IOC - I O C L

📊 NSE: IOC 🏢 Refineries 📅 Last Updated: 12/14/2025 7:50

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations was INR 757,312 Cr in FY25, a decline of 2.35% from INR 775,551 Cr in FY24. Q2 FY26 revenue stood at INR 202,992 Cr, down 7.14% from Q1 FY26 (INR 218,608 Cr) due to monsoon-related sales volume impacts.

Geographic Revenue Split

Not disclosed in available documents, though the company holds a 42% domestic market share for petroleum products in India.

Profitability Margins

PAT margin fell from 5.4% in FY24 to 1.6% in FY25. Operating profit (OPBDIT/OI) margin declined from 9.9% in FY24 to 4.8% in FY25 due to lower gross refining margins (GRMs) and LPG under-recoveries.

EBITDA Margin

PBILDT was INR 35,515 Cr in FY25, a 52.7% decline from INR 75,112 Cr in FY24. Q1 FY26 PBILDT was INR 13,267 Cr.

Capital Expenditure

IOCL is executing 160 projects with a cumulative cost of over INR 2.6 lakh Cr. Annual capex is expected to range between INR 33,000-34,000 Cr over the next 4-5 years.

Credit Rating & Borrowing

Ratings reaffirmed at CARE AAA; Stable and [ICRA]AAA (Stable). Borrowing costs are minimized due to sovereign ownership (51.5% GoI stake), providing access to funds at attractive rates.

⚙️ Operational Drivers

Raw Materials

Crude oil is the primary raw material, representing the bulk of procurement costs which are largely dollarized.

Import Sources

Sourced from domestic entities like ONGC and Oil India, and imported from international markets including the Middle East.

Key Suppliers

ONGC, Oil India, and various global crude suppliers.

Capacity Expansion

Current refining capacity is 80.8 MMTPA (31% of India's total). Planned expansions include a 9-MMTPA greenfield refinery at Cauvery Basin (currently stalled for modifications) and various brownfield refinery expansions.

Raw Material Costs

Profitability is highly sensitive to crude oil prices and crack spreads. LPG sourcing costs and range-bound crude prices are expected to support near-term margins.

Manufacturing Efficiency

Refineries characterized by high Nelson Complexity Index (NCI); pipeline infrastructure ensures stable cash generation.

Logistics & Distribution

Operates 40,666 retail outlets as of June 2025 and a network of 12,924 LPG distributors with 101 bottling plants.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is driven by brownfield refinery expansions, setting up pipeline infrastructure, and expanding the petrochemical portfolio. The company is also transitioning toward green energy with a Net Zero target by 2046.

Products & Services

Petrol (Motor Spirit), Diesel (High Speed Diesel), LPG, Superior Kerosene Oil (SKO), Petrochemicals (HDPE, PP), and Naphtha.

Brand Portfolio

IOCL, Indane (LPG).

New Products/Services

Green Hydrogen (10-kta plant in Panipat), EV charging infrastructure (13,614 stations commissioned), and Ethanol blending/Compressed Bio Gas (CBG).

Market Expansion

Targeting increased presence in alternative/renewable energy with a current RE portfolio of 247 MW (168 MW wind, 79 MW solar).

Market Share & Ranking

Largest refiner in India (31% capacity) and largest OMC with 40-45% market share in HSD, MS, and LPG.

Strategic Alliances

Joint Venture with Chennai Petroleum Corporation Limited (CPCL) for the Cauvery Basin refinery project.

🌍 External Factors

Industry Trends

Shift toward electric vehicles and green technologies like hydrogen. Industry currently faces weak global demand for end products but expanding fuel retailing margins due to lower crude prices.

Competitive Landscape

Key competitors include other PSU OMCs (BPCL, HPCL) and private players like Reliance Industries.

Competitive Moat

Moat is derived from 51.5% sovereign ownership, dominant market position (42% product share), and massive integrated infrastructure which are highly sustainable due to high entry barriers.

Macro Economic Sensitivity

Highly sensitive to global crude oil price volatility and GDP growth, as India remains heavily dependent on fossil fuels.

Consumer Behavior

Ongoing shift toward a future less dependent on fossil fuels, necessitating business model adaptation.

Geopolitical Risks

Geopolitical tensions impacting Brent crude prices and global demand for end products.

⚖️ Regulatory & Governance

Industry Regulations

Strict compliance required for Bharat Stage VI (BS-VI) product specifications and Government pricing/subsidy sharing policies on sensitive products.

Environmental Compliance

Invested INR 56 Cr in tree plantation under the Green Credit Program; targeting Net Zero by 2046 to comply with tightening regulations.

Taxation Policy Impact

Subject to windfall taxes, duties, cess, and dividend payments which significantly impact profitability.

Legal Contingencies

Board composition was not in conformity with Listing Regulations due to the absence of adequate independent directors and at least one woman independent director during various periods in FY25.