The three state-run oil companies, controlling over 90% of domestic fuel retail market, have registered a combined net profit of ₹19,470 crore in January-March 2026 quarter, a 40.74% growth over the same period last year, despite the impact of global energy supply disruptions in March.
While two oil marketing companies (OMCs), Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL), posted handsome profits after tax in the fourth quarter of 2025-26 (Q4 FY26), Bharat Petroleum Corporation Ltd’s (BPCL) net profit remained flat. International oil prices that were around $72 a barrel before the war broke out on February 28, surged over 66.7% to about $120 a barrel on March 9. They, however, softened a bit in May after remaining elevated in April. It was hovering around $105.6 a barrel on Wednesday, about 14% down from the peak.
Cumulatively, the three companies saw a 130% jump in their combined net profit in 2025-26, to ₹77,280.65 crore as compared to ₹33,601.57 crore in 2024-25, according to their standalone financial results declared this week. The performance was largely on account of stable oil prices for much of the year (till the US-Israel attack on Iran in February roiled the market). With raw material prices relatively low, and finished product prices stable, these companies enjoyed higher refining and marketing margins.
HPCL, which declared its Q4 and full year financial results on May 13, posted a 46% jump in its net profit for Q4 o ₹4,901.50 crore as compared to ₹3,355 crore in Q4 of FY25. In the full fiscal year (FY26), HPCL ’s net profit was ₹17,175.23 crore, a 133.2% jump as compared to ₹7,365 crore in FY25. The company also declared a final dividend of ₹19.25 per equity share having face value of ₹10 for FY26, which is in addition to the interim dividend of ₹5 per equity share.
IOC was the second to declare its financial results on May 18. The country’s biggest refiner posted a net profit of ₹11,377.51 crore in Q4 of FY26 as compared to ₹7,264.85 crore in the same period of previous year, registering 56.6% jump. In the full financial year of 2025-26 it registered a ₹36,802.42 crore net profit as compared to ₹12,961.57 crore in 2024-25, posting a surge of over 183.9%.
“Improvement in net profit is mainly on account of higher refining and marketing margins,” the company said in a statement on Monday.
BPCL, which published its results on Tuesday, saw a marginal decline in its profit after tax by 0.7% to ₹3,191 crore in Q4 of FY26 as compared to ₹3,214 crore in the same period of previous year. Net profit for the full fiscal year (FY26), however, saw a sharp 75.54% jump to ₹23,303 crore as compared to ₹13,275 crore in FY25.
The government did not raise petrol and diesel prices for more than two months of the war. After the company’s monthly revenue losses surged to about ₹30,000 crore, they first hiked petrol and diesel rates by ₹3 per litre each last week.On Tuesday, they again raised retail prices of the two auto fuels by a little less than Re 1 per litre.
Government officials and company executives said the companies are unlikely to repeat the same financial performance in 2026-27 if the war prolongs and energy prices remain elevated. Even after raising petrol and diesel rates by almost ₹4 per litre each, they are collectively incurring a loss of over ₹500 crore per day on selling automobile fuel and cooking gas, one of them said.
According to one company executive, “losses have reduced because of two reasons – first, international oil prices have softened a bit in May as compared to March and April, and companies have reduced their losses on petrol and diesel by raising their rates by around ₹4 a litre.”
India’s average crude oil purchase price (popularly called the Indian basket) in 2025-26 was $70.99 a barrel. This has spiked after the war in West Asia. According to the government’s monthly data of Indian basket, India’s average purchase price in the month of January 2026 was $63.08 per barrel, rose to $69.01 a barrel in February, $113.49 in March (the first full month of the war in West Asia), and $114.48 in April. It, however, softened by about 6% sequentially to $107.75 a barrel (as on May 20).
“Crude oil prices witnessed some cooling off from higher levels; however, the Indian Rupee remained under pressure and continued to depreciate amid prevailing global uncertainties,” a Bajaj Broking Market Commentary said. India imports over 88% of crude oil it processes and pays in dollar, which also impacts the rupee-dollar exchange rates. International benchmark Brent crude on Wednesday was trading at $108.79 a barrel, witnessing a dip of 2.24% as compared to $111.28 on Tuesday. The rupee on Wednesday depreciated 13 paise to close at a record low of 96.83 against the US dollar, about 6.28% down from around 91.1 on February 28.
