Indian Oil Corporation (IOC) reported a sharp rebound in earnings for the December quarter, posting a more than four-fold jump in profit as stronger refining margins and improved operating performance lifted results from a weak base last year.
The state-run oil marketing major reported a profit after tax of Rs 12,126 crore in Q3FY26, compared with Rs 2,874 crore in the year-ago quarter, translating into a year-on-year growth of about 322 per cent. Revenue from operations rose 7 per cent to Rs 2.31 lakh crore during the quarter, up from Rs 2.16 lakh crore in Q3FY25.
Weak base last year aided turnaround
The strong performance comes after a challenging December quarter last year, when earnings were hit by volatile crude prices, inventory losses and elevated operating costs. In contrast, the latest quarter benefited from relatively stable crude prices, improved refining economics and better throughput across key assets.
Petroleum products remain core revenue driver
IOC’s topline during the quarter continued to be driven by its core petroleum products business. Petroleum products revenue is at Rs 2.17 lakh crore, accounting for the bulk of overall revenue.
The petrochemicals segment reported revenue of Rs 6,936 crore, while the gas business contributed Rs 11,691 crore. Other business activities added Rs 431 crore to the topline.
Costs remain elevated, but margins improve
Total expenses for the quarter came in at Rs 2.16 lakh crore, marginally higher than Rs 2.15 lakh crore in the corresponding period last year, reflecting continued pressure from raw material costs and operating expenses. Despite this, profitability improved sharply due to better refining and marketing performance.
PBT jumps on operating leverage
Profit before tax surged to Rs 15,992 crore in Q3FY26, compared with Rs 3,470 crore a year earlier. The sharp jump in earnings underscores the operating leverage inherent in oil marketing companies when refining and marketing margins improve.
PSU oil companies see improving sentiment
The December quarter results mark a clear turnaround from last year’s muted profitability and come amid improving sentiment around PSU oil companies. Stable crude prices, better visibility on domestic fuel pricing and a recovery in global refining margins have helped support expectations for the sector in recent months.
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