Margins and Operational Efficiency
The company’s profitability was driven by higher gross refining margins (GRMs) amid softer international crude oil prices. IOCL earned an impressive $19.6 on every barrel of crude oil processed in Q2 FY26, a sharp improvement compared to $2.15 in Q1 FY26 and $1.59 in Q2 FY25.
For the first half of FY26, the average GRM rose to $6.32 per barrel from $4.08 in the previous year. The September quarter margin stood at $10.6 per barrel, reflecting the company’s effective refining operations and favourable pricing environment.
The refiner processed 17.609 million metric tonnes (MMT) of crude oil during the quarter, up from 16.738 MMT a year earlier, underlining improved throughput and capacity utilisation across its refining network.
Cost Management and Expense Control
Total expenses during the quarter came in at ₹1.96 trillion, lower than ₹2.01 trillion in the same period last year and ₹2.14 trillion in the preceding quarter. This reduction in costs contributed to higher operating margins and reinforced IOCL’s strategic focus on efficiency.
Market Performance and Investor Sentiment
Ahead of its quarterly results announcement, Indian Oil’s stock closed 3% higher at ₹155.15 on the BSE. The stock has advanced 13% so far in 2025 and has delivered strong multi-year returns — 127% over the past three years and nearly 200% in the past five years.
From a technical perspective, the shares are trading above all eight key simple moving averages (SMAs), spanning the 5-day to 200-day periods, indicating a sustained bullish trend. The Relative Strength Index (RSI) stands at 49.6, suggesting the stock remains in a balanced zone, while the Moving Average Convergence Divergence (MACD) remains positive at 1.6, signalling underlying momentum.
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Conclusion
Indian Oil Corporation’s Q2 FY26 results mark a strong recovery, underscored by improved refining margins, disciplined expense management, and steady revenue growth. The company’s swing back to profitability reinforces its resilience amid fluctuating global crude prices and evolving energy market dynamics.
With operational efficiency and strategic focus, IOCL continues to strengthen its position as a leading player in India’s energy sector.
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