Indian Oil Corporation has submitted its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26 to the stock exchanges, pursuant to Regulation 34(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, signed by Company Secretary Kamal Kumar Gwalani on August 7, 2026, has also been uploaded on the company's official website at www.iocl.com . The BRSR covers disclosures across all nine principles of the National Guidelines on Responsible Business Conduct (NGRBC) and has been independently assured by Bureau Veritas (India) Private Limited at a reasonable assurance level.

Key Financial and Operational Disclosures

The report confirms that CSR provisions under Section 135 of the Companies Act, 2013 are applicable to the company. The following key financial parameters have been disclosed:

The company operates across 837 national locations (792 plants and 45 offices) and serves customers in 36 states and union territories across India. Its permanent workforce comprises 18,929 employees, of whom 2,042 (10.79%) are female. The Board of Directors as on March 31, 2026 comprised 9 members, with 3 females representing 33.33% of the board.

Sustainability and Environmental Performance

Indian Oil Corporation has outlined a comprehensive sustainability strategy anchored to its commitment of achieving Net Zero operational emissions by 2046. During FY 2025-26, the company implemented 214 energy conservation (ENCON) initiatives across its operations, yielding the following outcomes:

The company has commenced construction of India's first large-scale Green Hydrogen Plant with an annual production capacity of 10 KTA at Panipat. Indian Oil Corporation secured the highest rank within the Indian oil and gas sector on the 2025 Dow Jones Sustainability Index (DJSI), reflecting its structured approach to emission profiling and greenhouse gas accounting. The company's sustainability disclosures are aligned with globally recognised frameworks including GRI, SASB, and TCFD.

Workforce Well-being and Human Capital

The report provides detailed disclosures on employee and worker well-being. All 18,929 permanent employees are covered under health insurance and accident insurance. Median remuneration details for key categories are as follows:

Gross wages paid to females as a percentage of total wages stood at 8.97% in FY 2025-26, compared to 9.95% in FY 2024-25. Return-to-work rates for permanent employees and workers following parental leave were 100% across both male and female categories.

CSR Initiatives and Community Engagement

Indian Oil Corporation's CSR programmes span healthcare, education, sports, and community development across multiple states. Key beneficiary data from select programmes includes:

• Comprehensive Cancer Care: Approximately 1 lakh beneficiaries per year
• TB Elimination Program: Approximately 27.00 lakh beneficiaries since FY 2022-23
• Sickle Cell Anaemia Eradication for Tribals in Karnataka: Approximately 2.11 lakh beneficiaries (100% from vulnerable groups)
• Renal Care Service through Dialysis Machines: Approximately 50,000 beneficiaries per year
• IndianOil Shakti Sports Program: 19 beneficiaries since FY 2025-26 (100% from vulnerable groups)
• IndianOil Divyashakti Program: 100 beneficiaries since FY 2025-26 (100% from vulnerable groups)

CSR spending in government-identified aspirational districts has been disclosed across multiple states. Notable allocations include ₹643.36 lakhs in Begusarai (Bihar) and ₹430.60 lakhs in Muzaffarpur (Bihar). The company has also partnered as a principal sponsor to support key events of the Paralympic Committee of India in the lead-up to the Los Angeles Paralympic Games 2028.

Governance, Procurement, and Compliance

The company reported nil monetary penalties, fines, or compounding fees during FY 2025-26 across all nine NGRBC principles. Total procurement from Micro and Small Enterprises (MSEs) during FY 2025-26 was 51.07% of annual eligible procurement, including MSE (SC/ST) at 4.03% and MSE (Women) at 3.39%. The company confirmed full compliance with applicable environmental laws including the Water (Prevention and Control of Pollution) Act, the Air (Prevention and Control of Pollution) Act, and the Environment Protection Act. The BRSR for FY 2025-26 has been prepared in accordance with SEBI's BRSR framework and forms an integral part of the company's ESG disclosures, to be read in conjunction with its Integrated Annual Report.

