Indian Oil Corporation delivered a robust financial performance for the fiscal year ended March 31, 2026, reporting a standalone net profit of ₹36,802 crore, a sharp rise from ₹12,962 crore in the previous year. Revenue from operations increased to ₹8,86,224 crore from ₹8,45,513 crore, driven by a 4.7% growth in total sales volume to over 105 MMT and receipt of LPG compensation from the Government. The surge in profitability was primarily fueled by improved refinery margins due to lower crude costs and a decrease in buffer losses on retail LPG sales.

Operational metrics reached new highs during the period. Refineries achieved a record crude throughput of 75.45 MMT, operating at 107.4% of installed capacity, up from 71.56 MMT in the prior year. Liquid pipelines recorded their highest-ever throughput of 102.52 MMT. Domestic petroleum sales hit an all-time high of 88.97 MMT, reinforcing the company’s market leadership. The petrochemicals business also saw record sales of 3.40 MMT, while the natural gas business registered its highest-ever sales of 7.09 MMT, excluding captive consumption.

Financial Highlights

The company’s financial health strengthened significantly, with the debt-to-equity ratio improving to 0.54 from 0.75 in the previous year. This deleveraging was supported by strong profitability and effective working capital management. The company reduced overall borrowings by approximately ₹23,000 crore. Key financial indicators for the year are summarized below:

Strategic Initiatives and Governance

The company launched Project SPRINT in April 2025, a three-year transformation program aimed at improving profitability, productivity, and capital efficiency across refining, marketing, and pipelines. During the year, the company commissioned 2,635 new retail outlets, bringing the total network to 42,818. It also achieved an ethanol blending level of 19.91%, progressing toward the national target.

Governance structures faced temporary adjustments due to the non-availability of Independent Directors on the Board from March 28, 2026. Consequently, statutory committees including the Audit Committee, Nomination & Remuneration Committee, and Risk Management Committee were discontinued until new appointments were made. The Secretarial Auditor noted this non-compliance with SEBI LODR regulations but confirmed it was beyond the company’s control as a Government entity.

What the Numbers Show

The divergence between revenue growth (4.8%) and net profit growth (184%) highlights the significant impact of margin expansion and cost optimization. While top-line growth was modest, driven largely by volume increases and government compensation, the bottom-line surge indicates that the company successfully leveraged lower crude input costs and operational efficiencies. The improvement in EBITDA margin from 4.50% to 8.32% underscores the effectiveness of these operational strategies in enhancing profitability despite a volatile global energy landscape.

Indian Oil Corporation has scheduled its 67th Annual General Meeting (AGM) for Monday, August 31, 2026, to approve the financial statements for FY26 and declare a final dividend of ₹1.25 per share. The meeting will also seek shareholder consent for material related party transactions (RPTs) with joint venture Petronet LNG Ltd. (PLL) valued at ₹25,800.35 crore for the fiscal year 2027-28. These transactions, primarily involving the purchase of regasified liquefied natural gas (RLNG), are critical for the company’s downstream operations and refinery feedstock supply.

The AGM will be conducted via Video Conferencing (VC) or Other Audio-Visual Means (OAVM) in compliance with Ministry of Corporate Affairs circulars. Shareholders holding shares as of the record date, Friday, August 14, 2026, are eligible for the dividend, which represents a 12.5% payout on paid-up equity capital. This final dividend is in addition to the first interim dividend of ₹5.00 and the second interim dividend of ₹2.00 per share already paid in December 2025 and March 2026, respectively.

Key Resolutions and Director Appointments

Beyond financial approvals, the Board has placed several key governance resolutions before shareholders. The meeting will appoint Shri Saumitra P. Srivastava as Whole-time Director and designate him as Director (Marketing). Srivastava, an IIT Roorkee civil engineer and MBA from SP Jain Institute of Management & Research, brings over three decades of experience in oil and gas marketing and strategy. He previously led the Corporate Strategy Department and played a pivotal role in the SPRINT transformation programme launched in April 2025.

Additionally, shareholders will appoint Shri A. Amarnath, an Indian Foreign Service Officer currently serving as OSD at the Joint Secretary level in the Ministry of Petroleum and Natural Gas, as a Government Nominee Director. Two existing directors, Ms. Rashmi Govil and Shri Arvind Kumar, retire by rotation and are eligible for reappointment. Ms. Govil, Director (Human Resources), brings nearly 30 years of HR leadership experience, while Shri Kumar, Director (Refineries), has over three decades of experience in engineering and project management.

Related Party Transactions with Petronet LNG

The most significant special business item involves approving material RPTs with Petronet LNG Ltd., a joint venture in which Indian Oil holds a 12.50% stake. The proposed transactions for FY28 total ₹25,800.35 crore, representing 2.86% of Indian Oil’s annual consolidated turnover for FY26 (₹9,01,453 crore). This value exceeds the SEBI-prescribed materiality threshold of ₹5,000 crore for entities with turnover up to ₹20,000 crore.

The pricing for RLNG purchases is linked to Brent crude prices, ensuring market-driven terms. Regasification charges are recovered fully from customers. The Board noted that these transactions are essential for supplying RLNG to Indian Oil’s refineries and customers, particularly through PLL’s Dahej terminal on the West Coast. During FY26, total transactions with PLL amounted to ₹12,715.28 crore, highlighting the strategic importance of this partnership.

Corporate Governance and Compliance

The AGM notice also includes resolutions to amend the Memorandum of Association (MoA) and Articles of Association (AoA) to align with the Companies Act, 2013. The new Object Clauses will bifurcate activities into "Main Objects" and "Ancillary Objects," adding scope for bio-refinery, hydrogen, ammonia, rare earth minerals, and data centers, while deleting obsolete clauses like cinematograph theatre construction. Furthermore, shareholders will ratify the remuneration of ₹26.85 lakh plus taxes for cost auditors appointed for FY27.

What the Numbers Show

The proposed ₹25,800.35 crore in RPTs with Petronet LNG underscores Indian Oil’s deep integration with its joint ventures for critical energy inputs. With RLNG purchases constituting over 97% of the transaction value, the company remains heavily dependent on PLL’s regasification infrastructure for its refinery operations. The increase from ₹12,715.28 crore in FY26 to the proposed ₹25,800.35 crore for FY28 suggests a significant ramp-up in LNG procurement, likely driven by higher refinery throughput targets or increased demand for cleaner fuels. This concentration risk is mitigated by the market-linked pricing mechanism, but it highlights the operational leverage PLL holds over Indian Oil’s downstream supply chain.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE242A01010/6b8a428f-b55a-489a-8d24-354574a6e0cb.pdf