India’s state-owned oil companies — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) — reported strong profits in the April–June quarter of FY26. Stable fuel prices boosted petrol and diesel sales margins, which helped balance out losses from falling crude oil inventory values.
According to regulatory filings, the three companies together made a net profit of ₹16,184 crore in Q1 — more than double compared to the same quarter last year.
BPCL Leads in Profits
- BPCL posted the highest profit of ₹6,124 crore, ahead of IOC’s ₹5,689 crore, even though IOC is nearly twice its size.
- HPCL earned ₹4,371 crore.
Refining and Sales Performance
- BPCL’s refining margin (GRM) was $4.88 per barrel, higher than IOC’s $2.15 and HPCL’s $3.08.
- BPCL also ran its refineries at 118% capacity, better than IOC (107%) and HPCL (109%).
- In terms of fuel sales, BPCL topped again, selling 153 kilolitres per outlet per month, compared to IOC’s 130 kl.
Strong Fuel Margins
Brokerage firm ICICI Securities reported that fuel retailers earned:
- ₹10.3 per litre on petrol (up from ₹4.4 last year)
- ₹8.2 per litre on diesel (up from ₹2.5 last year)
This was possible because crude oil prices dropped by 21%, and global fuel prices fell by 16–18%, increasing profit margins despite losses in inventory.
Inventory and LPG Losses
- IOC faced a heavy ₹6,465 crore inventory loss, while HPCL booked a ₹2,000 crore loss. Adjusting for this, IOC’s GRM would have been $6.91 per barrel, much higher than last year’s $2.84.
- Losses continued on LPG (cooking gas) sales, as government subsidy reimbursements are still pending. In Q1:
- IOC bore ₹3,719 crore in LPG losses,
- BPCL ₹2,076 crore,
- HPCL ₹2,148 crore.
The government has announced a ₹30,000 crore package to cover these LPG losses, but the relief has not yet been fully implemented.
