Indian Oil's Q3 FY26 Performance: A Deep Dive into Standalone Highlights

Indian Oil Corporation Limited, a Maharatna company, has released its standalone financial and operational highlights for the third quarter and nine months ended December 31, 2025. The company demonstrated robust performance, underpinned by strong operational efficiency and strategic capital expenditure. For Q3 FY26, Indian Oil reported a Profit Before Tax (PBT) of 15,992 Crore and a Profit After Tax (PAT) of 12,126 Crore. The EBITDA contribution stood at 22,046 Crore, reflecting healthy profitability despite negative exchange fluctuations impacting crude and other liabilities by a combined (757) Crore.

The nine-month period (9M FY26) also showcased solid results, with PBT reaching 33,462 Crore and PAT at 25,425 Crore. The EBITDA contribution for 9M FY26 was 51,373 Crore. The company's Gross Refining Margin (GRM) was 12.22 US$/bbl for Q3 FY26 and 8.41 US$/bbl for 9M FY26, indicating favorable refining economics. Debt levels remained consistent at 115,948 Crore for both the quarter and the nine-month period.

Operational Excellence and Strategic Expansions

Indian Oil's operational performance remained strong across its key segments. In Refinery Operations, throughput for Q3 FY26 was 19.4 MMT, with an impressive capacity utilization of 109.7%. For the nine-month period, throughput reached 55.7 MMT, with capacity utilization at 105.3%. Distillate Yield was 80.4% in Q3 and 79.9% in 9M, while Fuel & Loss stood at 8.6% for both periods. The utilization of High Sulphur crude was 55.8% in Q3 and 54.4% in 9M, highlighting efficient processing capabilities.

Pipeline Operations also demonstrated robust performance, with a throughput of 27.6 MMT in Q3 FY26 and 77.9 MMT in 9M FY26. Capacity utilization for pipelines was 76.3% in Q3 and 72.2% in 9M. The Marketing Operations segment reported total sales of 27.184 MMT in Q3 FY26 and 77.774 MMT in 9M FY26, covering a wide range of petroleum products, gas, and petrochemicals. Inland sales of petroleum products were 23.111 MMT in Q3 and 65.700 MMT in 9M, with significant contributions from HSD (9.950 MMT in Q3) and LPG (4.249 MMT in Q3).

Driving Growth Through Capital Expenditure

Indian Oil is actively pursuing several major projects to enhance its refining capacity and diversify its product portfolio. The company incurred a provisional segment-wise Capex of 24,336 Crore during 9M FY26, with a target Capex of 34,701 Crore for the full FY 2025-26. Key projects include the Panipat Refinery Expansion from 15 MMTPA to 25 MMTPA, which is 91.6% complete with an expected commissioning by December 2026. Similarly, the Gujarat Refinery Expansion to 18 MMTPA is 85.8% complete, targeting November 2026 for commissioning.

Other significant projects include the Barauni Refinery Expansion (89.4% complete, Aug'26 commissioning), PX-PTA Complex at Paradip Refinery (92.2% complete, Aug'26 commissioning), and the New Mundra Panipat Crude Oil Pipeline (88.6% complete, Jun'26 commissioning). These investments underscore Indian Oil's commitment to strengthening its infrastructure, expanding its market reach, and venturing into new growth areas like petrochemicals and new energy solutions, as evidenced by brands like IndiGreen and EV Battery Swap Points. The company's strategic focus on these expansions is expected to drive sustained growth and reinforce its leadership position in the Indian energy sector.

A Future-Ready Approach

Indian Oil's performance in Q3 and 9M FY26 reflects a company focused on operational efficiency, strategic growth, and diversification. The robust financial results, coupled with aggressive capital expenditure in refinery expansions and new projects, position Indian Oil for continued leadership in the evolving energy landscape. The company's commitment to enhancing capacity and exploring new product segments demonstrates a forward-looking approach, aiming to meet India's growing energy demands while adapting to future market trends.