Indian Oil Corporation Ltd (IOC) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- Management is projecting domestic LPG under-recoveries to surge to approximately INR 370 per cylinder in December 2026, up from INR 184 in September.
- Refinery expansions at Panipat, Barauni, and Gujarat are 90-95% complete and targeted for commissioning in FY27, with earnings benefits expected from FY28.
- The company's crude sourcing is now 87% spot purchases, a major strategic shift from 50% previously, with Russian crude accounting for 55% of H1 FY27 imports.
Performance Overview
- Indian Oil Corporation Ltd reported a significant turnaround with a strong net profit in Q2 FY27, successfully navigating extreme volatility in global energy markets.
- The company demonstrated operational resilience by maintaining high refinery throughput of 18.1 MMT with a capacity utilization of 102.3%.
- Strategic diversification of crude oil sourcing was a key theme, with increased imports from Russia (55% of H1 sourcing), Venezuela, and Brazil to mitigate geopolitical risks and optimize costs.
- Significant progress was noted in strategic projects, including the near-completion of refinery expansions at Panipat, Barauni, and Gujarat, and advancements in the renewable energy portfolio.
- Despite market challenges, the company managed to reduce its borrowings to INR 1,16,578 crore from INR 1,41,453 crore in the previous quarter, strengthening its balance sheet.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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Tone & Disclosure
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