IOC Q2 Results FY27: Record Rs 21,630 Cr Profit, Inventory Gain

Energy · Indian Oil

In the IOC Q2 results, a record profit rests on inventory gains and LPG compensation while pump and LPG losses continue. Here is what drove the number and what to watch next.

Updated: Wednesday, 4 November 2026, 6:30 PM IST  |  Reading time: 16 min  |  Next update: Q3 FY27 results date, once the board meeting is announced

Latest update (Wednesday, 4 November 2026, 6:30 PM IST): Indian Oil reported on Friday, 30 October 2026, and the combined oil marketing company results were reported on Sunday, 1 November 2026. A confirmed share price after the results and the Q3 FY27 results date were not found as of the time above.

In plain words: an inventory gain happens when crude falls while a refiner holds stock bought at higher prices. GRM is gross refining margin, the profit per barrel from turning crude into fuels. Under-recovery is the gap between what LPG costs and what the household pays, which the government is expected to compensate.

Data note: as of Wednesday, 4 November 2026, 6:30 PM IST. Figures come from news reports of IOC’s results, not from the filing itself. Q1 FY27 standalone profit is derived. Year-ago base figures conflict across sources and are shown in the definition-trap table.

IOC Q2 results FY27: what are the key numbers?

Indian Oil Corporation reported a record standalone net profit of Rs 21,630 crore for the quarter ended 30 September 2026, nearly three times the Rs 7,610 crore of a year ago. The board approved the results on Friday, 30 October 2026. The number is real, but it was shaped by an inventory gain of about Rs 7,000 crore, a surge in refining margins and government LPG compensation, while the company kept losing money on petrol, diesel and LPG sales. That is the core of the IOC Q2 results.

Cite this table: PositionalCalls, “IOC Q2 FY27 key numbers, as of 4 November 2026”.

Data note: figures are as reported by PTI, Business Standard, PSU Connect and Indian Masterminds between 30 October and 1 November 2026. I have not opened the exchange filing, so line items can differ slightly. Base-period conflicts are explained in the definition-trap section.

Where did IOC’s record profit come from, and how much will repeat?

The record came from three things that do not all repeat: an inventory gain of about Rs 7,000 crore, very high refining margins, and Rs 7,243 crore of LPG compensation booked over the half-year. Business Standard reports that IOC recognised Rs 7,243.02 crore of government compensation as revenue from operations for the six-month period.

The inventory gain arose because crude prices fell between mid-June and mid-August. A refiner buys crude at one price, refines it and sells products later. When crude falls fast, products sold in the quarter were made from costlier crude on the books, so the gain shows up in a different quarter, and when crude rises it reverses. IOC itself warned that profitability in the coming quarters may be hurt by inventory losses if crude falls further as the West Asia situation normalises.

Cite this table: PositionalCalls, “IOC Q2 FY27 profit-quality scenarios, as of 4 November 2026”.

Assumptions: a flat 25% tax rate on each adjustment, no other line changing, and the whole Rs 7,243 crore of compensation falling in Q2 (the reports give it for the half-year, so this is a deliberate upper bound). This is an illustration of scale, not the company’s adjusted profit and not a forecast.

In plain words: IOC earned a record profit partly because crude prices fell while it held stock, and partly because the government compensated it for LPG losses. Neither is guaranteed in the next quarter.

Why did IOC swing from a loss in Q1 to a record in Q2?

Because crude was above USD 100 a barrel in Q1 while pump prices were frozen, and then crude fell and refining margins surged in Q2. IOC booked a consolidated loss of Rs 1,141 crore in Q1 FY27.

Cite this table: PositionalCalls, “IOC Q1 and Q2 FY27 comparison, as of 4 November 2026”.

The Q1 FY27 standalone figure is my derivation: the reported half-year standalone profit of Rs 18,968.66 crore minus Rs 21,630.03 crore for Q2 leaves a loss of about Rs 2,661 crore. I could not find the Q1 standalone number in the sources reviewed, so please treat it as derived. One outlet labelled the same Rs 18,969 crore as a consolidated half-year figure, which conflicts with other reports that call it standalone.

Across the three state-run fuel retailers, the combined standalone profit was Rs 30,106 crore in Q2 against a combined loss of about Rs 18,150 crore in Q1. The Q2 total is 68.3% above last year’s Q2 and equals about 39% of their combined FY26 profit of Rs 77,281 crore.

How do IOC, BPCL and HPCL compare in Q2 FY27?

IOC delivered the bulk of the profit, while BPCL and HPCL profits fell despite equally strong refining margins. The difference lies in mix and other businesses.

Cite this table: PositionalCalls, “IOC BPCL HPCL Q2 FY27 comparison, as of 4 November 2026”.

GRM is gross refining margin, the money earned on turning a barrel of crude into products. BPCL and HPCL earned over USD 32 a barrel, roughly three to four times a year ago. IOC’s own GRM was not in the reports I reviewed, so I have not shown one. IOC attributed its record to refining, petrochemicals and gas.

In the IOC Q2 results, IOC alone supplied about 72% of the three companies’ combined Rs 30,106 crore (my calculation: 21,630 divided by 30,106). Its Q2 profit also equals about 59% of its full-year FY26 profit of Rs 36,802 crore. That concentration is why the sector headline and the IOC headline can point in different directions: the group number rose 68.3%, yet two of the three companies reported lower profit.

How big are the LPG and fuel losses behind the headline?

Losses on LPG, petrol and diesel are large and still growing, and IOC’s net LPG under-recovery buffer stood at Rs 32,505.69 crore on 30 September 2026. Petrol and diesel prices have been unchanged since May and domestic LPG prices since March, according to the PTI report.

