November 9, 2026: India's state-run fuel retailers reported combined standalone net profit of ₹301.06 billion in the July-September quarter, driven primarily by elevated refining margins and inventory gains. The total was nearly 39% of their profit for the entire previous financial year, while Indian Oil Corporation accounted for the largest share with record standalone profit of ₹216.30 billion.

Why did India's oil PSUs report ₹301.06 billion in Q2 profit?

India's oil PSUs reported the ₹301.06 billion Q2 profit because higher refining margins and inventory gains more than offset losses on petrol and diesel sales and an unpaid LPG subsidy bill. The three state-run fuel retailers swung from a combined loss to profit during the July-September period.

The result reflects an unusually favourable refining environment rather than a clear improvement in fuel marketing economics. Global supply disruptions, lower fuel inventories and tight product availability supported prices for diesel, gasoline and aviation turbine fuel. For the oil PSUs, converting crude into these products became substantially more profitable during the quarter.

The profit number is significant in relation to the preceding full financial year, as the September-quarter total alone represented nearly 39% of annual earnings from that period. However, the available information indicates that part of the increase came from factors that may not recur at the same scale, including inventory valuation gains and government compensation linked to past LPG losses.

Bharat Petroleum Corporation and Hindustan Petroleum Corporation reported gross refining margins above $32 per barrel in Q2, compared with roughly $9-$11 per barrel a year earlier. BPCL's gross refining margin rose to $32.53 per barrel from $10.78, while HPCL's rose to $32.15 per barrel from $8.80.

These figures show the extent of the change in the product market. During the September quarter, gasoline cracks nearly tripled year on year, diesel cracks rose to about 3.5 times their year-earlier level, and aviation turbine fuel cracks increased to around 3.7 times. Such moves lifted the value refiners received for products relative to crude feedstock costs.

(Source: Multibagg)