IOC Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹2,66,407 Cr
verified against source
Revenue YoY
26.2%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Indian Oil reported a net loss of Rs 2,661 crore for Q1 FY27 versus a PAT of Rs 5,689 crore in Q1 FY26, driven by geopolitical tensions causing crude prices to spike ~21% QoQ to $100.74/bbl (Indian basket). Revenue from operations rose 26% YoY to Rs 2.76 lakh crore on higher product prices, though the company absorbed some cost increases to shield domestic consumers. Inventory gains of ~Rs 15,000 crore on finished goods partially offset crude inventory losses of $3-4/barrel. Refinery throughput remained robust at 19.22 MMT (109.4% utilization), while pipeline achieved record 28.5 MMT. Management expects the Rs 90,000 crore capex wave (Panipat, Gujarat, Barauni expansions ~94-95% complete) to commission by end-2026, positioning for throughput of 77 MMT in FY27 rising to 85 MMT in FY28. LPG under-recovery has moderated from Rs 665/cylinder in June to ~Rs 250/cylinder in Q2 on declining Saudi CP. Key risks include renewed Middle East escalation, potential US sanctions on Russian/Iranian crude, and working capital intensity as borrowings jumped Rs 31,000 crore in one quarter. The market share defense strategy and project commissioning timeline remain critical near-term catalysts.
Colored figures show movement against the previous available record.
Guidance to track
- Company expects refinery throughput to reach 77 MMT in FY27 and 85 MMT in FY28 as expansion projects at Panipat, Gujarat and Barauni (totaling ~Rs 90,000 crore capex) commission by end-2026.
- Budgeted capex target for the full year is Rs 32,700 crore, encompassing investments across refining, petrochemicals, pipelines, renewables and shipping. Projects are evaluated on profitability basis.
- Wholly-owned subsidiary Terravana (Parakle) targets 18 GW renewable capacity. Already received connectivity approval for 2.6 GW and has 4-5 GW under various stages of development.
- Building on Rs 2,000 crore savings in FY26, SPRING 2.0 initiative targets additional Rs 2,000-2,500 crore savings through operational efficiency, logistics optimization and market share gains.
Risks flagged
- Recent military escalations have brought Red Sea and Strait of Hormuz security into focus. Crude prices have already started trending upward again after July moderation. Any supply disruption would directly impact India's energy security given 84% spot procurement reliance.
- A bill advancing in the US Senate could target Russian and Iranian oil exports. IOC currently sources significant volumes from Russia (~50%+), Venezuela, and other non-Middle East regions. Implementation timeline remains unclear but poses supply diversification risk.
- LPG under-recovery per cylinder swung from Rs 665 in June to Rs 475 in July to expected Rs 250 in Q2, highly dependent on Saudi CP movements. Government compensation timing and quantum remain uncertain despite past support.
- Borrowings jumped Rs 31,000 crore in one quarter to Rs 1,41,453 crore as of June 30. While debt-equity remains manageable at 0.71, the interest cost has increased versus pre-war levels, creating margin pressure.
Key quotes
- Our reported GRM is $15.59 per gallon and if you add SAD it would be around $36 per barrel for Indian Oil corporation that would have been the gross number if we were to include it.
- Going forward renewables will be one sector where we will have to invest. We have a target of 18 GW renewable power in next 3 to 4 years. Petrochemicals and fuel ammonia are the two sectors which will take my major capex.
- On inventory on the finished good side I have an inventory gain because the quotes in the international market of gasoline all the products went up. So there we had an inventory gain but on crude we had a marginal inventory loss.
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