EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) is important because it helps investors understand how well a company’s core business is performing, without the effects of financing decisions, tax structures, or accounting policies.
It focuses purely on operating profitability. For example, two companies in the same industry may have very different debt levels. Interest costs can impact net profit, but EBITDA allows for a cleaner comparison of operating efficiency.
Here are a few stocks from the largecap space which reported strong EBITDA growth in Q3 FY26.
#1 Indian Oil
First on our list is the stock of Indian Oil Corporation (IOC).
IOC is India’s largest integrated oil and petrochemical company. It’s a Maharatna Public Sector Undertaking (PSU) under the Ministry of Petroleum and Natural Gas.
The company reported a solid 200% EBITDA growth in Q3 FY26.
Q3 FY26 Consolidated Financial Comparison
| Rs m | Q3 FY26 | Q3 FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | 2,362,570 | 2,19,5220 | +7.6% |
| EBITDA | 227,450 | Rs 75,700 | +200.3% |
| Net Profit | 130,070 | Rs 21,150 | +515% |
The explosive growth in EBITDA was not just about selling more fuel, but about much better profitability per barrel.
The key drivers were:
- Surge in Refining Margins (GRM): This was the single biggest factor. The Gross Refining Margin (the difference between the cost of crude oil and the price of finished products) skyrocketed to US$ 12.22 per barrel, up from just US$ 3.69 in the same quarter last year.
- Lower Input Costs: A decline in global Brent crude prices helped lower raw material costs.
- LPG Under-Recovery Compensation: The Indian government approved a compensation package for losses incurred on domestic LPG sales.
- Operational Efficiency: Refinery throughput (the amount of crude processed) rose 7.3% YoY to 19.43 MMT, while pipeline throughput increased 14.4%. High capacity utilisation (105-109%) allowed for better cost absorption.
- Robust Domestic Demand: Domestic sales grew 5% YoY, ensuring the increased production was met by healthy consumption in the Indian market.
#2 Muthoot Finance
Next on the list is Muthoot Finance.
Muthoot Finance Ltd is India’s largest gold financing company and a leading Non-Banking Financial Company (NBFC). Known for its gold loans, it has evolved into a diversified financial firm.
Muthoot Finance delivered a strong performance in Q3 FY26 (December 2025), with its EBITDA growth of 78% driven by an expansion in its gold loan portfolio and higher gold prices.
Muthoot Finance: Q3 FY26 Comparison
| Rs m | Q3 FY26 | Q3 FY25 | YoY Change | |
|---|---|---|---|---|
| Total Income | 72,690 | 44,320 | +64% | |
| EBITDA | 67,300 m | 37,850 | +78% | |
| Net Profit | 26,560 m | Rs 13,630 | +95% | |
Why did the EBITDA of Muthoot Finance increase?
The nearly 78% surge in EBITDA was a result of aggressive lending and favourable market conditions for gold.
Here’s the breakdown:
- Record Gold Loan Growth: The core gold loan portfolio in Q3 FY26 grew 50% YoY, reaching roughly Rs 1.40 tn. A larger book of loans generates higher interest income, which is the primary driver of EBITDA for a lender.
- Rising Gold Prices: As gold prices increased during the quarter, the value of the collateral (the gold held by the company) increased. This allowed Muthoot Finance to lend higher amounts to existing and new customers (higher LTV or loan-to-value), significantly boosting disbursement volumes.
#3 Bharat Petroleum Corporation (BPCL)
Next on our list is Bharat Petroleum.
The company is a major Indian public sector oil and gas company headquartered in Mumbai, India.
BPCL, similar to Indian Oil, delivered a strong Q3 FY26 with a massive jump in its operational profitability. The company reported an expansion in its EBITDA margins to 55%, due to a sweet spot in refining economics.
BPCL: Q3 FY26 Consolidated Comparison
| Rs m | Q3 FY26 | Q3 FY25 | YoY Change |
|---|---|---|---|
| Revenue | 1,366,531 | 1,275,506 | +7.1% |
| EBITDA | Rs 123,730 m | Rs 80,040 m | +54.6% |
| Net Profit | Rs 71,880 m | Rs 38,060 m | +88.9% |
Why did the EBITDA of BPCL rise?
- Refining Margins: The Gross Refining Margin (GRM) of BPCL hit an eight-quarter high at US$ 13.25 per barrel. This was significantly higher than the US$ 5.6 reported last year. The Bina Refinery was a standout performer, clocking a GRM of US$ 18.17/bbl.
- Higher Throughput: The company’s refineries operated at over 119% capacity utilisation, processing 10.51 MMT of crude. This high volume allowed BPCL to spread fixed costs more efficiently, boosting the margin per barrel.
- LPG Compensation: Similar to IOC, BPCL benefited from the government’s compensation for LPG under-recoveries.
- Strong Domestic Sales: Domestic marketing volumes grew 4.76% YoY, with petrol (MS) and aviation fuel (ATF) seeing robust demand during the festive and travel season.
Should you consider companies with strong EBITDA?
Companies with strong EBITDA signal robust operational profitability and cash generation potential. However, it must be used alongside other metrics.
Always pair with EBITDA with return ratios, free cash flow, and debt levels for a balanced analysis.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy investing.
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