IndianOil concluded 2025-26 with record highs in product sales, refining and pipelines operations, while accelerating its shift to green energy. With bold investments, new-age fuels and Project SPRINT in motion, the Company is reshaping itself into a future-ready, diversified energy leader.
A S Sahney
Chairman
Dear Shareholders,
I am pleased to present the Integrated Annual Report of Indian Oil Corporation Limited for Financial Year 2025–26–a defining year for the global energy sector.
The year unfolded against a backdrop of unprecedented geopolitical and economic uncertainty that reshaped energy markets worldwide. The year began with a major disruption to the global trading order with the imposition of reciprocal tariffs by the United States, followed by an additional duty on Indian exports linked to imports of Russian-origin crude oil. These developments were further compounded by escalating tensions in West Asia, culminating in disruptions to maritime trade through the Strait of Hormuz towards the close of the year. Despite these global headwinds, supported by growth-oriented policies, tax rationalisation, and strong institutional foundations, India’s growth story remained remarkably resilient.
The year also tested resilience of the nation’s energy supply chains on multiple occasions-from ensuring uninterrupted fuel supplies to the Armed Forces during Operation Sindoor, to navigating severe monsoon-related disruptions across several regions of the country, and later responding to supply challenges, especially in LPG arising from disruptions in trade flows through the Strait of Hormuz. Throughout these challenges, IndianOil leveraged the strength of its extensive nation-wide infrastructure network, operational flexibility, diversified sourcing, and dedicated workforce to ensure uninterrupted energy supplies across the nation. Our ability to respond swiftly to emerging risks while maintaining reliability underlined the resilience of our business model.
The year also marked the launch of Project SPRINT, our enterprise-wide strategic transformation programme. More than an initiative, SPRINT represents a new way of thinking about how your Company will grow, compete, and create value in an increasingly dynamic environment. It is founded on a simple yet powerful belief: enduring leadership is achieved not just by changing our purpose, but by continually strengthening our capabilities to fulfil that purpose more effectively.
India’s sound macroeconomic fundamentals, strong reform momentum, rapid urbanisation, expanding infrastructure and rising middle class continue to drive India’s economic growth and energy demand, positioning the country as the world’s fastest-growing centre for oil demand over the next decade. At the same time, the Government’s strategic focus on self-reliance in critical sectors, including clean energy, alongside its push to build globally competitive manufacturing and technology ecosystems, is creating unprecedented opportunities for sustainable long-term growth. As India’s flagship energy company, IndianOil’s SPRINT transformation aims to position your Company to effectively fuel India’s development aspirations. Structured around six pillars-Strengthening Core Businesses, Propelling Cost Optimisation, Reinforcing Customer Centricity, Integrating Technology and Innovation, Nurturing Leadership and Talent, and Ensuring Transition Readiness-SPRINT aligns the entire organisation behind an overarching goal: to build a stronger, more agile and future-ready IndianOil that delivers operational excellence, sustainable growth and enduring stakeholder value. The same is exhibited in various focus areas and strategic intent for the year as detailed below.
Butyl Acrylate Plant at Dumad, Gujarat Refinery
STRENGTHENING TODAY: DELIVERING OPERATIONAL EXCELLENCE
Rig drilling operations at PNW Akita 21-042, Canada
During the year, your Company recorded a turnover of ₹ 8.86 Lakh Crore, achieved sales of more than 105 MMT across petroleum products, natural gas and petrochemicals, and reported a net profit of ₹ 36,802 Crore despite a challenging global environment.
The Company delivered record-breaking performance across the downstream oil value chain. Refineries achieved the highest-ever crude throughput of 75.45 MMT, up from 71.56 MMT in the previous year, operating at an impressive 107.4% of installed capacity. Liquid pipelines (crude oil and petroleum products) also recorded highest-ever throughput of 102.52 MMT, surpassing the previous record of 96.92 MMT achieved in 2024–25. Highest-ever domestic petroleum sales of 88.97 MMT, compared with 84.96 MMT in the previous year were recorded as the Company maintained its leadership position in the downstream oil market in the country.
With a strong focus on high growth urban and highway locations, we commissioned 2,635 new retail outlets during the year, taking the total network to 42,818 outlets as of March 31, 2026. Our highway retailing proposition was further strengthened through the addition of new Wayside Amenities, enhancing customer convenience and experience. In parallel, we continued to expand our clean mobility ecosystem, with EV charging and battery-swapping facilities growing to over 15,000 locations, the CNG network increasing by 204 stations to 2,641 stations.
The strong growth in physical performance was accompanied by significant improvements in operational excellence across the value chain. Through focused efforts in energy efficiency, logistics optimisation, and process improvement, our refineries achieved their best-ever Energy Intensity Index (EII) of 90.1 and MBN of 65.7. Notably, Mathura and Panipat Refineries entered the top quartile of the Solomon Energy Benchmark for the first time, while all other refineries also improved their energy performance. These operational excellence initiatives, coupled with targeted cost optimisation across LPG bottling, aviation operations, and pipeline maintenance, generated savings of over ₹2,000 Crore during the year, strengthening both profitability and resilience.
