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Informist, Tuesday, Oct. 28, 2025

 

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--IOC: Above normal rainfall affected sales volume in Jul-Sept 
--CONTEXT: IOC management's comments in post-earnings call with analysts 
--IOC: Expect significant improvement in performance in Q3, Q4 
--IOC: Had 18-19% of Russian crude oil in Jul-Sept 
--IOC: Got discount of $2-$3 per barrel on Russian crude oil in Jul-Sept 
--IOC: Positive about reducing costs; not possible to give quantum 
--IOC: Expect to commission Panipat refinery by June 
--IOC: Plan capex of INR 330 bln in FY26 
--IOC: Expect Gujarat refinery expansion by June 2026 
--IOC:Won't discontinue Russian crude imports but will comply with sanctions

 

By Anjana Therese Antony and Afra Abubacker

 

MUMBAI/NEW DELHI – Public-sector oil refining and marketing company Indian Oil Corp. Ltd. will continue to import crude oil from Russia while also complying with the sanctions imposed by the US on Russian oil entities. Russian crude oil accounted for 18-19% of the company's total imports, down from 24% in the June quarter, the Indian Oil management told sector analysts at a post-earnings call Tuesday.

 

Last week, the US had imposed sanctions on two large oil companies in Russia--Rosneft and Lukoil--to put pressure on Moscow to end the war with Ukraine. This came after talks between US President Donald Trump and his Russian counterpart, Vladimir Putin, failed. Prior to this, the UK had also imposed sanctions on these two Russian oil companies.

 

The Indian company got crude oil at a lower price from Russia compared to the benchmark price, at a discount of $2-$3 per barrel, in the September quarter, up from the discount of $1.5 per barrel it got in the June quarter. In September, India's imports of Russian crude oil fell 17% on year to 1.6 million barrels per day, according to global trade data and analytics firm Kpler. Russian oil accounted for over 33% of the country's oil imports during the month, down from 37% in August.

 

The Indian Oil management said above-normal rainfall affected the company's sales volume for the September quarter. The company's domestic sales in the reporting quarter was 22.85 million tonnes, down from 24.97 million tonnes in the June quarter. The oil marketing player expects significant improvement in its performance in the remaining two quarters of the financial year 2025-26 (Apr-Mar).

 

The company is also optimistic about reducing its overall costs in FY26, though it did not give specifics of the cost cuts targeted. "All the major verticals of internal mining, pipeline, marketing are working to reduce the cost," the management said. Earlier, the company had said it aims to cut overall costs by 20%.

 

The company expects to complete its refinery expansion plan in Gujarat by June. Commissioning of the expanded Barauni refinery in Bihar will begin in stages from August, it added. "In Gujarat refinery, we almost have 84% physical progress and in Barauni 88%," the management said. At its Panipat refinery, the company is building a polybutadiene rubber plant. The physical progress of the work is almost 70% and the plant is expected to be commissioned by June, the management said.

 

As for its capital expenditure for FY26, the company plans the overall figure to be INR 330 billion. For marketing and pipeline operations, Indian Oil expects capital expenditure of INR 100 billion, the management said.

 

After market hours Monday, the state-owned company had posted higher-than-expected quarterly earnings supported by the sharp fall in global crude oil prices. Its net profit jumped severalfold to more than INR 76 billion from nearly INR 2 billion a year ago, though its revenue rose just 4% on year to INR 2.03 trillion. Tuesday, the company's shares closed 0.4% lower at INR 154.52 on the National Stock Exchange.  End

 

US$1 = INR 88.26

 

Edited by Rajeev Pai

 

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