State-run Indian Oil Corporation on Friday posted a consolidated net loss of ₹1,141.09 crore in the June quarter, against a profit of ₹6,808.12 crore a year earlier, as suppressed marketing margins on petroleum products outweighed gains from stronger refining margins.
The country’s largest fuel retailer, however, reported a 27% rise in revenue from operations to ₹2.82 lakh crore, from ₹2.22 lakh crore in Q1FY26. Total income increased to ₹2,82,379 crore, while expenditure climbed to ₹2,84,009 crore.
Indian Oil’s petroleum products business swung to a segment loss of ₹1,705 crore, compared with a profit of ₹9,070 crore in the year-ago quarter. Petrochemicals reported a ₹217-crore profit, while the gas segment earned ₹526 crore.
On a standalone basis, the company recorded a net loss of ₹2,662 crore, against a profit of ₹5,689 crore a year ago. Its operating margin turned negative at 0.74%, compared with 4.01% in Q1FY26, while the net margin fell to negative 0.96% from 2.60%.
Operational volumes remained firm. Refinery throughput rose nearly 3% to 19.165 million tonnes, from 18.683 million tonnes. Domestic product sales increased to 25.252 million tonnes from 24.973 million tonnes, while exports declined 29% to 0.959 million tonnes.
The losses came amid sharp oil-price volatility during the West Asia conflict, which raised benchmark prices, freight and logistical costs and weakened fuel-marketing margins before retail prices were increased. Higher refining margins partially offset the impact.
Indian Oil’s cumulative negative LPG buffer stood at ₹29,729.95 crore as of June 30. The government had approved compensation of ₹14,486 crore for domestic LPG under-recoveries, payable in 12 monthly instalments.
“Instalment for the period from April 2026 to June 2026 aggregating to ₹3,621.51 crore has been recognised as revenue from operations,” the company said, adding that the negative buffer had been reduced to that extent.
The company’s consolidated debt-equity ratio increased to 0.69 from 0.65 a year earlier, while its net profit margin fell to negative 0.40%, from 3.07%.