The Company’s operational performance across its integrated and diversified energy value chain was equally impressive. Our petrochemicals business achieved a new milestone, with sales reaching a record 3.40 MMT (including exports and benzene), supported by record production, high on-stream factors, and superior product quality indices across our petrochemical complexes at Paradip, Panipat and other locations.
The Natural Gas business continued its strong growth trajectory, registering its highest-ever sales of 7.09 MMT (excluding captive refinery consumption). The City Gas Distribution (CGD) business delivered a significant turnaround during the year, transitioning from an EBITDA loss to a positive EBITDA position, reflecting the growing scale and commercial viability of our gas portfolio.
Pipeline realignment using micro-tunneling technology at Beki river, Barpeta, Assam
Our upstream business continued to strengthen its contribution to energy security. During the year, we achieved important milestones, including the commencement of commercial gas production from our participating CBM block in Jharkhand and first oil production from the Jyoti-1 well in Gujarat, from our wholly-owned subsidiary, IndianOil Upstream Ventures Ltd. (IUVL). Internationally, our upstream ventures recorded encouraging exploration success with two new oil discoveries in Abu Dhabi’s Onshore Block 1—an unconventional oil discovery at Shilaif and a conventional oil discovery at Habshan. These discoveries, made through Urja Bharat Pte. Ltd. (UBPL), the 50:50 joint venture between IndianOil and Bharat PetroResources Ltd.(a WoS of BPCL), underscore the prospectivity of the concession area and represent a significant achievement for IndianOil as an international upstream operator.
The West Asia crisis proved to a litmus test of IndianOil’s operational agility and resilience. Despite disruptions to traditional supply chains and a significant shift away from Middle Eastern crude grades, our refineries maintained utilisation levels above 100% while increasing LPG production by nearly 30% to meet domestic demand. Simultaneously, our gas business ensured uninterrupted supplies to priority sectors by optimising allocation from our long-term gas portfolio, maintaining full supplies to City Gas Distribution networks.
Research & Development Centre pioneering indigenous petroleum and energy technologies
and essential supplies to fertiliser units, while securing additional LNG from diverse geographies. We also expanded PNG connectivity, supported industrial customers through alternative fuel solutions, and leveraged innovative logistics measures, including dual-port LNG cargo discharge. These actions enabled us to effectively navigate a period of exceptional uncertainty while safeguarding the nation’s energy security & economic stability.
Underpinning our operational excellence has been disciplined financial management and strategic capital deployment. During 2025–26, IndianOil reduced its overall debt supported by strong profitability, robust internal cash generation and effective working capital management taking its Debt – Equity ratio to 0.54 from 0.75 in the previous year. This substantial deleveraging reflects our unwavering commitment to capital discipline and financial resilience during the energy transition phase. Beyond debt reduction, we have further strengthened our treasury capabilities through our GIFT City platform, which has emerged as a key enabler of efficient capital allocation across the Group. Cumulative financial transactions of your company’s wholly owned subsidiary, IOC Global Capital Management IFSC Ltd. (IGCMIL) exceeded USD 1 billion across India, the US, Singapore, UAE, Sri Lanka, and Mauritius till 2025-26. By pooling surplus funds from entities across geographies and redeploying them to businesses with funding requirements, we have optimised borrowing costs, enhanced liquidity management and improved capital efficiency. This integrated approach to financial management—combining operational cash generation, centralised treasury management and strategic capital deployment—strengthens our ability to fund critical infrastructure investments, navigate commodity price volatility and deliver sustainable shareholder returns.
IndianOil’s long-term strategy is anchored in expanding capacity across its core businesses while simultaneously building the energy platforms that will power the future.
PREPARING A FUTURE READY ORGANISATION
“The more you sweat in peace, the less you bleed in war.” This philosophy resonates strongly with IndianOil’s relentless approach to building resilience and preparing for the future. Through sustained investments in infrastructure, technology, and capabilities, your Company continues to strengthen its foundations while creating new avenues for growth.
Reflecting its strong commitment to nation-building and energy security, the Company has consistently invested more than ₹30,000 Crore annually over the past five years to create robust energy infrastructure. During the year, capital expenditure of ₹32,405 Crore was incurred. These investments are strengthening India’s energy infrastructure, enhancing operational flexibility, and supporting the nation’s energy security as well as energy transition objectives.
Our major ongoing projects include refinery expansion projects at Gujarat, Panipat, and Barauni, which are in their final stages of completion and are expected to be commissioned during the current financial year. In parallel, significant investments are being made in the pipeline network required to feed the expanded refining capacities. During the year, the augmentation of the Salaya–Mathura Crude Oil Pipeline, undertaken to support the Gujarat Refinery expansion, was completed. The New Mundra–Panipat Crude Oil Pipeline, is also in the final stages of completion. Through our joint venture company, IHB Ltd., we are developing what is envisioned to be the world’s longest LPG pipeline. The 2,805-km Kandla–Gorakhpur LPG Pipeline project is progressing steadily, and during the year, the Kandla–Bhopal section was completed. Alongside we are making targeted investments across our downstream value chain, while strengthening supply-chain resilience through the expansion and modernisation of terminals and depots across the country.
