Indian Oil Corporation reported a 515 per cent YoY profit growth in the third quarter of FY26, driven by higher margins. The state-owned oil company posted a consolidated net profit of Rs 13,006 crore in Q3 FY26, compared to a consolidated profit of Rs 2,115 crore in Q3 FY25.
Further, Indian Oil reported a 7.6 per cent YoY revenue growth in the quarter. The company posted a consolidated revenue of Rs 2,36,257 crore in Q3 FY26. Its consolidated revenue from operations was at Rs 2,19,522 crore in the corresponding quarter of the previous fiscal year.
The company’s operating margin jumped to 7.94 per cent during the December quarter of FY26, up from 1.6 per cent in the same quarter of last fiscal year. Its net profit margin stood at 5.72 per cent.
Indian Oil refining margin jumps
Indian Oil stated that its Average Gross Refining Margin (GRM) for the period April – December 2025 stood at $8.41 per bbl. The company’s Average Gross Refining Margin during the same period last year was $3.69 per bbl.
“The core GRM or the current price GRM for the period April – December 2025, after offsetting inventory loss/ gain comes to $9.86 per bbl.” Indian Oil said.
Global oil price factor
Global Brent crude oil prices – used by refiners as a raw material – dropped by more than 9 per cent during the October-December quarter, helping push margins.
Fuel consumption in India, the world’s third-largest consumer and importer of oil, hit a record high in December, after hitting a six-month peak in November.
Fuel consumption rose 5.5 per cent and 5.3 per cent year-on-year in November and December, respectively, after a 0.4 per cent drop in October, according to data from the Petroleum Planning and Analysis Cell (PPAC).