IOC Q3 net profit soars six times on higher GRMs, LPG compensation

IOC's revenue from operations rose 7.7 per cent to Rs 2.36 lakh crore in the quarter ended December 2025

Indian Oil Corporation (IOC) on Wednesday reported a six-times jump in consolidated net profit to Rs 13,502 crore for the quarter ended December 2025 on the back of improved gross refining margins (GRMs), government compensation for under-recovery on the sale of liquefied petroleum gas (LPG) cylinders, and subdued crude oil prices. The company’s net profit stood at Rs 2,147 crore in the corresponding quarter of the last financial year (2024–25).

 

Indian Oil’s revenue from operations rose 7.7 per cent to Rs 2.36 lakh crore during the December quarter. For the April–December period, IOC’s average GRM more than doubled to $8.41 per barrel, compared with $3.69 a barrel in the same period last year.

 

 

The refiner’s under-recovery on the sale of LPG cylinders stood at Rs 24,318 crore at the end of December 2025. To compensate for the losses, the Indian government has approved Rs 14,486 crore, which will be disbursed in 12 equal monthly instalments beginning November 2025.

 

IOC said instalments for the months of November and December, amounting to Rs 2,414 crore, have been recognised as revenue from operations, and the cumulative net negative buffer has been reduced to that extent.

 

Physical performance

 

Indian Oil’s domestic product sales grew 5 per cent to 26.015 million tonnes (MT) in the third quarter, while exports fell 14 per cent. The company’s refinery throughput rose 7.27 per cent to 19.427 MT in the quarter from 18.110 MT in the same period last year. Pipeline throughput also improved by 10.65 per cent to 27.557 MT.

 

In the first nine months of FY26, Indian Oil’s domestic petroleum sales rose 4.3 per cent, while petrochemical sales volume grew 3 per cent.