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Informist, Monday, Aug. 18, 2025

 

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--IOC: FY26 capex seen at INR 334.9 bln 
--CONTEXT: Indian Oil Corp management comments in a post-earnings analyst call 
--IOC: Crude imports from Russia 24% of co's total imports 
--IOC: Continued to import crude oil from Russia in July 
--IOC: Russian crude at a discount of $1.5/bbl of benchmark price 
--IOC: LPG under-recovery INR 160-INR 165 per cylinder Apr-Jun 
--IOC: LPG under-recovery INR 100-INR 105 per cylinder August 

 

By Narayana Krishna and Simran Rede

 

HYDERABAD/MUMBAI - Indian Oil Corp. Ltd., the country's largest oil marketing company, said Monday it imported crude oil from Russia at a $1.5-per-barrel discount to the benchmark price in July, adding that it will continue the imports despite the current global geopolitical scenario. The price of India's crude oil basket was at $68.13 per barrel as of Friday, up 84 cents from Wednesday.

 

Russian crude oil imports accounted for 24% of the company's total imports in the June quarter, the company's management said in a post-earnings conference call. For 2024-25 (Apr-Mar), IOC's share of total Russian imports was 22% of its total imports.

 

India has encountered objections from the US over its rising dependence on Russian oil since the Ukraine conflict started in February 2022. Washington has alleged that India's purchases indirectly support Moscow's revenues, while New Delhi has maintained that its decisions are guided by energy security and price stability.

 

For the June quarter, IOC reported a 115% on-year rise in its net profit to INR 56.89 billion, below the estimates. Its revenue for the quarter rose 1.2% on year to INR 2.186 trillion. On a trailing basis, IOC reported a nearly 22?ll in net profit while its revenues were almost flat. The sequential fall in net profit was due to inventory losses during the quarter, the company's management said. 

The company's management said its three major refinery expansion projects are progressing well and are on track for mechanical completion by 2026.

"Looking ahead, we have set ourselves the goal of increasing our share of the national energy basket from 9% today to 12.5% by 2050. To achieve this, we are pursuing a balanced portfolio approach by continuing to strengthen our conventional fuel business while making decisive moves into cleaner and more sustainable energy pathways," IOC's management said.

The company expects to incur a capital expenditure of INR 334.9 billion in FY26, of which it has spent nearly INR 64.7 billion in the June quarter. The company's borrowings declined to INR 1.21 trillion in Apr-Jun from 1.34 trillion at the end of FY25. The fall in the borrowings was mainly on account of year-end excise duty adjustments, the management said. It added that the company's debt-to-equity ratio is comfortable to meet all its capital expenditure requirements.

IOC's management said the company is waiting for clarity on proposed compensation to oil marketing companies for its liquefied petroleum gas sales. 

"For the under-recovery incurred on sale of domestic LPG, we are yet to receive an official communication in this regard for further details and accounting, and a note on the same was given in the financial results also," the company's management said. On Aug. 8, the Union Cabinet had approved to compensate three state-run oil marketing companies – Indian Oil Corp., Bharat Petroleum Corp. Ltd. and Hindustan Petroleum Corp. Ltd. –- with INR 300 billion for under-recoveries on the sale of domestic LPG. This compensation aims to offset the losses incurred due to selling the LPG at a regulated price.

For the June quarter, LPG under-recoveries for the company were at INR 160 to INR 165 per 14.2 kg cylinder, while this came at INR 100 to INR 105 per cylinder in August, the management said.

At 1337 IST, shares of IOC traded nearly flat at INR 140.15 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

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