What is driving the profit surge for Indian oil companies?

Stronger marketing margins are expected to significantly boost operating profits for Indian oil companies this fiscal year.

How will increased profits affect capital expenditure for Indian OMCs?

Higher cash accruals from improved profitability will support planned capital expenditures for expansion and domestic projects.

What is the outlook for crude oil prices affecting Indian oil companies?

Crude oil prices are expected to soften, impacting refining margins while unchanged retail prices boost marketing margins.

Home / Business and Economy / India Oil Firms Eye 50%+ Profit Surge

India Oil Firms Eye 50%+ Profit Surge

21 Nov, 2025

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Summary

Operating profits for Indian oil companies to surge over 50%.
Marketing margins expected to lift overall operating margins significantly.
Stronger cash flow will support planned capital expenditures.

Indian oil marketing companies are poised for a robust financial recovery this fiscal year, with operating profits predicted to surge by more than 50%. This optimistic outlook is fueled by strengthening marketing margins, which are expected to compensate for a decline in refining margins as global demand for fossil fuels moderates due to the energy transition.

The anticipated increase in profitability will significantly boost cash accruals, projected to reach between ₹75,000-80,000 crore. This enhanced cash flow will adequately support the sector's substantial planned capital expenditures, estimated at ₹90,000 crore, with a focus on brownfield expansions and projects driven by domestic demand.

Analysts note that while crude oil prices may soften, leading to modest refining margins, unchanged retail fuel prices will substantially improve marketing margins. This financial strengthening is expected to ease leverage ratios and limit reliance on external debt, supported by the strategic importance and government ownership of these companies.