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    Hyundai Motor I

    HYUNDAINeutral
    Automobile and Auto Components·28 Oct 2025
    Management Summary

    IOCL delivered strong Q2 performance with significant improvement in profitability and refining margins. The government's approval of LPG compensation provides substantial relief, while operational initiatives under Project Sprint are showing positive results. Above-normal rainfall impacted volumes but underlying business fundamentals remain robust.

    Highlights

    6

    • PAT increased to ₹7,610 crores vs ₹5,689 crores in Q1 FY26

    • H1 FY26 PAT at ₹13,299 crores vs ₹2,823 crores in H1 FY25

    • Normalized GRM improved to $8.91 per barrel from $6.91 per barrel in Q1

    • Government approved ₹30,000 crores compensation for LPG under-recoveries

    • IOC's share in LPG compensation is ₹14,486 crores to be disbursed in 12 installments

    • S&P Global assigned BBB long-term rating equivalent to India's sovereign rating

    What Changed3

    vs Q2 FY26

    Tone shiftConfident and disciplined; focused on quality of sales over volume chase → confident and optimisticGuidance items5 → 4 (-1)Risks discussed4 → 3 (-1)
    Key financials

    Metrics

    5

    Periods

    2

    Headline

    3
    • Normalized GRM
      8.91 $/barrel
      YoY+29.0%
    • Reported GRM
      10.66 $/barrel
      YoY0%
    • Refinery Throughput
      17.6 MMT
      YoY-6%

    Q2

    2
    • Profit After Tax
      ₹7,610 Cr
      YoY+34%
    • Revenue from Operations
      ₹2.03L Cr
      YoY+4%

    Guidance & targets

    4
    CategoryTargetPriority
    LPG Compensation
    Monthly installments
    ₹1,207 crores per month
    		High
    CAPEX
    Annual capital expenditure
    ₹33,494 crores
    		High
    Renewable Energy
    Green energy capacity
    31 GW
    		Medium
    Ethanol Blending
    Blending percentage achieved
    19.85%
    		High

    Risks & concerns

    3
    RiskSeverity

    Weather Impact on Volumes

    Above-normal rainfall impacted sales volumes for Q2, but expected to normalize in H2 — Other acknowledged

    medium

    Petrochemical Spreads Pressure

    Petrochemical spreads remain subdued due to weak global demand and new capacity additions — Other acknowledged

    medium

    Debt Level Increase

    Borrowings increased by ₹6,692 crores to ₹1,28,239 crores but debt-to-equity at comfortable 0.68 — Other acknowledged

    low

    Q&A highlights

    3

    “As on date, the loss is around Rs. 40 per cylinder...Q2, almost it was Rs. 100 per cylinder”

    Showed significant improvement in LPG under-recovery from ₹100 to ₹40 per cylinder

    asked by Probal Sen from ICICI Securities

    1 min read4 chapters

    Detailed Narrative

    01

    Strong Financial Recovery

    IOCL demonstrated significant financial improvement with Q2 PAT rising to ₹7,610 crores from ₹5,689 crores in Q1. Half-yearly PAT jumped dramatically to ₹13,299 crores from ₹2,823 crores in H1 FY25, reflecting robust operational performance and improved market conditions.

    02

    LPG Compensation Relief

    Government's approval of ₹30,000 crores compensation for LPG under-recoveries provides significant relief, with IOCL's ₹14,486 crores share to be disbursed in monthly installments of ₹1,207 crores starting November 2025. Current LPG loss per cylinder reduced from ₹100 in Q2 to ₹40 currently.

    03

    Refining Performance Excellence

    Normalized GRM improved substantially to $8.91 per barrel from $6.91 per barrel in Q1, driven by better HSD crack spreads. Despite throughput impact from Gujarat refinery shutdown, capacity utilization remained high at 99.5% demonstrating operational efficiency.

    04

    Strategic Initiatives Progress

    Project Sprint showing positive results with green shoots in operational and financial performance. Major strategic developments include Vadodara acrylics plant inauguration, INDEcoP2F technology trials at Digboi, and Paradip hydrogen generation unit commissioning, supporting petrochemical self-reliance and sustainability goals.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.