Indian Oil (IOC) Q1 25/26 earnings summary

Executive summary

• Q1 FY 2026 profit after tax was INR 5,689 crores, down from INR 7,265 crores in the previous quarter, but up 115% year-over-year from INR 2,643.18 crores; revenue from operations rose to INR 218,608 crores, a 1.2% increase year-over-year.

• Operational performance was robust, with the highest ever quarterly sales volume of 26.33 MMT and strong throughput across business segments.

• The company is pursuing strategic initiatives to expand refining capacity, petrochemical integration, and clean energy investments, aiming to increase its national energy market share from 9% to 12.5% by 2050.

• Board approved unaudited financial results for the quarter ended 30 June 2025.

Financial highlights

• Inventory loss of INR 6,500 crores in Q1 FY 2026, compared to a gain in the previous quarter.

• EBITDA for Q1 FY 2026 was INR 13,220 crores, up from INR 8,171.73 crores year-over-year but down from INR 14,746 crores in Q4 FY 2025.

• Revenue from operations increased to INR 218,608 crores from INR 217,725 crores in Q4 FY 2025 and INR 215,989 crores in Q1 FY 2025.

• Borrowings decreased to INR 121,545 crores as of June 30, 2025, from INR 134,466 crores at March 31, 2025.

• CapEx for the quarter was INR 6,270 crores; full-year CapEx budget is INR 33,494 crores.

Outlook and guidance

• Targeting an increase in energy market share to 12.5% by 2050 and petrochemical integration to 15% by 2030-32.

• CapEx run rate expected to be around INR 30,000 crores annually over the next 4-5 years, with a focus on renewables and gas.

• Retail outlet additions will gradually decrease as market matures.

• Union cabinet approved INR 30,000 crores compensation to public sector OMCs for LPG under-recoveries; company’s share not yet recognized in Q1 FY26.