IOC, BPCL, HPCL double combined profit to Rs 23,743 crore in December quarter

New Delhi: State-owned oil marketing companies (OMCs)-IOC, BPCL and HPCL-more than doubled their combined quarterly profit to ₹23,743 crore in the December 2025 quarter from ₹10,545 crore in the corresponding period a year ago, buoyed by robust refining margins and lower LPG under-recoveries.

The gross refining margin (GRM) for Indian Oil Corporation (IOC) quadrupled in the third quarter, while that of Bharat Petroleum (BPCL) grew over two-fold, aided by softer crude and stronger product cracks.

According to data from ICICI Securities, GRM for IOC stood at $12.2 per barrel, up from $3 in the year-ago period. It grew to $13.3 from $5.6 for BPCL, and to $8.9 from $6 for Hindustan Petroleum (HPCL).


During the October-December quarter, crude oil benchmark Brent averaged $63.8 per barrel, down from $74.9 in the year-ago period.

The crack spread-the difference between the price of crude oil and those of its refined products-on diesel, petrol and aviation turbine fuel improved from a year earlier.

The benchmark Singapore GRM increased to $6.2 per barrel in the December quarter from $4.9 in the year-earlier period.

Marketing margins muted

The three state-run refiners, however, experienced a decline in marketing margins as pump prices remained the same.

The retail margin on petrol was ₹7.8 per litre during the December quarter, down from ₹12 per litre a year ago, showed ICICI Securities data. Retail margin on diesel was ₹2.9 per litre, down from ₹8.

IOC posted a profit of ₹12,126 crore during the quarter under review, while BPCL and HPCL reported profits of ₹7,545 crore and ₹4,072 crore, respectively.

Compensation from govt

For the three months ended December, the government also started paying the promised compensation to the oil marketing companies for selling cooking gas below market rates. Receipt of compensation, as well as lower liquefied petroleum gas (LPG) prices during the quarter, aided companies' earnings.

Inventory gains, too, significantly aided IOC's profit.

Of the more than one lakh petrol pumps in the country, 90% are operated by the state-run OMCs. Reliance Industries and Nayara Energy account for the remaining ones.