Fitch affirms IOC's long-term rating at 'BBB-', outlook 'stable'
This story was originally published at 17:27 IST on 24 June 2026
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AHMEDABAD – Fitch Ratings has affirmed Indian Oil Corp. Ltd.'s long-term foreign currency issuer default rating at "BBB-" with "stable" outlook, it said in a release Wednesday. The rating agency also affirmed Indian Oil's senior unsecured rating at "BBB-", the company said in its filing with the stock exchanges.
These ratings are the same as India's sovereign rating as the government holds 51.5% of Indian Oil Corp. and the rating agency assesses the government's role in decision-making in the company and its supervision of the company as "strong". Indian Oil's standalone credit profile reflects Fitch's expectation that the oil marketing company's earnings before interest, taxation, depreciation, and amortisation will recover to a satisfactory level after the financial year 2027-28 (Apr-Mar) following the expected deterioration in FY27 because of the US-Iran conflict.
Fitch expects Indian Oil's EBITDA to drop by 50-60% in FY27, as higher input costs could offset the abnormally wide gross refining margin and a lower marketing profit. However, it sees FY28 EBITDA rebounding by 20-30% as crude oil prices approach mid-cycle levels and the gross refining margin reaches about $6 per barrel.
Fitch said it has forecast Indian Oil's capital expenditure in FY27 at around INR 357 billion and expects it to remain high at INR 375 billion thereafter, despite Indian Oil completing expansion of its refineries.
Indian Oil's net profit for the March quarter was INR 113.78 billion, up nearly 57% on year. Its revenue from operations for the quarter rose 7% on year to INR 2.33 trillion. The company's top line, net of excise duty, was INR 2.08 trillion. Wednesday, shares of Indian Oil ended at INR 146.30 per share on the National Stock Exhange, up 2.2% from Tuesday. End
US$1 = INR 94.66
Reported by Sunil Raghu
Edited by Rajeev Pai
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