IOC swings to Rs 1,141.09 cr loss as costs outrun sales
Revenue rose +38.51% YoY, but faster expense growth and high interest and depreciation charges pushed the consolidated result into a loss.
Filed 31 Jul 2026, 17:43 IST · after market close · Indian Oil Corporation Ltd (IOC)
Key takeaways
- IOC’s consolidated net profit swung to a loss of Rs 1,141.09 cr in Q1FY27 from a profit of Rs 6,808.12 cr a year earlier.
- Revenue grew +38.51% YoY, but expenses grew +46.50%, cutting operating margin by 5.38 percentage points to 1.52%.
- IOC’s 1.52% operating margin was 12.93 percentage points below the 14.45% median of 11 reporting Energy peers.
Price around the results
Higher revenue did not translate into profit
IOC’s consolidated revenue grew +38.51% YoY and +27.90% QoQ, but operating profit fell -69.38% YoY and -83.62% QoQ. The revenue increase was therefore overwhelmed by costs, leaving profit before tax at a loss of Rs 932.59 cr versus a profit of Rs 8,750.48 cr a year earlier.
Costs and fixed charges compressed the margin
Expenses grew +46.50% YoY and +42.98% QoQ, faster than revenue in both comparisons, cutting operating margin by 5.38 percentage points YoY and 10.39 percentage points QoQ. Interest fell -16.45% YoY and -8.01% QoQ, but depreciation rose +5.49% YoY; together, these charges more than absorbed operating profit. Other income was equivalent to -122.57% of pre-tax profit because the pre-tax result was negative, while the Rs 208.50 cr tax charge produced a -22.36% tax rate and did not flatter earnings.
Margin fell sharply after four quarters of improvement
Operating margin had risen from 6.90% in Q1FY26 to 11.91% in Q4FY26 before dropping to 1.52% in Q1FY27. IOC’s margin was 12.93 percentage points below the 14.45% median for 11 Energy peers that had reported, placing it third from the bottom.
Results were filed after market close
The results were filed after market close, so there was no immediate stock reaction to assess. Across the eight recent result reactions, IOC rose three times and fell five times, with a median absolute move of 1.73%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,66,407 cr | ₹2,08,289 cr | +27.90% | +38.51% |
| Other income | ₹1,143 cr | ₹2,424 cr | -52.85% | -33.99% |
| Expenses | ₹2,62,345 cr | ₹1,83,485 cr | +42.98% | +46.50% |
| Operating profit | ₹4,062 cr | ₹24,804 cr | -83.62% | -69.38% |
| Operating margin (%) | 1.52% | 11.91% | — | — |
| Interest | ₹1,730 cr | ₹1,880 cr | -8.01% | -16.45% |
| Depreciation | ₹4,408 cr | ₹5,557 cr | -20.67% | +5.49% |
| Profit before tax | ₹-933 cr | ₹19,791 cr | — | — |
| Tax | ₹209 cr | ₹4,615 cr | -95.48% | -89.27% |
| Net profit | ₹-1,141 cr | ₹15,176 cr | — | — |
| EPS (₹) | ₹-1.18 | ₹10.50 | — | — |
Operating margin of 1.52% compares with a Energy sector median of 14.45% across 11 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 1.52% while expense growth remains below the +38.51% YoY revenue growth rate.
- Whether interest stays below Rs 1,729.53 cr and depreciation below Rs 4,408.15 cr.
- Whether operating margin moves back above the 11.91% recorded in Q4FY26 or narrows its gap to the 14.45% Energy-peer median.