Mumbai: Indian Oil's net profit jumped over fourfold in Q3 FY26 from Rupees 2,873 crore a year ago to Rupees 12,126 crore, backed by rising margins and lower inventory losses. Revenue from operations rose 7 percent YoY to Rupees 2,31,769 crore, up from Rupees 2,16,649 crore in Q3 FY25. Sequentially, revenue improved from Rupees 2,02,992 crore in Q2 FY26. Profit progression from Rupees 2,874 crore in Q1 and Rupees 7,610 crore in Q2 underscores a consistent rebound. Key drivers include robust GRMs and government compensation-linked LPG gains.
Sequential growth builds on operational discipline and margin gains
Compared to the previous quarter, revenue grew 14.2 percent while net profit expanded 59.3 percent. Total expenses rose to Rupees 2,16,999.92 crore from Rupees 1,94,449.60 crore in Q2, indicating a controlled 11.6 percent increase amid higher volumes. Despite elevated input costs, Indian Oil’s operating margin expanded to 7.23 percent in Q3, from 5.28 percent in Q2. EPS also improved to Rupees 8.81 from Rupees 5.53. There were no exceptional gains this quarter, unlike Q3 FY25, which included a Rupees 679.67 crore item.
Government support, refining margins fuel turnaround
According to the filing, government-approved LPG subsidy compensation contributed Rupees 2,414 crore across November and December, boosting operating revenue. GRMs rose to $8.41 per barrel for the April–December 2025 period, from $3.69 in the previous year. Other key drivers included stable petrochemical performance and improved pipeline throughput. No dividend or buyback was announced. EPS for the 9-month period stood at Rupees 18.46, more than four times the Rupees 4.14 reported for 9M FY25.
Nine-month earnings signal sustained recovery
For the nine months ended December 2025, Indian Oil’s net profit rose 346 percent to Rupees 25,424.91 crore from Rupees 5,696.72 crore in the same period last year. Revenue from operations grew 4.1 percent to Rupees 6,53,369 crore. The cumulative performance was supported by stronger refining throughput, improved product sales, and cost efficiencies. With Q3 contributing nearly half the 9M profit, Indian Oil enters the final quarter with momentum driven by policy tailwinds and margin expansion.
Disclaimer: This report is based on publicly disclosed financial results by Indian Oil. It is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell.
