New Delhi: Indian Oil Corporation Limited (IOC) shareholders approved a final dividend of ₹1.25 per equity share for FY2025-26 at the company’s 67th Annual General Meeting (AGM) held on August 31, 2026.
Chairman A. S. Sahney used the AGM to highlight Indian Oil’s response to the changing global energy environment, particularly disruptions linked to the West Asia conflict. He said the experience had reinforced an important lesson for the company: resilience needs to be built before it is tested.
According to Sahney, energy security in an uncertain global environment depends not only on scale but also on agility, diversification and preparedness.
Indian Oil Shareholders Approve Key Resolutions
The AGM began at 10:30 am through video conferencing and concluded at 1:50 pm.
Shareholders considered and approved nine ordinary resolutions and one special resolution. Key decisions included:
- Adoption of audited standalone and consolidated financial statements for FY2025-26.
- Declaration of ₹1.25 per equity share final dividend for FY2025-26.
- Reappointment of Rashmi Govil and Arvind Kumar as directors retiring by rotation.
- Appointment of Saumitra P. Srivastava as Whole-time Director (Marketing).
- Appointment of A. Amarnath as Government Nominee Director.
- Approval of material related-party transactions with Petronet LNG Ltd.
- Ratification of cost auditor remuneration for FY2026-27.
- Amendment to the company’s Memorandum and Articles of Association through a special resolution.
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West Asia Conflict Tests Energy Supply Resilience
Sahney said developments in West Asia towards the end of FY2025-26 and into the current financial year demonstrated how quickly the global energy landscape can change.
India imports more than 88% of its crude oil requirement, while around 45% of crude imports and nearly 90% of LPG imports move through the Strait of Hormuz, where maritime trade has faced disruptions.
Against this backdrop, Indian Oil’s priority was to maintain continuity of energy supplies despite constrained sourcing options and volatile international markets.
The company responded by:
- Diversifying crude sourcing.
- Rerouting cargoes.
- Realigning refinery operations.
- Strengthening supply-chain coordination.
- Optimising cargo movements.
- Rebalancing petroleum products across regions.
- Using 24×7 control rooms and real-time market monitoring.
Sahney said these measures were undertaken with guidance from the Ministry of Petroleum and Natural Gas.
Refineries Operate Above 100% Capacity Utilisation
Despite a significant shift away from Middle Eastern crude grades, Indian Oil maintained strong refinery operations.
During the June quarter of FY2026-27, the company’s refineries processed a record 19.17 million metric tonnes (MMT) of crude, achieving 109.4% capacity utilisation.
Other key quarterly operational figures included:
- Pipeline throughput: Record 28.55 MMT.
- Domestic petroleum product market share: 43.1%.
- LPG production: Increased by nearly 30% during the supply disruption period.
- Additional LNG was sourced from diversified geographies to maintain supplies to priority sectors.
However, higher crude costs arising from the West Asia conflict put pressure on profitability during the quarter.
Indian Oil Reports ₹8.86 Lakh Crore Turnover in FY2025-26
For FY2025-26, Indian Oil reported a turnover of around ₹8.86 lakh crore and a standalone net profit of ₹36,802 crore.
The company’s full-year operational performance included:
- Aggregate sales: More than 105 MMT across petroleum products, natural gas and petrochemicals.
- Refinery crude throughput: Record 75.45 MMT.
- Liquid pipeline throughput: Record 102.52 MMT.
- Domestic petroleum product sales: 88.97 MMT.
The company’s performance came despite an increasingly volatile global energy environment.
Indian Oil Targets 98 MMTPA Refining Capacity
Indian Oil is undertaking expansion projects at three major refineries as part of its next phase of growth.
The planned capacity increases are:
- Panipat Refinery: 15 MMTPA to 25 MMTPA.
- Gujarat Refinery: 13.7 MMTPA to 18 MMTPA.
- Barauni Refinery: 6 MMTPA to 9 MMTPA.
Together, these projects are expected to increase Indian Oil’s group refining capacity from 80.75 MMTPA to around 98 MMTPA.
Sahney said Indian Oil would contribute more than 40% of the incremental refining capacity as India moves towards its national target of 300 MMTPA refining capacity.
Pipeline Infrastructure Expansion Underway
Indian Oil is also strengthening its crude oil and LPG transportation infrastructure.
During FY2025-26, the company completed the augmentation of the Salaya–Mathura crude oil pipeline, while the new Mundra–Panipat crude oil pipeline is nearing completion.
