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Indian Oil Corporation reported a landmark FY26, achieving a PAT of ₹36,802 crores, a substantial increase from ₹12,962 crores in FY25. The company recorded its highest-ever annual refining throughput of 75.5 MMT with 107.4% capacity utilization, alongside record consolidated annual sales volumes of 105.117 MMT, marking a 4.81% growth over FY25. Additionally, the lubricants and petrochemical segments also saw their highest-ever sales volumes, reaching 905 TMT and 3.396 MMT respectively, with pipeline throughput also hitting a record 105.6 MMT.

The company operated amidst significant geopolitical challenges, including the US-Iran conflict and disruptions in the Strait of Hormuz, which led to heightened volatility in crude oil, LPG, and natural gas markets. Attacks on the Ras Laffan LNG complex further tightened global gas availability. In response, IndianOil diversified its crude and gas sourcing across alternate geographies, optimized procurement strategies, and ramped up domestic LPG production to ensure uninterrupted energy supply across India.

IndianOil incurred a total capex of ₹31,401-32,405 crores in FY26, with a budgeted capex of ₹32,700 crores for FY27, primarily directed towards refining, pipeline, and renewables. The company successfully moderated its borrowings to ₹1,10,668 crores by March 31, 2026, reducing debt by ₹23,798 crores in FY26. This resulted in a comfortable gross debt-to-equity ratio of 0.54 and a net debt-to-equity ratio of 0.32, positioning the company well for future growth opportunities.

IndianOil is aggressively pursuing its green energy agenda, achieving an ethanol blending percentage of 19.97% by March 2026. Its wholly-owned subsidiary, Terra Clean Limited, secured approvals for 2.65 GW capacity, aiming to develop 31 GW of renewable energy by 2030. Significant investments are also directed towards green hydrogen, with a 10KTA plant at Panipat Refinery expected by December 2027, alongside the development of an in-house green hydrogen ecosystem and field trials for fuel cell vehicles.

The company noted significant volatility in refining margins during Q4 FY26 and opted not to disclose GRM, emphasizing PAT and EBITDA as better performance indicators. A key concern was the escalating LPG under-recoveries, which rose from INR100/cylinder in Q4 FY26 to INR171 in April 2026 and further to INR670/cylinder in May 2026. Exchange rate fluctuations, with the Rupee depreciating by approximately 11% against the USD, also contributed to increased operating costs through exchange losses.

The three major refinery expansion projects at Panipat (to 25 MMTPA), Gujarat (to 18 MMTPA), and Barauni (to 9 MMTPA) are slated for completion by December, November, and August 2026, respectively. Management expects a ramp-up in utilization for these brownfield expansions, typically reaching 60% in the first year, 80% in the second, and 100% in the third year, with expectations for a faster turnaround. The standalone refining throughput for FY27 is projected to be around 75 MMTPA.

The petrochemical segment demonstrated strong performance, with Q4 FY26 contributing additional margins and FY26 sales reaching 3.396 MMT. Management expects continued higher sales volumes and good returns from this segment. In the gas segment, while prices remained elevated impacting sales and margins, the CGD business achieved EBITDA positive status in Q1 FY26 and PBT positive by the end of FY26, with volumes expected to grow in the next financial year, despite ongoing pricing challenges.