Indian Oil Corporation Reports Q2 FY27 Consolidated Net Profit of ₹22,503 Crore

State-run Indian Oil Corporation (IOCL) on Friday reported a consolidated net profit of approximately ₹22,503 crore for the second quarter of financial year 2027. The figure marks a significant recovery on a sequential basis, contrasting with a consolidated net loss of roughly ₹1,411 crore reported in the previous quarter.

India's largest oil marketing company stated that the profitability during the quarter was driven by a temporary decline in crude oil prices from mid-June to mid-August, alongside robust margins from petrochemicals and gas. These factors helped offset losses incurred from selling petrol, diesel, and liquefied petroleum gas below market rates.

IOCL's consolidated total income stood at around ₹2.69 lakh crore in Q2 FY27, compared to ₹2.82 lakh crore in Q1 FY27 and ₹2.07 lakh crore in Q2 FY26. Total expenses for the quarter were recorded at ₹2.41 lakh crore, down from ₹2.84 lakh crore in Q1 FY27 and up from ₹1.97 lakh crore in Q2 FY26.

Operational metrics for the first half of FY27 showed steady growth. Refineries crude throughput reached 37.273 million tonnes, representing a capacity utilization of 105.8 percent, which is a 3 percent improvement compared to 36.292 million tonnes in H1 FY26. IOCL did not report its gross refinery margins for Q2 FY27 or H1 FY27.

The company's cross-country pipelines achieved a combined throughput of 53.896 million tonnes in H1 FY27, marking a 7 percent increase from 50.343 million tonnes in the corresponding period of the previous year. Total sales volume for H1 rose by 2 percent to 51.439 million tonnes. Domestic market share increased by 1.2 percent to reach 42.7 percent in H1 FY27, with petrol and diesel sales registering growth of 9 percent and 8 percent, respectively.

In its regulatory filing on the BSE, IOCL reported that its under-recoveries from LPG stood at ₹32,505.69 crore as of September 30, 2026. The company also noted that due to the non-availability of Independent Directors on its board, the Audit Committee has been discontinued effective March 28, 2026.

Looking ahead, IOCL cautioned that profitability in upcoming quarters could face adverse impacts from inventory losses if crude oil prices fall further with the normalization of the situation in West Asia.

"Indian Oil Corporation's recent financial performance highlights how external commodity price cycles directly impact downstream petroleum companies. While lower crude prices provided strong sequential relief and boosted profitability this quarter, the company's reliance on regulated fuel pricing and exposure to inventory fluctuations remain key variables. Furthermore, corporate governance matters, such as the discontinuation of the audit committee due to board vacancies, require careful attention alongside financial metrics." — Dr. Shishir Gupta, Founder & CEO, StartupLanes