The strong quarterly performance comes after a weak base last year, when margins were under pressure due to volatile crude oil prices, inventory losses and higher operating costs. The current quarter benefited from relatively stable crude oil prices, an improving refining economy and improved throughput of key assets.IOC’s revenue mix for the quarter continued to be dominated by its core petroleum products business. Revenue from the petroleum products segment stood at Rs 2.17 lakh crore, accounting for the bulk of the company’s revenue during the quarter. The petrochemical segment reported revenues of Rs 6,936 crore, while the gas segment contributed Rs 11,691 crore.
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Revenue from other operations stood at Rs 431 crore during the quarter.
Total expenses during the quarter stood at Rs 2.16 lakh crore, up from Rs 2.15 lakh crore in Q3FY25, reflecting continued pressure from raw material costs and operating costs. Despite higher costs, profit before tax (PBT) rose to Rs 15,992 crore from Rs 3,470 crore in the year-ago quarter, helped by better refining and marketing performance.
IOC’s earnings performance in Q3FY26 marks a sharp turnaround from last year’s subdued profitability, when the company was hit by weaker refining margins, inventory losses and cost pressures. The strong profit increase underlines the operating leverage inherent in oil marketing companies as refining and marketing margins improve.
The performance in the December quarter also comes on the back of improving sentiment around PSU oil companies, supported by stable crude oil prices, better fuel price visibility and improving global refining margins.
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