Cite this table: PositionalCalls, “IOC LPG and fuel loss per unit, as of 4 November 2026”.

LPG is a regulated product, so the government is expected to make good the gap between the retail price and the actual cost. Petrol and diesel are deregulated, so any loss on those sells falls on the companies. Because compensation has come in slowly, the three companies carried unpaid under-recoveries of about Rs 67,900 crore at the end of September, of which IOC’s share is Rs 32,505.69 crore.

A Business Standard headline of 23 September 2026 cites Icra saying high crude was leaving oil marketing companies with losses of about Rs 530 crore a day on fuel sales. I have not read the full report, so I note it only as a pointer. If LPG losses per cylinder reach the expected Rs 370 in December, the gap that needs compensation widens each month.

What do the operating numbers say about demand and refining?

Refinery throughput and domestic sales both grew, while exports fell about 11%. Volumes were healthy, so the profit swing is mostly margin and inventory, not demand.

Cite this table: PositionalCalls, “IOC Q2 FY27 operating metrics, as of 4 November 2026”.

Capacity utilisation of 105.8% over the half-year means refineries ran above their rated capacity. That helps in a high-margin period because each extra barrel earns the margin, but it also means growth from existing assets is limited without new projects.

Why do IOC Q2 results show different profit figures?

Because standalone and consolidated profit are different, and several outlets show different year-ago bases. Use standalone Rs 21,630 crore for the company itself and consolidated Rs 22,503 crore for the group.

Cite this table: PositionalCalls, “IOC Q2 FY27 definition trap, as of 4 November 2026”.

Correction note: some pages still describe last year’s Q2 FY26 results of Rs 7,610 crore as the latest quarter. This page covers the quarter ended 30 September 2026, with results approved on 30 October 2026.

What is the outlook after the IOC Q2 results?

IOC warned that profit in the coming quarters may be hurt by inventory losses if crude falls as West Asia normalises, and industry sources say crude firmed in October. That means the next quarter’s result depends on crude direction, product margins and the pace of LPG compensation.

• Crude direction: a fall after a rise creates inventory losses; a further rise helps inventory but widens pump losses.
• LPG compensation: loss per cylinder is expected to rise to Rs 309 in November and Rs 370 in December.
• Refining margins: BPCL and HPCL earned over USD 32 per barrel; the question is how much of that lasts.
• Pump prices: petrol and diesel have been unchanged since May, so any revision would change the loss per litre.
• Q3 FY27 date: the board meeting date was not confirmed as of Wednesday, 4 November 2026, 6:30 PM IST.

There is no dividend announcement in the reports I reviewed, and I do not have a confirmed share price after the results. Check the exchange filing for any corporate action. This page does not give ratings or price targets, because PositionalCalls.com is not a SEBI-registered research analyst or investment adviser.

How to read the IOC Q2 results: a decoder table

Look past the headline to five lines: inventory effect, refining margin, LPG compensation, pump losses and cash. The table gives what to read and the question to ask.

Cite this table: PositionalCalls, “IOC results-day decoder, as of 4 November 2026”.

Peers and context: Reliance Q2 results for the energy giant, ONGC Q2 results for crude producers, Coal India Q2 results and Power Grid Q2 results for other public sector energy names, plus the Q2 results calendar.

What this means for investors, LPG users and drivers

For investors the question is how much of Rs 21,630 crore is repeatable; for households, pump and LPG prices have not yet changed. The numbers do not by themselves signal a price revision.

• What you need: nothing to act on. This is analysis, not a call to buy or sell.
• Dividend: none found in the reports reviewed. Check the filing.
• Tax angle: gains and any dividend follow the rules in our capital gains tax on shares guide. Confirm current rates with an adviser.
• LPG users: domestic LPG prices have been unchanged since March per PTI; the company, not the household, is bearing the gap for now.
• Scam warning: fake messages about LPG subsidy credit, KYC or dividend payments are common. Verify only on official sites.

What most people miss in the IOC Q2 results

Analyst’s note

The points below are my reasoning from the reported numbers. They are not a recommendation.

Bottom line

Part of the Energy cluster under Earnings coverage. Last year’s IOC results are covered in our IOC Q3 results post.

IOC Q2 results FAQs

Sources

• Indian Oil Corporation Q2 FY27 results and press release on the NSE and BSE announcement pages (primary; to be checked by the reader).
• Business Standard, “Indian Oil posts 174% increase in net profit amid high refining margins”, 30 October 2026.
• PTI via Business Standard, “IOC, BPCL, HPCL clock Rs 30,106 cr Q2 profit, nearly 39% of FY26 earnings”, 1 November 2026.
• PSU Connect, “IOC Q2 PAT surges 184% to Rs 21,630 cr”, October 2026.
• Indian Masterminds, IOC Q2 FY27 results, 30 October 2026.
• Free Press Journal and PSU Watch, IOC Q2 FY27 reports, 30 October 2026.
• Business Today and Quartr, IOC Q2 FY26 reports, for the year-ago base.

Editorial disclosure: PositionalCalls.com is an independent research and education site founded by Shubham Chaudhary. PositionalCalls.com is not a SEBI-registered research analyst or investment adviser. Investments in securities markets are subject to market risks. Read all related documents carefully before investing. Returns are never guaranteed. How I researched this: I read the company’s results as reported by PTI, Business Standard and PSU Connect, compared figures across sources, recalculated every derived number shown as my calculation, and listed disagreements instead of choosing the more exciting number.