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Revenue
₹1,78,628 Cr
verified against source
Revenue YoY
4%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Indian Oil reported a strong Q2 FY26 with PAT of ₹7,610 crore, up from ₹5,689 crore in Q1, driven by higher GRMs and improved operational performance. Revenue from operations stood at ₹2,02,992 crore, slightly down sequentially due to above-normal rainfall impacting sales volumes. Reported GRM improved to $10.66/bbl (normalized $8.91/bbl) versus $6.91/bbl in Q1, supported by strong HSD cracks and operational efficiency. The government approved ₹30,000 crore LPG compensation, with IOC's share of ₹14,486 crore to be recognized monthly from November 2025. Project Sprint cost optimization is underway with a 20% cost reduction target. Refinery expansions at Panipat, Gujarat, and Barauni are on track for commissioning by mid-2026. Key risk: sustained weakness in petrochemical margins could weigh on overall profitability.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated the annual capex plan of ~₹33,500 crore, with ₹14,000 crore for refining, ₹10,000 crore for marketing/pipelines, ₹2,500 crore for petrochemicals, and ₹2,000 crore equity for renewables JVs.
- Panipat (10 MMTPA) and Gujarat expansions expected by June 2026; Barauni expansion in stages from August 2026. First-year throughput assumed at 60% of capacity.
- The three-year initiative aims to reduce budgeted costs by 20% across all verticals (refining, marketing, pipelines). Specific savings will be shared from Q3 onwards.
- IOC aims to develop 31 GW of renewable capacity through subsidiary Terine Ltd and JV with NTPC Green, with equity funding of ~₹2,000 crore in FY26.
Risks flagged
- Petchem spreads continue to be weak due to global oversupply and weak demand, though IOC expects positive EBIT contribution for the rest of the year.
- While ₹30,000 crore compensation was approved, management noted that LPG remains a controlled product and future under-recoveries may not be fully compensated; the government will decide on a cumulative basis at year-end.
- Q2 saw an inventory gain after a ₹2,300 crore loss in Q1; crude price volatility could lead to further inventory losses, impacting reported profits.
- The discount on Russian crude has narrowed to $2-3/bbl from higher levels earlier, and sanctions compliance may limit availability, potentially impacting GRM outperformance.
Key quotes
- The strategic initiative of project sprint has started showing improvements with green shoots visible in operational and financial performances.
- Given the performance we had in Q2 and the other sectors what you mentioned, we should have a good profitability for this year.
- We are not absolutely going to discontinue [Russian crude] as long as we are doing the compliance of the sanctions... if somebody comes to me which is a non-sanctioned entity and the cap is being complied with, then I will continue to buy it.
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