Indian Oil Q1 FY27: Rs 2,662 Crore Loss Despite Record

Indian Oil Corporation Limited reported Q1 FY27 results for the June 2026 quarter on 31 July. Q1 FY27 numbers (standalone): Revenue: Rs 2,75,972 crore, up 26.2% YoY Net loss: Rs 2,662 crore vs profit of Rs 5,689 crore a year ago and Rs 11,378 crore in Q4 FY26 GRM $15.59 a barrel net of special excise duty; about $36 before it, per management Record Q1 throughput 19.17 MMT; domestic market share 43.1% from 41.5% The loss came from pump prices held flat while crude spiked on the West Asia conflict, LPG under-recovery of Rs 665 a cylinder in June, inventory effects and the duty. LPG compensation of Rs 3,621 crore was booked; the cumulative LPG buffer is Rs 29,730 crore. IOC has since confirmed 45 days of crude cover. Indian Oil [][***** shares trade at Rs 135.69 on the linked page (NSE near Rs 137) (4 Sep 2026, 12:27 PM IST), flat over one year, near the Rs 130 low. P/E 5.7 trailing; 0.85 times book; Rs 8.25 of trailing dividends yield over 6 percent. My view: cheap on the wrong earnings. The 5.7x rests on FY26's record margins; the quarter just printed shows what happens when crude rises and Delhi does not move the pump price. Operations are at records; the multiple ignores them because the margin is a policy variable. The FY27 dividend is not the FY26 dividend if losses repeat. Hold for the yield if owned; fresh money has no edge until a pump price revision or a duty cut, the only catalysts. Levels: Rs 130 is the floor; a close below prices a second loss quarter; Rs 138 to 140, the 20 and 50-day averages, the band to reclaim; Rs 186 to 189 the high. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.