Indian Oil Corporation reported a standalone net loss of ₹2,661.37 crore for the quarter ended June 30, 2026 (Q1FY27), reversing a net profit of ₹11,377.51 crore in the preceding quarter. The sharp deterioration in profitability was driven by a collapse in operating margins, alongside a significant rise in debt levels to ₹1,41,453 crore. On August 1, 2026, the company held a conference call with analysts to discuss these financial results, with the transcript subsequently released under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The Maharatna oil marketing company recorded revenue from operations of ₹2,75,971.77 crore in Q1FY27, up from ₹2,32,855.33 crore in Q4FY26. However, EBITDA contribution declined sharply to ₹2,332 crore from ₹22,345 crore in the previous quarter, with EBITDA margin contracting significantly. Profit before tax stood at a loss of ₹3,274 crore compared to a profit of ₹15,322 crore earlier. Interest expenditure decreased slightly to ₹1,610 crore from ₹1,849 crore, while interest income fell to ₹252 crore from ₹342 crore. The company reported a Gross Refining Margin (GRM) of $15.59 per barrel, net of SAED.

Operational Highlights

Refinery throughput declined to 19.2 million metric tons (MMT) from 19.7 MMT in Q4FY26, with capacity utilization dropping to 109.4% from 113.9%. Distillate yield improved slightly to 80.2% from 79.0%, while fuel and loss percentage decreased to 8.0% from 8.1%. The utilization of high sulphur crude fell to 48.9% from 61.3%. Pipeline throughput increased to 28.5 MMT from 27.7 MMT, with capacity utilization rising to 79.9% from 78.3%. In marketing operations, inland sales of petroleum products fell to 22.542 MMT from 23.267 MMT. High-Speed Diesel (HSD) sales rose to 10.866 MMT from 9.938 MMT, while Motor Spirit (MS) sales increased to 4.522 MMT from 4.100 MMT. Conversely, LPG sales dropped significantly to 3.085 MMT from 3.997 MMT.

Capital Expenditure and Projects

The company incurred provisional capex of ₹6,461 crore in Q1FY27 against a target of ₹32,700 crore for FY27. Major projects are progressing towards their commissioning dates. The Panipat Refinery Expansion (15 MMTPA to 25 MMTPA) is at 94.0% physical progress, expected to be commissioned by December 2026. The Gujarat Refinery Expansion (13.7 MMTPA to 18 MMTPA) stands at 89.2% progress, targeted for November 2026. The Barauni Refinery Expansion (6 MMTPA to 9 MMTPA) is at 91.6% progress, also due in December 2026. The PX-PTA Complex at Paradip Refinery is at 94.6% progress, expected by August 2026. Additionally, the New Mundra Panipat Crude Oil Pipeline is mechanically completed and under commissioning.

Material Disclosures and Governance

As of June 30, 2026, the cumulative net negative buffer for domestic LPG under-recoveries stood at ₹29,729.95 crore. The Ministry of Petroleum and Natural Gas had approved compensation of ₹14,486 crore via letters dated October 3 and October 24, 2025. For Q1FY27, the company recognized ₹3,621.51 crore as revenue from operations regarding this buffer. Statutory auditors highlighted that the company did not have the minimum number of Independent Directors required under the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Consequently, the Audit Committee, Nomination & Remuneration Committee, and CSR Committee were discontinued effective March 28, 2026, and had not been reconstituted by the reporting date.

What the Numbers Show

The divergence between rising revenue and collapsing margins indicates significant pressure on refining economics and inventory valuation adjustments during the quarter. While the recognition of ₹3,621.51 crore in government compensation provided some offset, it was insufficient to counterbalance the operational headwinds in the core petroleum products business. The persistent governance gap regarding independent directors adds a layer of regulatory risk, potentially impacting investor confidence despite strong capital expenditure progress on key expansion projects.