October 29, 2025

Get ready for a blockbuster comeback story! Indian Oil Corporation Ltd (IOC) stunned the markets by posting a massive net profit of Rs 7,817.55 crore for the September quarter (Q2FY26). This fresh money in the bank is a huge turnaround from the Rs 169.58 crore loss the company suffered last year during the same period. What’s behind this big leap? Better margins and rising revenues! On top of that, IOC’s net profit jumped 14.7% compared to Rs 6,813.71 crore in the previous quarter (Q1FY26). The company’s revenue from operations hit a whopping Rs 2.06 lakh crore, marking a neat 3.9% gain from last year’s Rs 1.98 lakh crore. Total income also climbed nearly 4% to Rs 2.07 lakh crore. IOC’s marketing volumes grew by a strong 5% year-on-year—better than the industry growth of just 2%. This success is fueled by sharper refining margins and smart operational moves. But there's a spicy twist! IOC reduced its share of Russian crude oil from 24% in the last quarter to 19%. Despite this, the company managed to stay steady thanks to flexible sourcing. While the LPG margins took a hit with a US$1.5 per barrel loss, IOC’s overall integrated margin hit US$12.6 per barrel. That’s a two-year high, according to global brokerage Morgan Stanley. Morgan Stanley also revealed IOC’s core profit after tax stands at about Rs 9,700 crore after adjusting inventory gains and foreign exchange losses. The giant brokerage kept its target price for IOC shares at Rs 168 and praised the company’s strong earnings outlook. "IOC’s earnings are supported by steady refining cracks and minimal price intervention, assuming Brent crude remains in the US$65–70 range," they said. But they still prefer competitors like HPCL, Reliance, and BPCL over IOC. When it comes to money flow, free cash stayed around zero because IOC spent Rs 180 crore on capital expenditure. Net debt remains high at around US$10 billion but analysts seem optimistic. With IOC’s sharp recovery, will this fuel new market excitement? Investors are watching closely! This big profit flip shows Indian Oil is back in the game with power. And with smart moves in crude sourcing and strong marketing, it’s proving tough to beat. Whether this bright streak continues will be the big buzz going forward.

Read More at Economictimes →

Tags: Indian oil corporation, Q2fy26 profit, Oil marketing, Morgan stanley, Refining margins, Russian crude,