| Market Cap | ₹1,81,627 CrLarge Cap |
|---|---|
| PE Ratio | 5.4xSector PE: 17.8x |
| RSI | 47.67Neutral Zone |
| 1-Year Price | -21.14%Change |
| Metric | Q2-27 | Q1-27 | Q2-26 |
|---|---|---|---|
| Revenue from Operations | 268,039 | 281,933 | 206,447 |
| Other Income | 674 | 446 | 644 |
| Total Income | 268,713 | 282,379 | 207,091 |
| Profit Before Tax | 28,190 | -933 | 11,104 |
| Net Profit | 22,503 | -1,141 | 8,191 |
| Operating Margin | 10.5% | -0.3% | 5.4% |
| Net Profit QoQ | +2,072.0% | ||
| Net Profit YoY | +174.7% | ||
| Adj. Profit QoQ | +1,394.5% | ||
| Adj. Profit YoY | +175.6% | ||
Key highlights
- Net profit surged 174.7% YoY to ₹22,503 crore, rebounding from a loss in the previous quarter
- Revenue from operations reached ₹268,039 crore for the quarter ended September 2026
- Recognized ₹7,243.02 crore as revenue from MoPNG as compensation for LPG under-recoveries
- Operating margin expanded to 10.5%, a sharp increase from -0.3% in Q1 FY27
- Domestic product sales volumes grew to 23.977 MMT from 22.851 MMT in the year-ago period
- Refineries throughput stood at 18.108 MMT with pipelines throughput at 25.348 MMT
Profitability Rebounds on Margin Expansion
Indian Oil Corporation (IOC) reported a robust financial turnaround for the second quarter ending September 2026, with consolidated net profit reaching ₹22,503 crore. This represents a 174.7% increase compared to the ₹8,191 crore recorded in the same period last year and a sharp recovery from the net loss of ₹1,141 crore posted in the June 2026 quarter. Total income for the period stood at ₹268,713 crore.
The operating margin significantly improved to 10.5%, supported by the accounting of fuel under-recoveries and steady demand in the petroleum segment, which remains the company's core revenue driver.
LPG Compensation and Segment Performance
A significant boost to the quarterly results came from the recognition of ₹7,243.02 crore as revenue from operations. This amount was part of a government-approved compensation package from the Ministry of Petroleum and Natural Gas (MoPNG) to address under-recoveries in domestic LPG sales. On a consolidated basis, the petroleum products segment contributed a result of ₹27,626.82 crore, pivoting from a loss in the preceding quarter.
The gas segment also showed positive momentum, contributing ₹1,237.67 crore. Despite the profit surge, total revenue from operations saw a sequential decline from ₹281,933 crore in Q1 FY27, reflecting market price fluctuations.
Operational and Governance Status
- Domestic product sales volumes rose to 23.977 MMT, up from 22.851 MMT YoY
- Standalone refinery throughput was recorded at 18.108 MMT for the quarter
- The company reported no defaults on outstanding loans or unlisted debt securities
- Debt-equity ratio remains stable at 0.53 on a consolidated basis
- Audit Committee remains discontinued since March 2026 due to lack of Independent Directors
Expansion and Renewable Targets
Indian Oil is progressing with its ₹75,000 crore expansion program, aimed at increasing its total refining capacity from 80.75 MMTPA to 98.6 MMTPA by December 2026. This growth is being driven by critical expansions at the Panipat, Gujarat, and Barauni refineries. Parallelly, the company is advancing its green energy transition through its subsidiary, Terra Clean Ltd, with a target to achieve 18 GW of renewable power capacity in the next three to four years and 31 GW by 2030.
Management continues to focus on these infrastructure milestones to balance traditional refining with clean energy goals.
LPG Under-recovery Buffer
In accordance with the letters, instalment for the period from April 2026 to September 2026 aggregating to ₹7,243.02 crores have been recognized as Revenue from Operations in the books of account and the cumulative net negative buffer has been reduced to that extent.
| Date | Announcement | Amount |
|---|---|---|
| 31 Jul 2026 | Q1 FY27 Standalone Net LossSource: sahi.com | ₹-2,661.37 Cr |
| 18 May 2026 | Q4 FY26 Audited Standalone Net ProfitSource: psuconnect.in | ₹11,377.51 Cr |
| 05 Feb 2026 | Q3 FY26 Standalone Net ProfitSource: psuwatch.com | ₹12,125.86 Cr |
| 27 Oct 2025 | Q2 FY26 Standalone Net ProfitSource: livemint.com | ₹7,610.45 Cr |
| 14 Aug 2025 | Q1 FY26 Standalone Net ProfitSource: quartr.com | ₹5,689.00 Cr |
| 30 Apr 2025 | Q4 FY25 Audited Standalone Net ProfitSource: psuwatch.com | ₹7,264.85 Cr |
What to watch next
- Earnings conference call scheduled for October 31, 2026, at 11:30 a.m. IST
- Targeted completion of the ₹75,000 crore refining expansion by December 2026
- Reconstitution of the Audit Committee and Board committees pending appointment of Independent Directors
- Next quarterly results for Q3 FY27 expected in January 2027
“The Ministry of Petroleum and Natural Gas (MoPNG), vide letters dated 3rd and 24th October 2025, has conveyed Government's approval for compensation of ₹14,486 crores to the Company, towards under-recoveries incurred on sale of domestic LPG up to 31.03.2025 and likely to be incurred up to 31.03.2026.”
| Share price | ₹128.62 |
|---|---|
| Market capitalisation | ₹1.82L Cr |
| Revenue (annual) | ₹7.84L Cr |
| Net profit (annual) | ₹42,096.26 Cr |
| Revenue (latest quarter) | ₹2.66L Cr+27.90% vs previous quarter |
| Net profit (latest quarter) | -₹1,630.74 Cr-111.28% vs previous quarter |
| P/E (TTM) | 5.4×Sector 17.84× |
| Promoter holding | 51.5%0.00% QoQ |
| FII holding | 8.61%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Indian Oil Corporation Limited announcing the unaudited standalone and consolidated financial results for the quarter ended September 30, 2026. Market figures from a third-party data provider.
