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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code