Indian Oil Q1 Profit Misses Estimates Amid Inventory Losses and Margin Pressure

Indian Oil Corporation (IOC), the country’s leading oil refiner, reported a first-quarter standalone profit of ₹56.89 billion (approx. US $649 million) for the quarter ended June 30, 2025—an impressive year-on-year increase, but still notably below analysts’ expectations of ₹74.66 billion. Reuters

Revenue growth was modest, with operations revenue rising about 1.2% to ₹2.19 trillion, indicating a steady demand environment despite broader margin pressures. Reuters

A key factor behind the earnings miss was a sharp drop in gross refining margin (GRM)—from $6.39 per barrel last year to just $2.15 this quarter. This steep contraction was largely driven by inventory losses, which heavily compressed IOC’s profitability. Reuters+8Reuters+8marketscreener.com+8

IOC and its subsidiary, Chennai Petroleum, together account for roughly one-third of India’s 5 million barrels-per-day refining capacity—making IOC’s performance an important indicator for the sector. Reuters+1