The 2,805-km Kandla–Gorakhpur LPG pipeline, being developed through joint venture IHB Limited, is also progressing. Indian Oil describes it as the world’s longest LPG pipeline, with the Kandla–Bhopal section already completed.
Petrochemical Intensity Target Set at 15% by 2030
Indian Oil’s petrochemical business also recorded strong performance, with petrochemical sales reaching a record 3.40 MMT during FY2025-26.
The Acrylics and Oxo-Alcohol project at Gujarat Refinery has expanded the company’s presence in high-value petrochemicals.
Looking ahead, Indian Oil aims to progressively increase its Petrochemical Intensity Index to around 15% by 2030.
Natural Gas Business and Upstream Operations Expand
Natural gas sales reached a record 7.09 MMT, while the company’s city gas distribution business became EBITDA positive.
Indian Oil has set targets to:
- Increase natural gas sales by 1.5 times by 2030.
- Raise upstream integration to more than 10% by 2031.
The company also commenced commercial gas production from its coal bed methane block in Jharkhand and recorded first oil from the Jyoti-1 and Jyoti-2 wells in Gujarat.
Two oil discoveries were also made at Shilaif and Habshan in Abu Dhabi.
Product Exports Rise to 5.21 MMT
Indian Oil’s product exports increased to 5.21 MMT in FY2025-26, with supplies to neighbouring countries growing by more than 10%.
The company has also signed a long-term agreement with the State Trading Corporation of Mauritius to meet the country’s entire import requirement of:
- Motor spirit
- High-speed diesel
- Aviation turbine fuel
Indian Oil Accelerates Green Hydrogen and Renewable Energy Projects
Indian Oil is also progressing with projects linked to the energy transition.
The company became the first in India to receive ISCC CORSIA certification for sustainable aviation fuel (SAF) production at Panipat through the co-processing route.
Construction has also begun on a large-scale green hydrogen plant at Panipat.
Through Terra Clean Limited, Indian Oil has 1 GW of renewable energy capacity under development, with another 4.3 GW under preparation.
The company said its approach remains focused on scaling commercially viable technologies while balancing sustainability with value creation.
SPRINT Programme Drives Efficiency and Cost Savings
Indian Oil’s transformation programme SPRINT helped the company achieve its best-ever refinery Energy Intensity Index of 90.1.
Panipat and Mathura refineries reached Quartile-1 in Solomon benchmarking for the first time.
Other efficiency gains included:
- 12% reduction in LPG bottling costs.
- 8% reduction in aviation operating costs.
- More than ₹2,000 crore in savings through cost-optimisation initiatives.
Capex Reaches ₹32,405 Crore
Indian Oil’s capital expenditure stood at ₹32,405 crore during FY2025-26.
The company’s financial position also strengthened, with its debt-to-equity ratio improving to 0.54 from 0.75.
Meanwhile, the company’s shareholder base has expanded significantly to nearly 29 lakh, compared with around 6 lakh at the beginning of the decade.
Indian Oil Spends ₹488.63 Crore on CSR
Indian Oil implemented more than 700 CSR projects during FY2025-26, with total CSR expenditure of ₹488.63 crore.
The company’s CSR initiatives focused significantly on areas including:
- Health and nutrition.
- Aspirational Districts.
- PM Internship Scheme.
Sahney said Indian Oil’s responsibility extends beyond delivering energy to supporting India’s economic growth, strengthening energy security and contributing to the country’s journey towards Viksit Bharat.
IndianOil’s Growth Strategy Focuses on Energy Security
The company’s 67th AGM highlighted a strategy built around strengthening its traditional businesses while creating multiple new engines of growth.
IndianOil is simultaneously expanding refining capacity, pipelines and fuel retail infrastructure while increasing its presence in petrochemicals, natural gas, upstream exploration and international markets.
At the same time, investments in renewable energy, green hydrogen, SAF, CBG and digital technologies are aimed at preparing the company for India’s changing energy requirements.
The overall objective is to develop IndianOil into a more diversified and integrated energy major, capable of supporting India’s growing energy demand while creating sustainable long-term value for shareholders.
About Indian Oil Corporation Limited
Indian Oil Corporation Limited (IndianOil) is a Maharatna Central Public Sector Enterprise under the Ministry of Petroleum and Natural Gas, Government of India. It is one of India’s largest integrated energy companies, with operations spanning refining, petroleum products, pipelines, natural gas, petrochemicals, exploration and production, and emerging clean-energy businesses.
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