This article first appeared on GuruFocus .
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Profit After Tax (PAT):INR 36,802 crore for FY25-26, up from INR 12,962 crore in FY24-25. Q4 PAT was INR 11,378 crore.
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Revenue from Operations:INR 232,855 crore for Q4, up from INR 231,769 crore in the previous quarter. FY25-26 revenue was INR 886,224 crore, compared to INR 845,513 crore in FY24-25.
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Refining Throughput:Highest-ever annual throughput of 75.5 million metric tons with a capacity utilization of 107.4% for FY25-26.
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Pipeline Throughput:Record 105.6 million metric tons for FY25-26 with a capacity utilization of 73.7%.
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Total Sales Volume:105.117 million metric tons for FY25-26, a growth of about 5% from the previous year.
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Retail Outlets:2,597 new outlets commissioned, bringing the total to 42,818.
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Petrochemical Sales:Highest-ever sales of 3.396 million metric tons for FY25-26.
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Gas Sales:Total gas sales of 7,276 TMT for FY25-26, including CGD sales of 188 TMT.
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CapEx:INR 31,401 crore incurred during FY25-26, with a budgeted target of INR 32,700 crore for FY26-27.
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Borrowings:Reduced by INR 23,798 crore during the year, with gross debt-to-equity ratio at 0.54 as of March 31, 2026.
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Release Date: May 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Indian Oil Corp Ltd ( BOM:530965 ) achieved the highest-ever annual refining throughput and consolidated annual sales volume in its history.
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The company reported a significant increase in profit after tax, reaching INR36,802 crore for FY25-26, compared to INR12,962 crore in the previous year.
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Indian Oil successfully diversified its crude and gas sourcing to ensure uninterrupted energy supply amidst geopolitical tensions.
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The company recorded the highest-ever sales in lubricants and petrochemicals, reflecting strong operational performance.
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Indian Oil commenced India's first-ever export of Liquefied Natural Gas (LNG) by road to Nepal, promoting cleaner fuel adoption.
Negative Points
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The ongoing US-Iran conflict and disruptions in the Strait of Hormuz have created significant uncertainties in the global hydrocarbon supply chain.
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The Indian rupee experienced pronounced volatility, depreciating by about 11% against the USD during the year, impacting financial stability.
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LPG under-recoveries increased significantly, with a loss of INR9,211 crore for the full financial year 25-26.
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The company faced challenges in the gas segment due to elevated gas prices, affecting sales volumes and margins.
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There is uncertainty regarding the future pricing strategy for petroleum products, which could impact financial performance.
Q & A Highlights
Q: Can you provide an update on Project SPRINT and its impact on CapEx and OpEx? A: Anuj Jain, Finance Director, explained that Project SPRINT has resulted in measurable savings of approximately INR2,200 crore during FY25-26, primarily through reductions in repairs, maintenance, energy efficiency improvements, and supply chain optimization. The target for FY26-27 is INR2,500 crore in savings. CapEx has been optimized, focusing on reducing non-earning or maintenance CapEx while continuing planned expenditures.
Q: What are the CapEx priorities beyond the current expansion phase, and how is Indian Oil aligning with national priorities? A: Anuj Jain stated that Indian Oil is investing in refining, marketing, petrochemicals, gas, and renewables, with a robust capital allocation policy. For FY26-27, the planned CapEx is INR32,700 crore, with significant investments in refining and pipeline setups, and around INR5,000 crore allocated to renewables.
Q: Can you provide details on the status and ramp-up of the refinery expansions? A: Anuj Jain mentioned that the Panipat, Gujarat, and Baroni refinery expansions are expected to be completed by the end of 2026. The ramp-up typically follows a pattern of 60% capacity in the first year, 80% in the second, and full capacity by the third year.
Q: How is Indian Oil managing the supply chain amid geopolitical tensions, and what is the outlook on pricing? A: Anuj Jain emphasized that Indian Oil is ensuring energy security by diversifying crude and LPG sourcing and optimizing supply chains. The situation remains uncertain, and decisions are made daily to manage the crisis. Specific pricing guidance was not provided due to the volatile environment.
Q: What is the outlook for refining margins and the potential impact of refinery expansions on Indian Oil's operations? A: Anuj Jain indicated that refining margins are expected to remain high due to geopolitical uncertainties. The expansions will increase capacity, but given India's demand, major exportable surpluses are not anticipated. The focus is on maintaining operational efficiency and meeting domestic demand.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
