New Delhi: Indian Oil Corporation Limited (IOC), India’s largest oil marketing company, reported a standalone net loss of ₹2,662.37 crore for the first quarter of FY27, despite posting a 26.2% year-on-year increase in revenue from operations to ₹2,75,971.77 crore.
The company said profitability was impacted by high input costs and inventory losses, although government compensation for domestic LPG under-recoveries provided partial relief during the quarter.
Q1 FY27 Standalone Financial Performance
Indian Oil reported strong revenue growth but slipped into losses during the April-June 2026 quarter.
Key financial highlights:
- Revenue from Operations: ₹2,75,971.77 crore (up 26.2% YoY)
- Total Income: ₹2,76,357 crore (up 26.1% YoY)
- Total Expenses: ₹2,79,631 crore
- Loss Before Tax: ₹3,274 crore
- Net Loss: ₹2,662.37 crore
- Total Comprehensive Loss: ₹6,477 crore
- Basic EPS: ₹(1.93) compared with ₹4.13 in Q1 FY26
The decline in earnings reflects pressure on refining and marketing margins amid elevated input costs.
Consolidated Results Also Turn Negative
On a consolidated basis, Indian Oil also reported losses despite higher revenues.
Consolidated highlights:
- Revenue from Operations: ₹2,81,933 crore (up 27.1% YoY)
- Total Income: ₹2,82,379 crore
- Loss Before Tax: ₹933 crore
- Net Loss: ₹1,141 crore
- Net Loss Attributable to Parent: ₹1,631 crore
- Basic EPS: ₹(1.18)
₹3,621 Crore LPG Compensation Recognised During Q1
Indian Oil recognised ₹3,621.51 crore as revenue during Q1 FY27 towards compensation for domestic LPG under-recoveries.
The Ministry of Petroleum and Natural Gas had approved ₹14,486 crore compensation covering LPG under-recoveries incurred up to March 31, 2025, and expected up to March 31, 2026.
Key points:
- Total approved LPG compensation: ₹14,486 crore
- Compensation being released in 12 equal monthly instalments beginning November 2025
- ₹3,621.51 crore recognised during Q1 FY27
- Cumulative net negative buffer as of June 30, 2026: ₹29,729.95 crore
The compensation helped offset part of the losses arising from the company’s marketing operations.
Operational Performance Remains Strong
Despite pressure on profitability, Indian Oil recorded steady operational growth across key business areas.
Physical performance:
- Domestic Product Sales: 25.25 MMT (up 1.1%)
- Export Sales: 0.96 MMT (down 29.4%)
- Refinery Throughput: 19.17 MMT (up 2.6%)
- Pipeline Throughput: 28.55 MMT (up 8.7%)
The higher refinery output and pipeline throughput indicate stable operational performance during the quarter.
Petroleum Business Reports Loss, Gas Segment Remains Profitable
Indian Oil’s business segments delivered mixed performance during the quarter.
Segment-wise performance:
- Petroleum Products
- Revenue: ₹2,59,772 crore
- Segment Result: Loss of ₹2,873 crore
- Petrochemicals
- Revenue: ₹9,517 crore
- Profit: ₹217 crore
- Gas
- Revenue: ₹14,481 crore
- Profit: ₹526 crore
- Other Business Activities
- Revenue: ₹515 crore
- Segment Result: Loss of ₹2 crore
Losses in the petroleum products segment remained the primary reason for the weak overall financial performance.
Board Composition Issue Highlighted
Indian Oil disclosed that throughout the reporting period it did not have the minimum number of Independent Directors, including one Woman Independent Director, as required under the Companies Act and SEBI (LODR) Regulations.
As a result:
- Audit Committee was discontinued.
- Nomination & Remuneration Committee was discontinued.
- CSR Committee and other mandatory committees were also discontinued.
- These committees have not yet been reconstituted.
The statutory auditors, however, issued an unmodified audit conclusion and clarified that their opinion was not modified because of this matter.
Financial Ratios Show Margin Pressure
Key standalone financial indicators reflected weaker profitability during the quarter.
Financial ratios:
- Debt-Equity Ratio: 0.71x
- Debt Service Coverage Ratio: 0.62x
- Interest Coverage Ratio: 1.23x
- Net Worth: ₹1,98,067 crore
- Current Ratio: 0.72x
- Operating Margin: -0.74%
- Net Profit Margin: -0.96%
Debt Position and Auditor’s Observations
Indian Oil reported ₹17,000 crore of outstanding unsecured non-convertible debentures as on June 30, 2026.
The company stated that:
- There was no deviation in utilisation of issue proceeds.
- No default existed on loans or debt securities.
- Outstanding debentures remain unsecured.
The statutory auditors issued an unmodified report on both standalone and consolidated financial statements while drawing attention to management-certified financial information of certain joint operations, board composition issues and restated Q4 FY26 figures.
Outlook
Indian Oil entered FY27 with robust revenue growth but remained under significant pressure from higher crude input costs, inventory losses and weak refining margins. While government LPG compensation provided meaningful support during the quarter, profitability remained negative.
Going forward, investors will closely monitor refining margins, fuel marketing performance, crude price trends and the appointment of Independent Directors to restore the company’s board committees.
About Indian Oil Corporation
Indian Oil Corporation (IOC) is a Maharatna public sector undertaking (PSU) under the Government of India and one of the country’s largest energy companies. The company operates across refining, fuel marketing, pipelines, natural gas, and LPG distribution sectors. With a widespread network across India, Indian Oil plays a major role in meeting the nation’s energy needs while supporting initiatives focused on sustainability and cleaner energy solutions.
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