Summary:
India's three state-owned oil marketing companies reported combined Q2FY27 standalone profit of ₹30,106 crore, up 68.3% year on year. Indian Oil led the recovery, supported by stronger refining margins, while LPG under-recoveries and crude price volatility remained key concerns.
India’s three state-owned oil marketing companies (OMCs) reported a combined standalone net profit of ₹30,106 crore for Q2FY27, up 68.3% YoY. The recovery was supported by strong refining margins and inventory gains, with the September quarter alone accounting for nearly 39% of their combined FY26 annual profit.
Oil Marketing Companies’ Q2FY27 Performance Shows Strong Recovery
Indian Oil Corporation (NSE: IOC), Bharat Petroleum Corporation (NSE: BPCL) and Hindustan Petroleum Corporation (NSE: HINDPETRO) witnessed a sharp turnaround from their combined loss of around ₹18,150 crore in Q1FY27.
The two combined had a quarterly profit of ₹30,106 crore as against ₹77,281 crore made in the entire FY26.
The improvement was despite pressure on petrol and diesel marketing margins as domestic retail prices were stable while international crude oil and petroleum product prices fluctuated.
Combined revenue from operations rose nearly 29% YoY to ₹5.60 lakh crore, up from ₹4.35 lakh crore in Q2FY26.
Indian Oil Tops Earnings Recovery With Record Profit
Indian Oil was the biggest contributor with a contribution of nearly 72% to the combined quarterly profit of the three companies.
The company reported a record standalone quarterly net profit of ₹21,630 crore, up from ₹7,610 crore in Q2FY26, representing a growth of about 184% YoY.
BPCL and HPCL also turned profitable after reporting losses in Q1FY27. Their earnings, however, were still down from the same quarter a year earlier.
| Company | Q2FY27 profit | Change YoY |
| Indian Oil | ₹21,630 crore | +184% |
| BPCL | ₹4,993 crore | -22.5% |
| HPCL | ₹3,483 crore | -9.1% |
| Combined | ₹30,106 crore | +68.3% |
Indian Oil also benefited from lower crude prices for part of the quarter and higher profitability in petrochemicals and gas.
Tightening margins give big earnings lift
Higher gross refining margins (GRMs) played an important role in the recovery.
HPCL’s GRM improved to $32.15/barrel from $8.80 in Q2FY26. BPCL reported GRM of $32.53 a barrel against $10.78 a year ago.
Processing crude oil to petroleum products has higher margins.
But the companies were facing pressure from LPG under-recoveries. The cumulative under-recoveries were around ₹67,900 crore by September 30, 2026.
Indian Oil alone reported a negative LPG pricing buffer of ₹32,505.69 crore and acknowledged ₹7,243 crore in government compensation during H1FY27.
Despite the quarterly recovery, the three firms’ combined standalone profit was at ₹11,956 crore for H1FY27, impacted by Q1 losses.
Oil PSU Share Prices Continue to be Under Pressure
The earnings rebound has not translated into broad stock market gains.
Indian Oil was trading down 0.20% at ₹130.15 on the NSE in the October 30 trading session. BPCL was down 1.49% at ₹284.90 with around 28.02 lakh shares changing hands. HPCL was down nearly 0.5% at ₹340.55.
The moves came ahead of the Nov. 1 combined earnings report and can't be blamed solely on that news.
And the recent changes in duties on petroleum exports add to the uncertainty. Higher export duties on diesel and aviation turbine fuel could hit refining realizations, while the removal of petrol export duty offers some relief.
The Q2FY27 results have indicated a strong earnings recovery, especially for Indian Oil. Future profitability will depend on crude oil prices, refining margins, inventory movements and recovery of LPG-related costs.
