Indian Oil Corporation Ltd Q1 FY27 Earnings Analysis

- Indian Oil reported highest-ever annual refining throughput of 75.5 MMT with 107.4% capacity utilization in FY 2025-26, expecting similar throughput (~75 MMTPA standalone; 85 MMTPA including CPCL) in FY27. - Marketing volumes grew ~4.8% with record sales volume of 105.117 MMT in FY25-26, indicating positive volume growth momentum. - Petrochemical segment achieved highest-ever sales of 3.396 MMT in FY25-26 with expectations to sustain higher sales volumes and good returns. - Gas sales increased to 7,276 TMT in FY25-26; City Gas Distribution (CGD) business turned PBT positive with rising volumes expected next year. - Biofuels achieved 19.97% ethanol blending; Indian Oil targets 31 GW renewable energy capacity by 2030 indicating diversification growth. - Refining margins expected to remain high next 1-2 years due to global uncertainties, supporting revenue growth. - Overall, Indian Oil aims continued volume growth across refining, petrochemicals, gas, and renewable segments aligned with robust capex and operational efficiencies.

- Indian Oil expects continued strong performance in petrochemicals with higher sales volumes and good returns in FY27 (Page 13). - Gas segment to improve as standalone CGD (City Gas Distribution) business turned PBT positive in Q4 FY26; volumes expected to grow in FY27 (Page 13). - Refining throughput guidance for FY27 is about 75 MMT standalone, with steady throughput expected, considering some planned shutdowns (Page 12). - Refining margins expected to remain high for 1-2 years due to geopolitical uncertainties, potentially supporting earnings growth (Page 11). - Focus on EBITDA and PAT rather than GRM for overall performance, given volatility (Page 10). - Capex of around Rs. 32,700 crore planned for FY27 with majority in refining and pipeline; capex expected to reduce in refining post-FY27 (Pages 7, 6). - Savings from Project SPRINT to continue, with INR 2,500 crore targeted in FY27 adding to margin improvement (Page 7). - Overall strong PAT in FY26 (Rs. 36,802 crore) signals a robust baseline for future growth (Page 3).

- Indian Oil incurred a total capex of Rs. 31,401 crores in FY 25-26 with a budgeted capex of Rs. 32,700 crores for FY 26-27. - Major investments focus on refining, petrochemical expansions (Panipat, Barauni, Gujarat, Paradip), and renewables. - Refinery expansion projects targeted for completion in 2026: Panipat (Dec '26), Barauni (Aug '26), Gujarat (Nov '26). - Approximately INR5,000 crores of FY 26-27 capex allocated to renewable energy. - Capex emphasis mainly on refining and pipeline infrastructure. - Project SPRINT resulted in measurable annual savings of INR2,200 crores (FY25-26) and targets INR2,500 crores savings in FY26-27. - Future capex allocations maintain robust capital allocation policy balancing existing business growth and new renewable ventures. - FY 27 capex breakdown expected majorly towards refining, marketing, and petrochemical segments.

- As of March 31, 2026, Indian Oil's borrowings have reduced by about Rs. 5,280 crore during the quarter and Rs. 23,798 crore during the year, standing at Rs. 1,10,668 crore. - The company has a comfortable leverage profile with a gross debt-to-equity ratio of 0.54 and net debt-to-equity ratio of 0.32 after adjusting for financial investments. - No specific mention of new fundraising through debt or equity during the call. - The company plans to spend approximately Rs. 32,700 crore as capex in FY 26-27, primarily funded through internal accruals, given the strong profitability and reduction in borrowings. - Indian Oil maintains financial strength to pursue growth and absorb market volatility but did not explicitly indicate new debt or equity issuance in this period.

The provided pages from the Indian Oil Corporation Limited May 19, 2026 document do not explicitly mention details about the current or expected order book or pending orders. The discussion primarily focuses on operational performance, capacity utilization, supply chain management, pricing, crude and LPG inventory, capex plans, and overall financial results for FY 2025-26 and expectations for FY 2026-27. Key related points: - Capex for FY 2026-27 is expected to be around INR 32,700 crores, with major spending in refining, existing pipeline setups, and around INR 5,000 crores in renewable energy. - Projects relating to refinery expansions are Brownfield and expected to ramp up throughput to full utilization over 2-3 years. - No specific order book or pending orders details were disclosed in this transcript. Please refer to official filings or contact the corporate finance team for detailed order book or pending order information.