Indian Oil Corporation Limited Reports Record FY26 Volumes

Indian Oil Corporation Limited reported record standalone sales of 105.117 MMT and crude throughput of 75.451 MMT in FY26, while net profit rose to ₹36,802 crore from ₹12,962 crore a year earlier. The performance reflected higher refining and marketing margins, although the company reported a loss in the first quarter of FY27 after crude costs increased amid the West Asia conflict.

What did Indian Oil Corporation Limited report for FY26?

Indian Oil Corporation Limited, referred to as IndianOil, recorded its highest-ever annual crude throughput, sales volumes and domestic petroleum sales during FY26. Standalone revenue from operations increased 5% to ₹8,86,224 crore from ₹8,45,513 crore in FY25. Net profit increased to ₹36,802 crore, nearly three times the FY25 profit of ₹12,962 crore.

The company attributed the improvement in profitability mainly to higher refining and marketing margins. Its refineries processed 75.451 million metric tonnes, or MMT, of crude during the year, compared with 71.564 MMT in FY25. Capacity utilisation rose to 107.4%, while refinery throughput increased 5% year on year.

IndianOil's total sales volume reached 105.117 MMT, up from 100.292 MMT in the preceding year. Domestic petroleum sales, excluding gas, rose to 88.97 MMT from 84.96 MMT. The company said this was its highest domestic petroleum sales volume and gave it an overall market share of 41.8%, excluding own use.

The company also expanded its cross-country pipeline operations. Combined pipeline throughput rose 5% to 105.556 MMT from 100.477 MMT. Domestic petrochemical sales grew 4.4% to 3.294 MMT, while domestic lubricants sales rose 17.8% to 899 thousand metric tonnes, or TMT. IndianOil's lubricants market share stood at 44.9%.

Which operating metrics reached record levels in FY26?

IndianOil's record annual sales and crude processing were supported by higher demand across its marketing, refining and pipeline network. Domestic petroleum sales increased 4.8%, exceeding the 4.3% growth reported for the industry, according to the company.

Institutional high-speed diesel, or HSD, sales rose 21.2% during FY26, compared with a 7.2% increase in industry volumes. This indicates that IndianOil's institutional diesel business grew faster than the wider market over the year. The company did not provide a value breakdown of this segment in the supplied results.

The first half of FY26 had already indicated stronger operating activity. H1 sales volumes reached a record 50.590 MMT, against 48.213 MMT a year earlier, and refinery throughput rose to 36.292 MMT at 103% capacity utilisation. H1 standalone net profit was ₹13,299 crore, compared with ₹2,823 crore in H1 FY25.

Why did IndianOil report a loss in the first quarter of FY27?

IndianOil reported a standalone net loss of ₹2,661 crore in Q1 FY27, compared with a net profit of ₹5,689 crore in Q1 FY26, mainly because crude costs rose due to the West Asia conflict. This was a reversal from the stronger profitability reported for the full FY26 period.

Revenue from operations for the June 2026 quarter rose 26% to ₹2,75,972 crore from ₹2,18,608 crore in the year-earlier quarter. However, the rise in revenue did not prevent the quarterly loss, illustrating the effect of input costs and refining and marketing margins on an oil marketing company's earnings.

Operational indicators were stronger in the quarter. Crude throughput reached a record 19.165 MMT and refinery capacity utilisation was 109.4%, compared with 18.683 MMT and a 3% improvement in throughput a year earlier. Pipeline throughput rose 9% to a record 28.548 MMT.

IndianOil's total sales volume was 26.211 MMT in Q1 FY27, marginally below 26.328 MMT a year earlier. The company nonetheless reported record quarterly sales of 4.522 MMT of motor spirit, or MS, and 10.866 MMT of HSD. Its domestic market share increased to 43.1% from 41.5% in Q1 FY26.

How are refining margins and crude prices affecting IndianOil?

Refining and marketing margins were the principal reason given for IndianOil's FY26 profit increase, while higher crude cost was cited for the Q1 FY27 loss. The contrast shows that profitability can move differently from sales volumes and revenue when crude prices and product realisations change.

In H1 FY26, IndianOil reported a gross refining margin, or GRM, of $6.32 a barrel, compared with $4.08 a barrel in H1 FY25. Its normalised GRM was $7.89 a barrel, against $2.97 a barrel a year earlier. These disclosed margin figures provide context for the significant increase in first-half and full-year profitability.

The company also reported growth in natural gas sales in Q1 FY27. Gas sales volume increased 11% to 1.873 MMT from 1.685 MMT. During the quarter, IndianOil launched the SERVO Hypersport, SERVO Hyperdrive and SERVO Hypertorq premium lubricant series for motorcycles, four-wheelers and commercial vehicles, respectively.

For investors, the FY26 figures establish the scale of IndianOil's refining, pipeline and marketing operations, while the Q1 FY27 result highlights sensitivity to crude-cost movements. Customers and industrial users are linked to the company's operations through its fuel, lubricants, petrochemicals and gas businesses, but the supplied data does not quantify the effect of the quarterly loss on product pricing or supply.

When will IndianOil announce its September 2026 quarter results?

IndianOil's board was scheduled to meet on October 30, 2026, to consider and approve unaudited financial results for the quarter and half year ended September 30, 2026. The company informed the National Stock Exchange of India Limited and BSE Limited about the proposed board meeting in an October 13 filing.

The company's trading window for insiders was closed from October 1, 2026, until 48 hours after the September-quarter results are filed with stock exchanges. The supplied information does not include the board-approved Q2 FY27 financial statements, so the scheduled disclosure remains the next formal update identified in the material.

Conclusion

IndianOil ended FY26 with record operating volumes, higher refinery utilisation and a substantial increase in standalone profit to ₹36,802 crore. Domestic petroleum sales outpaced industry growth, while pipeline, petrochemical and lubricants operations also recorded growth. The Q1 FY27 loss, despite higher revenue and several operational records, showed the impact that a rise in crude costs can have on earnings.

The next item to watch is the company's unaudited Q2 FY27 and H1 FY27 financial results for the period ended September 30, 2026, which the board was scheduled to consider on October 30. Those results will provide the next disclosed measure of refining margins, crude-cost pressure and operating performance after the first-quarter loss.