IOC Share Price Hits 52-Week High as Q2 Profit Soars 42x YoY

Market Performance

Indian Oil Corporation (IOC) — the Maharatna PSU — turned heads in the stock market today.

IOC share price rose 1.5%, touching a 52-week high of ₹157.50 on the BSE during early trade.

The surge came right after the company posted a massive 42 times jump in its Q2 profit, reflecting strong operational performance and improved refining margins.

IOC Q2 Results: Strong Numbers, Stronger Momentum

The September quarter proved to be a game-changer for IOC.

The company reported a net profit of ₹7,610 crore in Q2 FY26, compared to just ₹180 crore in the same period last year — marking a 4,128% year-on-year (YoY) surge.

This turnaround was largely driven by operational efficiency, steady refining margins, and a return to inventory gains after several quarters of losses.

Key Financial Highlights:

• Revenue from operations: ₹2,02,992.34 crore in Q2 FY26 vs ₹1,95,148.9 crore YoY — up 4%
• Standalone EBITDA: ₹14,600 crore in Q2 FY26
• Integrated EBITDA margin: USD 8.9 per barrel, steady from Q1 FY26
• Gross refining margin (GRM): USD 10.7 per barrel
• Net profit: ₹7,610 crore — a 42x YoY rise

These figures underline the strong recovery in IOC’s refining operations and marketing performance during the quarter.

What Drove IOC’s Q2 Performance

A few factors came together to lift IOC’s earnings:

• Refining margins reached a six-quarter high, offering significant tailwinds to profitability.
• Operational efficiency and inventory gains supported the turnaround, marking the first positive inventory impact in over a year.
• The company had faced inventory losses in July–September 2024, which had previously limited profit growth.

This quarter’s results, however, paint a far stronger picture for the Maharatna PSU, reinforcing its position as a key player in India’s energy ecosystem.

Government Compensation & LPG Impact

In a notable policy move, the Ministry of Petroleum and Natural Gas (MoPNG) approved a ₹14,490 crore compensation for IOC — part of the total ₹30,000 crore announced for all oil marketing companies.

This amount is meant to offset LPG under-recoveries for FY25 and FY26.

• The compensation will be disbursed in 12 equal monthly instalments starting November 2025.
• IOC did not record this compensation in Q2 FY26 but plans to start recognizing it from Q3 FY26.
• LPG net under-recovery: ₹2,120 crore in Q2 FY26
• Net negative LPG buffer: ₹25,770 crore at the end of the quarter

This support is expected to gradually stabilize IOC’s balance sheet as reimbursements begin to flow in the coming quarters.

Company Overview: IOC’s Position in the PSU Pack

Indian Oil Corporation remains India’s largest oil refining and marketing company, holding a central role in the country’s energy supply chain.

As a Maharatna PSU, its scale, integrated operations, and strategic role in energy distribution continue to attract investor interest.

The company’s focus on operational efficiency, coupled with stable refining margins, underscores its ability to weather commodity cycles and deliver long-term value.

Summary

The IOC share price rally mirrors investor optimism after a powerful Q2 performance.

With a 42x profit surge, rising revenue, and improved refining margins, the company showcased a strong comeback after a challenging year.

Even without factoring in upcoming government compensation, IOC’s performance signals operational resilience and financial discipline.

In a market where PSU stocks are gaining renewed traction, Indian Oil Corporation stands out — not just for its size, but for its ability to deliver steady performance through shifting market dynamics.