IOC Share Price Rises on Record Q2 Profit

IOC Shares Surge on Strong Q2 Performance

Indian Oil Corporation (IOC) shares climbed nearly 1.5% to hit a 52-week high of ₹157.48 on Tuesday, October 28. The rise follows the state-owned company’s impressive September quarter results, driven by higher refining margins and improved operational efficiency.

Standalone Q2 Net Profit Soars

IOC reported a standalone net profit of ₹7,610 crore for Q2 FY26 (July–September), a massive jump from ₹180 crore in the same period last year. Chairman Arvinder Singh Sahney attributed this surge to the company’s ongoing operational efficiency initiatives across its verticals.

Crude oil processing increased by 5% on similar capacity, while fuel sales rose 6% during the quarter. Additionally, IOC booked marginal inventory gains for the first time in a year, following a significant inventory loss in Q2 FY25.

The company achieved a gross refining margin of $10.6 per barrel of crude oil processed, compared to $1.59 per barrel in the same quarter last year and $2.15 in Q1 FY26.

Production and Sales Growth

IOC’s refineries processed 17.6 million tonnes of crude oil in Q2 FY26, up from 16.73 million tonnes in Q2 FY25. Petroleum product sales rose by 1.3 million tonnes, resulting in a 6% increase in sales volume to 24.26 million tonnes. The firm recorded its highest-ever first-half sales volumes of 50.6 million tonnes, surpassing last year’s 48.21 million tonnes.

Consolidated Financial Performance

On a consolidated basis, IOC posted a net profit of ₹7,817.55 crore in Q2 FY26, compared to a net loss of ₹169.58 crore in the same quarter last year. Sequentially, net profit increased 14.7% from ₹6,813.71 crore in Q1 FY26.

Revenue from operations jumped 3.9% year-on-year to ₹2,06,447.11 crore, while total income increased 3.8% to ₹2,07,091.44 crore. Meanwhile, total expenses declined 2.5% YoY to ₹1,96,699.02 crore.

Domestic and Export Sales Growth

The first half of the fiscal year typically sees slower petroleum product sales due to monsoon-related demand challenges. However, IOC recorded strong growth in H1 FY26: domestic petroleum sales rose 4% (industry growth: 3.9%), institutional diesel sales jumped nearly 36% (industry growth: 13%), and petrochemical sales increased 5% to 1.54 million tonnes.

The company also achieved record quarterly gas sales of 1.84 million tonnes in Q2 and increased fuel exports by 37% to 1.41 million tonnes by targeting international markets. Overall sales revenue grew to ₹2.04 lakh crore in Q2 from ₹1.96 lakh crore in the same quarter last year.

Compliance with International Sanctions

Chairman Sahney emphasized that IOC will adhere to all international sanctions. The company is cautious regarding Russian oil imports following new US sanctions, though Russian crude accounted for 21% of IOC’s imports in April–September. IOC’s subsidiary, Chennai Petroleum Corporation Ltd (CPCL), has already halved Russian oil imports in line with these regulations.

IOC Share Price Performance

IOC shares opened at ₹156.40 on NSE, briefly touched the 52-week high, and later declined to an intraday low of ₹154.70. As of 10:24 AM, shares were trading at ₹154.99, down 0.14%.

Over the past month, IOC shares have gained 7%, 5% over three months, and nearly 14% over six months. The company’s market capitalization currently stands at ₹2.19 lakh crore.

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Sorit Chaudhary

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