NEW DELHI — Indian Oil Corp. on Thursday reported that its fiscal third-quarter profit more than quadrupled, helped by weaker crude prices and improving refining economics. The state-run refiner and fuel retailer also benefited from firm domestic demand and government support tied to below-cost cooking gas sales, Feb. 5, 2026.
Indian Oil said standalone net profit rose to ₹12,125.86 crore for the quarter ended Dec. 31, up from ₹2,873.53 crore a year earlier, according to a Reuters report on the results. Revenue from operations increased about 7% to roughly ₹2.32 trillion, the company said.
Shares of Indian Oil traded higher after the announcement, reflecting investor focus on margin recovery across state-owned fuel retailers, according to Business Standard’s market update.
Indian Oil rides cheaper crude and stronger margins
Lower feedstock costs were a key tailwind. Brent crude slid more than 9% during the October-December period, a move that typically supports refiners by widening the spread between product prices and crude input costs, Reuters said.
For the first nine months of the fiscal year (April-December 2025), Indian Oil reported an average gross refining margin of $8.41 per barrel, up from $3.69 a year earlier. The company also said its “core” gross refining margin for the same period — which adjusts for inventory gains or losses — was $9.86 per barrel, based on figures cited in financial disclosures and media reports.
On a consolidated basis, Indian Oil posted a net profit of ₹13,006 crore for the quarter, with revenue of ₹2,36,257 crore, as reported in The Financial Express’ coverage.
Indian Oil demand support and LPG compensation add lift
Demand conditions in India improved into the quarter, with consumption hitting record levels in December. The government’s oil ministry data show total petroleum product consumption reached a historic high that month, detailed in the PPAC industry consumption report for December 2025.
Indian Oil also continued to receive budgetary support tied to subsidized household fuel. The company booked ₹2,414.34 crore in subsidy receipts during the quarter, and the government has approved a one-time compensation package for state fuel retailers to offset losses on selling LPG below market-linked costs, according to Mint’s write-up citing the exchange filing.
Looking ahead, Indian Oil is positioning for higher exports and a larger domestic footprint as new capacity comes online. The company expects diesel exports to rise sharply from 2027 as it expands refining capacity and adds retail outlets, Reuters reported from India Energy Week in a separate story on its expansion plans.
Indian Oil’s swing from past volatility underscores the cycle
The latest rebound follows years of sharp earnings swings tied to crude volatility, policy interventions and inventory effects. In early 2023, Indian Oil reported a steep year-on-year profit drop in the December quarter, highlighting how quickly margins can compress when costs rise and retail pricing lags, as noted in an Economic Times report from January 2023.
Policy has also shaped profitability. India introduced windfall levies and export restrictions in mid-2022 as global cracks surged, a shift that tightened the operating backdrop for fuel exporters, according to Reuters reporting from July 2022.
More recently, Indian Oil had already flagged margin momentum in the prior quarter as crude eased, reporting a jump in profit for the September 2025 quarter on higher refining margins, Reuters said in its October 2025 results coverage.
