IOC Q2 net profit drops 98% due to lower refining and fuel margins
ECONOMY & POLICY

IOC Q2 net profit drops 98% due to lower refining and fuel margins

State-owned Indian Oil Corporation (IOC) reported a significant 98.6 per cent drop in net profit for the September quarter due to reduced refinery and marketing margins. According to a filing on the stock exchange, IOC's standalone net profit stood at Rs 1.80 billion for the July-September period—the second quarter of the 2024-25 fiscal year—compared to Rs 129.67 billion in the same period the previous year.

Sequentially, the profit also declined from Rs 26.43 billion recorded in the April-June period. IOC faced a decline in refinery margins and incurred under-recoveries from selling domestic cooking gas (LPG) at government-regulated prices, which were lower than its production costs.

For the six-month period ending on September 30, IOC recorded an under-recovery on LPG of Rs 88.70 billion. The company earned $4.08 per barrel from refining crude oil into fuels like petrol and diesel, a sharp decrease from the gross refining margin of $13.12 per barrel a year ago.

Pre-tax earnings from the downstream fuel retailing business plunged significantly to Rs 100.03 million, down from Rs 1.77 trillion in the July-September 2023 period. Revenue from operations also declined, reaching Rs 1.95 trillion in July-September from Rs 2.02 trillion in the previous year, as global oil prices softened.

IOC and other state-owned fuel retailers, including Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL), had benefited last year by holding petrol and diesel prices steady despite declining costs. This price freeze was defended as a measure to offset the losses incurred by these retailers in the previous year when they had refrained from raising retail prices, despite rising costs.

State-owned Indian Oil Corporation (IOC) reported a significant 98.6 per cent drop in net profit for the September quarter due to reduced refinery and marketing margins. According to a filing on the stock exchange, IOC's standalone net profit stood at Rs 1.80 billion for the July-September period—the second quarter of the 2024-25 fiscal year—compared to Rs 129.67 billion in the same period the previous year. Sequentially, the profit also declined from Rs 26.43 billion recorded in the April-June period. IOC faced a decline in refinery margins and incurred under-recoveries from selling domestic cooking gas (LPG) at government-regulated prices, which were lower than its production costs. For the six-month period ending on September 30, IOC recorded an under-recovery on LPG of Rs 88.70 billion. The company earned $4.08 per barrel from refining crude oil into fuels like petrol and diesel, a sharp decrease from the gross refining margin of $13.12 per barrel a year ago. Pre-tax earnings from the downstream fuel retailing business plunged significantly to Rs 100.03 million, down from Rs 1.77 trillion in the July-September 2023 period. Revenue from operations also declined, reaching Rs 1.95 trillion in July-September from Rs 2.02 trillion in the previous year, as global oil prices softened. IOC and other state-owned fuel retailers, including Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL), had benefited last year by holding petrol and diesel prices steady despite declining costs. This price freeze was defended as a measure to offset the losses incurred by these retailers in the previous year when they had refrained from raising retail prices, despite rising costs.

Next Story
Infrastructure Urban

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Next Story
Infrastructure Transport

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Next Story
Infrastructure Transport

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?