I O C L Q1 FY27 Results (NSE: IOC)
Signal: Slipped to loss
The read
The sharp swing to a consolidated net loss of ₹1,631 Cr (vs profit of ₹4,406 Cr a year ago) reflects a severe margin squeeze in refining and marketing as input costs overwhelmed revenue growth. EBITDA margin collapsed to 1.6% from 5.3%. Physical volumes (refinery throughput +2.6% YoY) were healthy but insufficient to offset the cost spike. The standalone Petroleum Products segment was the primary culprit. The company's debt service coverage ratio fell to 0.62x, signaling near-term liquidity stress, and the board composition non-compliance is a governance red flag.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,81,933.07 Cr | 27.1% | 19.0% |
| EBIT | ₹99.81 Cr | N/A | |
| Net profit | ₹-1,630.74 Cr | -137.0% | |
| EPS | ₹-1.18 | -139.7% | |
| EBIT margin | 0.0% |
P&L walk
Consolidated revenue grew 27.1% YoY to ₹2,81,933 Cr, but EBITDA margin collapsed to 1.6% from 5.3% as cost of materials consumed jumped from 49.3% to 69.3% of revenue. Higher excise duty and purchases also added pressure. Finance cost was flat, but depreciation rose. The result was a net loss of ₹1,630.74 Cr vs profit of ₹4,405.85 Cr a year ago.
Segments
The consolidated net loss is entirely driven by the Petroleum Products segment which posted a standalone PBIT loss of ₹2,873 Cr vs profit of ₹9,138 Cr a year ago. Petrochemicals turned around from a small loss to profit of ₹217 Cr, and Gas segment improved to PBIT of ₹526 Cr from ₹50 Cr, providing partial offset.
Key positives
- Revenue growth of 27.1% YoY, driven by volume gains and price increases.
- Refineries throughput up 2.6% YoY to 19.165 MMT, indicating healthy demand.
- Petrochemicals segment turned profitable (PBIT ₹217 Cr vs loss of ₹1 Cr a year ago).
- Gas segment PBIT surged to ₹526 Cr from ₹50 Cr.
- Finance costs declined 16.4% YoY, aiding cash flow.
Key concerns
- Consolidated net loss of ₹1,630.74 Cr vs profit of ₹4,405.85 Cr a year ago.
- EBITDA margin collapsed to 1.6% from 5.3%, a 370bps contraction.
- Cost of materials consumed rose to 69.3% of revenue from 49.3% a year ago, overwhelming top-line growth.
- Petroleum Products segment standalone PBIT swung from profit of ₹9,138 Cr to loss of ₹2,873 Cr.
- Debt service coverage ratio fell to 0.62x (from 2.06x a year ago), indicating potential debt servicing strain.
- Cumulative LPG buffer negative at ₹29,730 Cr, though government compensation is being received in instalments.
Research and educational content only. Not investment advice.