Russian oil: IndianOil to abide by all international sanctions

New Delhi: State-run Indian Oil Corp.’s standalone net profit surged multifold in the September quarter, riding on higher refinery margins and better sales.

The company reported a net profit of ₹7,610.45 crore in the second quarter, up from ₹180.01 crore a year earlier, according to its exchange filings. Its revenue from operations was ₹2.03 trillion during the quarter, around 4% higher year-on-year.

The surge in profits was aided by strong performance and growth in refining margins, chairman and managing director Arvinder Singh Sahney told reporters.

The company reported a standalone net profit of ₹5,688.60 crore in the previous quarter. In Q2 of FY25, the revenue was lower than expenses, and an exceptional income of ₹1,157.30 crore had helped the company report a profit of ₹180.01 crore.

The gross refining margins in the second quarter of FY26 stood at $10 per barrel, compared with $2.25 per barrel in the second quarter of last fiscal (FY25).

On a consolidated basis, the state-run oil marketing and refining major's net profit was nearly ₹8,190.86 crore for the second quarter of FY26, against a loss of ₹448.78 crore in the corresponding quarter of the last fiscal.

‘IndianOil to abide by international sanctions’

When asked about the latest US sanctions on Russian oil suppliers Rosneft and Lukoil and their impact on Indian refiners, Sahney said, "We will abide by all the sanctions that are in place by the international community."

Currently, Russian oil comprises 19-20% of the company’s overall crude import basket. Last week, the US imposed sanctions on Rosneft and Lukoil, which supply about 1 million barrels per day (bpd) out of the 1.8 million bpd of Russian oil coming into India.

India’s public and private refiners are expected to reduce their imports from Russia after the sanctions take effect on 22 November.

Mint on 23 October reported that the latest sanctions are likely to force Indian refiners to buy from West Asian and other sources that do not offer discounts, increasing the country’s import bill.

Shares of IndianOil closed 3.19% higher on the BSE at ₹155.15 on Monday compared with a 0.67% rise in the benchmark Sensex.