Indian Oil posts Rs 2,661 crore Q1 loss as EBITDA margin falls to 0.7%

Indian Oil Corporation reported a Q1 consolidated net loss of Rs 2,661 crore, versus a Rs 11,378 crore profit in the preceding quarter. Revenue rose 26.2% sequentially to Rs 2.62 lakh crore, but EBITDA fell 90.6% to Rs 1,947 crore as refining and marketing margins compressed.

— Source publishedFri, 31 Jul, 2026, 18:00 IST·First seen Fri, 31 Jul, 2026, 20:02 IST·Source NDTV Profit

What happened

Indian Oil Corporation (IOC) · Indian Oil reported a Q1 consolidated loss of Rs 2,661 crore, far narrower than expected, as revenue rose 26.2% sequentially to

Key facts

  • Consolidated net loss: Rs 2,661 crore
  • Previous-quarter net profit: Rs 11,378 crore
  • Revenue from operations: Rs 2.62 lakh crore, up 26.2% QoQ
  • Previous-quarter revenue: Rs 2.08 lakh crore
  • EBITDA: Rs 1,947 crore, down 90.6% QoQ
  • Previous-quarter EBITDA: Rs 20,716 crore
  • EBITDA margin: 0.7%, versus 10% previous quarter
  • Share price: Rs 140.17, up 0.16%

Why this matters

Compressed core fuel margins strengthen the strategic case for Indian Oil to diversify into higher-margin adjacencies, downstream value-added products and resilient non-fuel revenue streams.

What to watch

  • Quarterly gross refining margin and marketing-margin disclosures.
  • Crude oil and product-price volatility, particularly the size and duration of inventory gains or losses.
  • Any central-government compensation, subsidy, excise-duty, or fuel-pricing-policy announcements.
  • Retail price movements for petrol, diesel, LPG, and ATF relative to international product benchmarks.
  • Operating cash flow, working-capital movement, net debt, and capex guidance in the next earnings release.
  • Changes in domestic fuel-demand growth and competitive pricing actions by other state-owned oil marketers.
  • Prioritize working-capital control and inventory-risk management as high revenue growth fails to convert into cash earnings.
  • Moderate discretionary capex or sequence projects toward highest-return refining, petrochemical, pipeline, and retail investments.
  • Seek faster pass-through in commercial fuel pricing where possible while maintaining market share in core retail fuels.
  • Emphasize non-fuel retail, lubricants, petrochemicals, and premium products to reduce dependence on regulated fuel margins.
  • Potentially revise shareholder-return expectations if cash generation remains below investment requirements.