State-run Indian Oil Corp on Friday reported a consolidated net loss of Rs 1,141.09 crore for the first quarter of the financial year 2026-27 as against a profit of Rs 6,808.12 crore reported in the same period of the previous fiscal.

The loss during the current quarter is mainly due to suppressed marketing margin on certain petroleum products, which was partially offset by higher refining margin.

The company’s revenue from operations stood at Rs 2.82 lakh crore in Q1FY27, up 27 percent from Rs 2.21 lakh crore in Q1FY26. Total income also registered an increase of 27 percent on-year to Rs 2.82 lakh crore.

The company’s refinery throughput for the quarter under review stood at 19.165 million tonnes, up by 3 percent from 18.683 million tonnes in the same quarter of the previous fiscal.

Domestic sales increased to 25.252 million tonnes from 24.973 million tonnes in the same quarter of FY26. Exports, however, declined by 29 percent to 0.959 million tonnes during Q1FY27.

Last year, the oil ministry had approved a compensation of Rs 14,486 crore to the company towards under-recoveries incurred on sale of domestic LPG up to March 31, 2025 and likely to be incurred up to March 31, 2026.

“In accordance with the letters, installments for the period from April 2026 to June 2026 aggregating to Rs 3,621.51 crores have been recognized as Revenue from Operations in the books of account and the cumulative net negative buffer has been reduced to that extent,” the company said.

OMCs reported huge losses in April-May, led by elevated benchmark prices, premiums, logistic costs, weak rupee and delayed retail price rise amid West Asia conflict.

Global oil prices had a "rollercoaster" ride during the April-June period, with prices dictated by developments in the West Asia conflict, where intense escalations were followed by a fragile, short-lived ceasefire.

Brent crude, the global benchmark, dropped to around $90 on April 17 after the US and Iran announced a temporary ceasefire but hit a four-year high of $126.41 on April 30 on fears of renewed hostilities. The monthly average was around $117 a barrel.

Crude prices remained above $110 in the first half of May before plunging to $92.05 a barrel by the end of the month on renewed hopes of peace. In June, it slipped further, averaging $85 a barrel.

Brent is experiencing renewed volatility this month, with prices hovering at $97 a barrel amid renewed tensions in the Strait of Hormuz after the ceasefire collapsed.