Indian Oil (IOC) Q1 26/27 earnings summary

Executive summary

• Reported a standalone net loss of INR 2,661 crore for Q1 FY 2026/2027, compared to a profit of INR 11,378 crore in the previous quarter and INR 5,689 crore in the same quarter last year, mainly due to volatile crude prices and weak marketing margins.

• Revenue from operations rose to INR 275,972 crore, up from INR 232,855 crore sequentially and INR 218,608 crore year-over-year, driven by higher product prices.

• Maintained uninterrupted energy supplies by diversifying crude sourcing, with spot imports rising to 84% from 51% last year.

• Operational resilience and supply chain agility highlighted as key strengths amid global volatility.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2026 were reviewed and approved by the Board on 31 July 2026.

Financial highlights

• Standalone net loss for Q1 FY27 was INR 2,661 crore, compared to net profit of INR 5,689 crore in Q1 FY26.

• Revenue from operations increased 18.5% sequentially and 26.3% year-over-year.

• Gross refining margin (GRM) reported at $15.59/bbl; normalized GRM excluding SAED would be around $36/bbl.

• Borrowings rose to INR 141,453 crore as of June 30, 2026, from INR 110,668 crore at March 31, 2026, mainly due to higher working capital needs.

• Earnings per share (EPS) for Q1 FY27 was negative at INR (1.93) standalone.

Outlook and guidance

• CapEx guidance of INR 30,000–40,000 crore annually for the next 2–3 years, with major focus on petrochemicals and renewables.

• Major refinery and pipeline expansion projects are on track, with key completions expected between August and December 2026.

• Petrochemical intensity targeted to rise from 6.5% to 15% over the next five to six years, with INR 100,000 crore CapEx planned.

• Renewable energy capacity target of 18 GW in the next 3–4 years.

• Government compensation for LPG under-recoveries is being recognized monthly, with INR 3,621.51 crore accrued for Q1 FY27.