Archive · 21 Nov 2025
Indian Oil Companies' Profits Surge, But Economic Recovery Remains Shallow
Oil companies in India are expected to make much more money this year because of stronger sales of petrol and diesel.
However, the overall economy is only growing a little bit, with many companies still struggling.
The recovery is happening slowly, with only some small and medium-sized companies doing well.
Big banks and financial companies are not doing as well as before.
Experts say the recovery is not as strong as it seems because many companies are only doing a little bit better, not much.
They hope the economy will improve more next year.
Operating profits of oil marketing companies (OMCs) to jump over 50% to $18-20 per barrel in FY26
India Inc's net profit rose 34% in Q2 FY26, driven by small- and mid-cap outperformance and sector-specific boosts
Strong non-core income, not broad-based demand upturn, drove India Inc's Q2 performance
BFSI sector's earnings remain subdued due to weak rural incomes and soft mass-market consumption
Economic recovery remains shallow, with a broad-based rebound still missing
- Who
- Oil marketing companies (OMCs), India Inc
- What
- OMCs' profits surged, India Inc's net profit rose 34% in Q2 FY26
- When
- FY26 (current financial year), Q2 FY26 (July-September 2025)
- Where
- India
- Why
- Stronger marketing margins for OMCs, small- and mid-cap outperformance, sector-specific boosts for India Inc
Optimistic View
Cautious View
Earnings Growth
Optimistic View
Strongest net-profit results in nine quarters
Cautious View
Driven by non-core income, not broad-based demand upturn
Economic Recovery
Optimistic View
Selective recovery with broad-based rebound still missing
Cautious View
Many companies still struggling, recovery shallow
- India Inc's net profit growth in Q2 FY26
- 34%
- India Inc's operational revenue growth in Q2 FY26
- 6.5% year-on-year, 2% sequentially
- Other income growth for India Inc in Q2 FY26
- Almost 50% year-on-year, 36% sequentially
- BFSI sector's net profit growth in Q2 FY26
- 8%
Sources
Oil PSUs LPG losses stands at ₹53,700 crore, likely to get government subsidy of ₹30,000 crore: Report
City gas distributors set for strong margin recovery in FY26: Crisil lists 3 reasons why
India Inc’s strong Q2 earnings mask a shallow recovery
Operating profit of oil marketers set to jump over 50% to $18-20 per barrel in FY26: Crisil Ratings