EL7.AI
StocksMedium•30 October 2026•
4 min read

Indian Oil’s Profit Hits 21,630 Crore Rupees, Lifting Indian Oil Companies’ Profits 68.3%

Key Facts

1Indian Oil’s standalone net profit was 21,630 crore rupees, compared with 7,610 crore rupees a year earlier.
2The three oil marketing companies’ combined standalone profits rose 68.3% to 30,106 crore rupees, from 17,884 crore rupees.
3HPCL’s profit fell to 3,483 crore rupees, compared with 3,830 crore rupees a year earlier.
4The accumulated domestic cooking gas under-recovery balance was 32,505.69 crore rupees on September 30, with compensation of 7,243.02 crore rupees recognized as revenue over six months.

Indian Oil posted a record standalone net profit of 21,630 crore rupees in the quarter ended September 30, 2026, compared with 7,610 crore rupees in the same period a year earlier, according to a report published by The New Indian Express on October 30. The newspaper said the result was the company’s highest on a quarterly basis and nearly three times its profit a year earlier. The surge also lifted the combined standalone post-tax profit of the three state-run oil marketing companies by 68.3% to 30,106 crore rupees, from 17,884 crore rupees in the corresponding period. The total was for the second quarter of the current financial year and included Indian Oil, HPCL and BPCL. While Indian Oil’s result drove the total higher, the other two companies’ profits declined year on year.

HPCL’s standalone profit was 3,483 crore rupees in the second quarter, compared with 3,830 crore rupees a year earlier, while BPCL’s profit fell 22.5% to 4,993 crore rupees from 6,443 crore rupees. The three companies’ combined profits therefore rose even as both HPCL and BPCL reported lower results than in the corresponding quarter. The comparison reflects standalone second-quarter results, not the companies’ consolidated figures. The numbers highlight the weight of Indian Oil’s 21,630 crore rupee result in the three companies’ total profit of 30,106 crore rupees. The report did not provide a separate explanation for the declines at HPCL and BPCL.

Indian Oil attributed its quarterly profitability, in an official statement, to a temporary decline in crude prices and strong petrochemical and gas margins. The New Indian Express said improved refining margins also supported the result, but reported that the company did not disclose its gross refining margin for the quarter ended in September. The report therefore contains no figure to measure the margin during the quarter or compare it with an earlier period. This operating picture adds petrochemical and gas margins to the impact of crude price movements cited in the company’s statement. Compensation for under-recovery on domestic cooking gas appears in the six-month figures, and the official statement does not list it among the factors to which it attributed quarterly profitability.

Business Standard data showed that the company recognized revenue of 7,243.02 crore rupees from government compensation for under-recovery on domestic cooking gas sales during the six months ended September 30, 2026. As of the same date, the cumulative net under-recovery balance stood at 32,505.69 crore rupees, despite the compensation being recorded as revenue in the first half. These figures distinguish the compensation recognized over the six-month period from the accumulated balance outstanding at the end of September. According to Reuters via MarketScreener, revenue from operations rose about 30% to 2.63 trillion rupees in the quarter ended in September, helped by government compensation of 72.43 billion rupees for cooking gas under-recoveries between April and September. The data show the role of compensation in revenue, while the cumulative under-recovery balance remained high at the end of the period.

Against the backdrop of the companies’ results, the average Brent crude price rose about 40% during the quarter from the same period a year earlier, amid the ongoing war in Iran and tensions linked to the Russia-Ukraine war, according to Reuters. The agency said higher oil prices put pressure on state-run fuel retailers, as the cost of supplying petrol and diesel exceeded the proceeds from their sales at fuel stations. Indian Oil’s total expenses also rose 23% to 2.39 trillion rupees, while raw-material expenses climbed about 35%, largely because of higher crude procurement costs. These figures place rising expenses alongside the growth in revenue from operations reported by Reuters, while the company attributed quarterly profitability to a temporary decline in crude prices and strong petrochemical and gas margins. The published figures relate to the quarter ended September 30 and provide no numerical forecast for profits in subsequent periods.