Indian Oil (IOC) Q2 25/26 earnings summary

Executive summary

• Q2 profit after tax was INR 7,610 crore, up from INR 5,689 crore in Q1; H1 profit after tax reached INR 13,299 crore, significantly higher than the previous year.

• EBITDA for Q2 was INR 16,106 crore, up from INR 13,220 crore in Q1.

• Standalone and consolidated unaudited financial results for the quarter and half year ended 30th September 2025 were approved by the Board on 27th October 2025.

• The company received approval for INR 14,486 crore compensation for LPG under-recoveries, to be recognized as revenue in 12 monthly installments starting November 2025.

• Project Sprint, a cost and capex optimization initiative, is underway with a target to reduce costs by 20% of budgeted numbers over three years.

Financial highlights

• Q2 reported GRM was $10.66/bbl, with normalized GRM at $8.90/bbl, both higher than the previous quarter.

• Standalone revenue from operations for Q2 was INR 202,992 crore, down from INR 218,608 crore in Q1, but up from INR 195,149 crore year-over-year.

• Standalone net profit for Q2 FY26 was INR 6,753.77 crore, up from INR 2,849.23 crore in Q2 FY25; consolidated net profit for Q2 FY26 was INR 7,705.25 crore, up from INR 1,999.30 crore in Q2 FY25.

• Pipeline throughput for Q2 was 24.1 MMT, down from 26.3 MMT in Q1, impacted by the Gujarat refinery shutdown.

• Total product sales in Q2 were 24.262 MMT, down from 26.32 MMT in Q1; H1 sales improved to 50.590 MMT from 48.213 MMT year-over-year.

Outlook and guidance

• Expecting significant improvement in Q3 and Q4 performance due to strong demand for petroleum products.

• Panipat refinery expansion expected to commission by June 2026, with 60% throughput in the first year.

• Gujarat refinery expansion to commission in June 2026; Barauni expansion to start commissioning from August 2026.

• Capex target for FY 2025/2026 is INR 33,494 crore, with major investments in refining, pipelines, marketing, and renewables.

• Compensation of INR 14,486 crore for LPG under-recoveries to be accrued monthly from November 2025, impacting future revenue recognition.