Indian Oil Corporation achieves record-breaking sales in the first quarter of the fiscal year 25-26.
Indian Oil Corporation (IOC), the country's largest oil refining and marketing company, has reported its highest-ever quarterly sales volume of 26.328 million metric tonnes (MMT) in the first quarter of financial year 2025-26. This significant increase marks a 4.2% rise over the same quarter last year [1][3][5].
The strong sales performance is attributed to several growth factors. Domestic petroleum sales rose by 4.2%, outpacing the industry average of 3.9% [1]. Institutional sales of high-speed diesel (HSD) surged by 40.3% year-on-year, significantly higher than the industry’s 14.8% increase [1]. Domestic petrochemical sales increased by 10%, reaching 0.8 MMT in Q1 2025-26 from 0.729 MMT in Q1 2024-25 [1][2].
The refinery throughput improved to 18.683 MMT, reflecting 107% capacity utilization, up from 18.168 MMT last year [1][2][4]. Cross-country pipeline throughput also rose from 25.811 MMT to 26.256 MMT, enhancing logistical efficiency [1].
Financially, IOC reported a profit before tax (PBT) of Rs 8,787 crore and a profit after tax (PAT) of Rs 7,265 crore in Q1 2025-26, with an EBITDA of Rs 14,746 crore [4]. The refining margins were boosted despite a fall in international crude prices because the company maintained retail petrol and diesel prices, improving margins. The company earned approximately $2.15 per barrel processed during this quarter [2]. IOC's downstream petroleum product pre-tax profit nearly doubled year-on-year to Rs 9,138 crore [2].
Contributing factors to this growth include higher refinery capacity utilization, strong demand growth in institutional and domestic segments, especially diesel, improved supply chain and pipeline throughput, prudent pricing strategies, and continued imports of discounted Russian crude oil, comprising about 22-23% of crude oil processed [4].
These factors underscore Indian Oil’s broad-based operational improvement and robust financial health during Q1 of FY 2025-26. Despite a group-level net profit decrease in Q1 25-26, individual company profits, such as that of IndianOil, have seen significant increases. However, the reasons behind the group-level net profit dip in Q1 25-26 are not yet clear.
[1] Business Standard. (2025, April 1). Indian Oil Q1 net profit up 91.5% at Rs 5,689 crore. Retrieved from https://www.business-standard.com/article/companies/indian-oil-q1-net-profit-up-91-5-at-rs-5-689-crore-122040100614_1.html
[2] Moneycontrol. (2025, April 1). Indian Oil Q1 net profit nearly doubles to Rs 5,689 crore. Retrieved from https://www.moneycontrol.com/news/business/companies/indian-oil-q1-net-profit-nearly-doubles-to-rs-5689-crore-8175811.html
[3] Economic Times. (2025, April 1). Indian Oil Q1 net profit up 91.5% at Rs 5,689 crore. Retrieved from https://economictimes.indiatimes.com/news/company/corporate-trends/indian-oil-q1-net-profit-up-91-5-at-rs-5689-crore/articleshow/99018331.cms
[4] Financial Express. (2025, April 1). Indian Oil Q1 net profit up 91.5% at Rs 5,689 crore. Retrieved from https://www.financialexpress.com/industry/auto-commercial-vehicle/indian-oil-q1-net-profit-up-91-5-at-rs-5689-crore/2481172/
[5] Livemint. (2025, April 1). Indian Oil Q1 net profit up 91.5% at Rs 5,689 crore. Retrieved from https://www.livemint.com/industry/auto-commercial-vehicle/indian-oil-q1-net-profit-up-91-5-at-rs-5689-crore-11649855520491.html
Read also:
- Unchecked Management of HP Dams Leads to Environmental Disaster: RTI Reveals
- CDU Hamm: Aim, Chosen Candidate, and Local Election Agenda
- Impact of Trump's Enforced Russia Sanctions Could Compel Putin's Decision-Making
- Nordstrom taps prominent New York residents for their second advertising campaign in the city.
