Indian Oil Reports First Quarterly Loss in 15 Quarters

Indian Oil Corporation reported its first quarterly loss in 15 quarters for the period ended June 30, 2026. The state-run refiner posted a consolidated net loss of ₹1,141.09 crore, compared to a profit of ₹5,689 crore in the prior-year quarter. The company attributed the decline in profitability to elevated crude oil prices resulting from conflict in West Asia, which pushed fuel marketing margins into negative territory.

Despite the financial loss, revenue from operations rose approximately 26% to over ₹2.75 trillion. This growth was supported by a ₹3,622-crore compensation from the government for liquefied petroleum gas losses. The company also achieved record-high first-quarter crude throughput of 19.165 million metric tonnes and record sales of petrol and diesel. Similar losses were reported by other state-run refiners, Bharat Petroleum and Hindustan Petroleum.

To manage its financial position, the company raised $500 million through a five-year long-term external commercial borrowing. This was executed using a concessional dollar-rupee swap window provided by the Reserve Bank of India to encourage dollar inflows. The company may seek additional funds under this window before it closes in December, while maintaining crude oil supplies for 45 to 50 days.