Indian state-run oil refiners post 30,106 crore rupees in second-quarter profit
Key Facts
Indian state-run oil companies Indian Oil, Bharat Petroleum and Hindustan Petroleum reported combined standalone net profit of 30,106 crore rupees in the July–September 2026 quarter, up 68.3% from the same period a year earlier, Business Standard reported, citing Press Trust of India. That marked a sharp turnaround from the previous quarter, when the companies recorded a combined loss of about 18,150 crore rupees in April–June 2026. But the annual increase in the total did not reflect equal performance across the three companies; most of the profit came from Indian Oil. The company’s profit rose to a quarterly record, while Bharat Petroleum and Hindustan Petroleum reported lower earnings year on year. The results show a strong overall recovery, alongside continued differences in how refining and marketing conditions affected the companies.
Indian Oil’s standalone net profit was 21,630 crore rupees in the quarter, compared with 7,610 crore rupees a year earlier, its highest quarterly standalone profit on record. By contrast, Bharat Petroleum’s profit fell 22.5% year on year, while Hindustan Petroleum’s declined 9%. The divergence shows that the jump in combined profit depended heavily on Indian Oil’s result, rather than on uniform improvement across the three companies. Hindustan Petroleum’s annual performance was weaker despite an increase in its gross refining margin. The margin was 32.15 dollars per barrel in the second quarter of fiscal 2026-27, before export duty, compared with 8.80 dollars in the corresponding period of the previous fiscal year. Even so, its standalone net profit fell to 3,483 crore rupees from 3,830 crore rupees.
Coverage of the results attributed part of the profit improvement to a temporary decline in crude oil prices between mid-June and mid-August, which lowered input costs and contributed to inventory gains. Contributions from petrochemicals and gas also supported Indian Oil’s performance. But crude prices moved in the opposite direction during the September quarter: Reuters said average global Brent prices rose about 40% during the quarter amid supply disruptions linked to Middle East tensions. Bharat Petroleum’s figures show the impact of cost pressures alongside higher revenue: operating revenue increased 29.8% to 1.58 trillion rupees, while total expenses rose 32.8% to 1.52 trillion rupees. The cost of raw materials consumed also increased 44.2%, Reuters reported.
Reuters said Bharat Petroleum’s revenue included government compensation of 37.97 billion rupees for domestic cooking gas under-recoveries during April–September. Across the three companies, accumulated fuel under-recoveries stood at 67,900 crore rupees at the end of September, amid delays in government support, Business Standard reported. Petrol and diesel prices had remained frozen since May, and domestic cooking gas prices had not changed since March. This places the quarter’s profits alongside ongoing marketing obligations, as the figures indicate that improved refining results did not eliminate pressures linked to domestic fuel prices and cost recovery. That context remains relevant when comparing the companies’ quarterly profits, given differences in their revenue, costs and business contributions.
The results were released ahead of India’s next official inflation data publication. The Ministry of Statistics and Programme Implementation said the October 2026 consumer price index data would be released on 12 November 2026, or on the next working day if the date fell on a holiday. The date gives investors a fresh reading on inflation after a quarter marked by significant crude price movements and pressure on refining and marketing costs. The ministry did not provide an expectation for the October reading in its release-date statement. The upcoming release therefore offers a date to track price data, while the oil companies’ results so far show diverging performance, with Indian Oil’s profit surging and Bharat Petroleum and Hindustan Petroleum reporting declines.