Earnings Review
IOC posts loss in Apr-Jun but much smaller than Street view
This story was originally published at 21:25 IST on 31 July 2026
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--IOC Apr-Jun net loss INR 26.61 bln
--Analysts saw IOC Apr-Jun net loss at INR 183.30 bln
--IOC Apr-Jun revenue INR 2.76 tln
--Analysts saw IOC Apr-Jun revenue at INR 2.41 tln
--IOC Apr-Jun net loss INR 26.61 bln vs PAT INR 56.89 bln yr ago
--IOC Apr-Jun revenue INR 2.76 tln vs INR 2.19 tln year ago
--IOC Apr-Jun total expenses INR 2.80 tln vs INR 2.12 tln year ago
--IOC Apr-Jun operating margin (-)0.74% vs 4.01% year ago
--IOC Apr-Jun petroleum pdts revenue INR 2.60 tln vs INR 2.06 tln year ago
--IOC Apr-Jun petrochemicals revenue INR 95.17 bln vs INR 67.64 bln year ago
--IOC Apr-Jun gas revenue INR 144.81 bln vs INR 103.09 bln year ago
--IOC Apr-Jun refineries throughput 19.17 mln tn vs 18.68 mln tn year ago
--IOC Apr-Jun pipelines throughput 28.55 mln tn vs 26.26 mln tn year ago
--IOC Apr-Jun domestic sales 25.25 mln tn vs 24.97 mln tn year ago
By Sunil Raghu
AHMEDABAD – Indian Oil Corp. Ltd. recorded a net loss for the June quarter as the war in West Asia since Feb. 28 set global crude oil prices on fire and forced India's biggest state-owned oil marketing company to buy its raw material at much higher rates. This saw its cost of material consumed jumping substantially higher year-on-year. The company's inventory costs too increased. This offset the jump in its revenues for the June quarter. The only silver lining was that the loss was way below what the Street had expected.
The company recorded a net loss of INR 26.61 billion for the quarter, from a net profit of INR 56.89 billion in the year-ago quarter. The loss was much smaller than analysts' estimate of a loss of INR 183.30 billion. The revenue from operations for the quarter jumped 26% on year to INR 2.76 trillion. The company's top line, net of excise duty, was INR 2.62 trillion. Analysts had expected the company's revenue for the quarter to grow to INR 2.41 trillion.
This is the first year-on-year fall in net profit for Indian Oil in six quarters. The company had seen its net profit rise for the five preceding quarters. The company's revenue rose year-on-year for the fourth successive quarter after nine quarters of a fall. The rise in revenue is also the highest year-on-year since Jul-Sept 2022, when it rose over 53%.
Indian Oil, with a refining capacity of nearly 81 million tonnes per annum and a fuel retailing network of more than 40,000 outlets, saw domestic sales of 25.25 million tonnes in the June quarter, up from 24.97 million tonnes in the year-ago quarter but down from 26.05 million tonnes in the March quarter.
Pipeline throughput for the quarter was 28.55 million tonnes, against 26.26 million tonnes in the year-ago period. Refinery throughput for the quarter rose to 19.17 million tonnes from 18.68 million tonnes in the corresponding period a year ago, the company said.
Indian Oil's revenue from petrochemicals jumped nearly 41% on year to INR 95.17 billion and the revenue from petroleum products rose over 26% on year to INR 2.60 trillion. The company's revenue from natural gas was nearly INR 144.81 billion, up over 40% from INR 103.09 billion a year ago.
The oil marketing company's operating margin slumped to a negative 0.74%, thanks to higher crude oil prices. The company reported 32% year-on-year rise in total expenses for the quarter to INR 2.80 trillion, up from INR 2.12 trillion a year ago.
The company had an inventory loss of INR 948.58 billion for the quarter. The cost of raw materials consumed in the June quarter jumped 77% to INR 1.71 trillion. The employee cost was over INR 24 billion, down nearly 17% from over INR 29 billion in the June quarter a year ago. Finance costs were also down over 18% on year at over INR 16.1 billion.
Indian Oil said that as of Jun. 30, it had an outgo of INR 297.30 billion on sale of liquefied petroleum gas cylinders to customers at discounted price on government directive. Of this, it has received INR 36.21 billion, which it has recognised as revenue for operations in the books of accounts. The government has informed the company that it will pay compensation of INR 144.9 billion towards under-recoveries on the sale of domestic LPG up to Mar. 31, 2025, and likely to be incurred up to Mar. 31, 2026. Compensation for the under-recoveries will be disbursed in 12 equal monthly instalments from November, the company said in the notes accompanying its earnings filing.
Friday, shares of the company closed at INR 140.17 on the National Stock Exchange, up slightly from Thursday. The company released its June quarter earnings after market hours. End
Edited by Rajeev Pai
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