Indian Oil Q1 Profit Falls 22% to ₹5,689 Crore, Misses Estimates; Margins Decline

Indian Oil Corporation Ltd. (IOCL) reported a 22% year-on-year (YoY) decline in net profit for the June quarter, coming in at ₹5,689 crore, below the CNBC-TV18 poll estimate of ₹7,374 crore.
The revenue for the quarter stood at ₹1.93 lakh crore, beating the survey expectation of ₹1.8 lakh crore, but still marking a 1% decline compared to the previous quarter.

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EBITDA and Margins Under Pressure

Earnings before interest, tax, depreciation, and amortization (EBITDA) dropped 7% to ₹15,310 crore in Q1, missing analyst forecasts.
The EBITDA margin slipped to 6.53%, down from 7% in the previous quarter, and well below CNBC-TV18’s estimate of 8.5%.

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Weaker Gross Refining Margins

IOCL’s gross refining margin (GRM) — the difference between the value of petroleum products and crude oil — was reported at $7.15 per barrel, lower than market expectations.
This margin compression comes amid volatile crude prices and weaker demand in certain segments.

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Stock Reaction

Following the earnings announcement, IOCL shares rose 1.3% to ₹140.64 in intraday trade.
However, the stock has declined 6.5% over the past month, reflecting investor caution amid falling margins.

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Market Outlook

Analysts suggest that while revenue growth remains resilient, margin pressures and lower GRMs could weigh on near-term earnings. IOCL may need to focus on refining efficiency and product diversification to maintain profitability in a volatile global oil market.