IOC posts ₹2,661 crore Q1 loss as refining margins collapse

Indian Oil reported a ₹2,661.3 crore standalone loss for the June quarter despite revenue rising to ₹2.76 lakh crore. EBITDA fell to ₹1,947 crore and margin narrowed to 1% from 10% sequentially; ₹3,621.5 crore in LPG compensation partly cushioned the hit.

— Source publishedFri, 31 Jul, 2026, 18:18 IST·First seen Fri, 31 Jul, 2026, 18:27 IST·Source CNBC-TV18 · Companies

What happened

Indian Oil Corporation (IOC) · Indian Oil posted a ₹2,661.3 crore Q1 standalone loss as refining and marketing margins collapsed despite higher revenue.

Key facts

  • Standalone net loss: ₹2,661.3 crore in Q1 ended June
  • CNBC-TV18 poll estimate: ₹1,824 crore loss
  • March-quarter net profit: ₹11,377 crore
  • Revenue: ₹2.76 lakh crore
  • Revenue in March quarter: ₹2.33 lakh crore
  • EBITDA: ₹1,947 crore versus ₹20,716 crore sequentially
  • EBITDA margin: 1% versus 10% sequentially
  • Pre-tax loss: ₹3,274.3 crore
  • LPG compensation recognised: ₹3,621.5 crore
  • Net negative LPG buffer outstanding: ₹29,729.95 crore as of June 30
  • Share price: ₹139.99
  • Stock decline in 2026: nearly 16%

Why this matters

Margin compression increases the strategic value of acquisitions or partnerships that diversify IOC beyond cyclical refining into higher-margin convenience, mobility and energy-transition businesses.

What to watch

  • Singapore GRM and diesel, petrol, and ATF crack spreads.
  • Global crude-price direction and IOC inventory gain or loss disclosures.
  • Indian retail fuel-price revisions versus international product-price movements.
  • New LPG compensation announcements and the pace of government receivable settlement.
  • Quarterly marketing margins, refinery throughput, utilization, and EBITDA-margin recovery.
  • Any capex deferrals, higher borrowing, or working-capital deterioration.
  • Emphasize fuel-marketing profitability, inventory gains or losses, and LPG compensation in investor communication.
  • Tighten refinery utilization, crude sourcing, product yields, and operating-cost controls to protect cash flow.
  • Prioritize high-return retail, pipeline, and downstream projects while pacing discretionary capital expenditure.
  • Seek timely subsidy and under-recovery settlements to contain working-capital strain.