India’s growth story presents a diverse bouquet of opportunities across our downstream oil businesses. We are doubling down on high-growth avenues in bitumen, aviation fuels, lubricants, bunkering fuels, and non-fuel retail, driven by the country’s rapid infrastructure development, urbanisation, rising mobility, and expanding industrial activity.
The lubricants business remains a key strategic focus for the Company, driven by India’s expanding industrial base and rapidly growing automotive sector, which is already the world’s third-largest automobile market. During the year, we commissioned the world’s second-largest integrated lube blending plant at Chennai, with a capacity of 672 KTPA, significantly enhancing our manufacturing capability and commenced production of Group III/III+ base oil, strengthening supply security and supporting import substitution. We also continue to leverage our R&D capabilities to develop advanced, high-performance lubricants and accelerate product indigenisation. As the automotive lube market moves toward premiumisation, we are expanding our portfolio of premium lubricants.
BUILDING GREEN GROWTH ENGINES & SUSTAINABLE FUTURE
lubricants to meet evolving customer needs and further strengthen our market leadership.
India’s strategic location along the East–West maritime corridor-one of the world’s busiest shipping routes, together with the Government of India’s Maritime Amrit Kaal Vision 2047 to position the country as a global bunkering hub, present a significant opportunity in the marine fuels business. Leveraging our extensive refining capabilities and presence across domestic and international ports through our wholly owned subsidiaries-Lanka IOC PLC and IndianOil (Mauritius) Ltd., we are exploring growth opportunities in this underserved segment through diversified sourcing strategies, new ports and new fuels.
We are also unlocking value from IndianOil’s extensive engineering and project management capabilities by expanding our presence in the EPCM services business. We are currently executing external pipeline projects covering more than 3,000 km, in addition to several other energy infrastructure projects. This business is expected to emerge as an important growth driver in the years ahead.
Recent geopolitical developments in West Asia have reinforced the critical importance of energy security and resilient hydrocarbon supply chains. In line with India’s objective of reducing import dependence and strengthening energy resilience, your Company continues to invest in promising domestic exploration and production opportunities, supported by ongoing policy reforms to accelerate hydrocarbon development.
Further to strengthen the nation’s energy security architecture, IndianOil has partnered with Shipping Corporation of India and others to jointly acquire and operate a fleet of vessels, an initiative aligned with the Government’s Atmanirbhar Bharat vision that will enhance India’s maritime capabilities and provide greater control and reliability in the transportation of crude oil and petroleum products.
Alongside our traditional strengths, we are building the growth engines that will define the next phase of IndianOil’s evolution.
We have set a target of increasing natural gas sales by 1.5 times by 2030, reflecting our conviction that natural gas will play an increasingly important role in India’s evolving energy mix. To support this growth, we will continue to expand our natural gas infrastructure, including pipelines, City Gas Distribution (CGD) networks, LNG import and handling facilities, and LNG fuelling stations, strengthening our position across the gas value chain.
IndianOil tank truck delivering product to Army unit in Chhanggu, Sikkim
As mobility patterns evolve globally, value-added petrochemicals will play an increasingly important role in diversifying revenue streams and strengthening India’s manufacturing ecosystem. We are expanding our petrochemicals portfolio with a focus on import substitution, specialty chemicals and recycled products to meet growing domestic demand, maximise value from every hydrocarbon molecule. During the year, the commissioning of the Acrylics and Oxo-Alcohol Project at Gujarat Refinery marked IndianOil's entry into high-value petrochemicals, strengthening downstream integration through the indigenous production of acrylic acid, butyl acrylate and normal butanol.
Equally fundamental to our future is our unwavering commitment to responsible and sustainable growth. We view circularity as a significant growth opportunity that can create sustainable business streams while advancing our decarbonisation goals. Alongside plastic recycling, we are exploring used lube oil recycling opportunities under the emerging Extended Producer Responsibility (EPR) framework. We also see significant potential for circularity in our green molecules portfolio, which will play a critical role in decarbonising hard-to-abate sectors. Whether through Compressed Biogas (CBG), Sustainable Aviation Fuel (SAF), or synthetic fuels, we are exploring innovative pathways to transform waste and emissions into valuable low-carbon products, supporting both resource efficiency and the energy transition.
During the year, the Company became the first company in India to receive ISCC CORSIA certification for Sustainable Aviation Fuel (SAF) production at its Panipat Refinery, positioning India on the global SAF map. In addition to SAF production based on co-processing we are exploring potential collaboration opportunities in setting up Hydro-processed Esters and Fatty Acids (HEFA) and Ethanol to Jet based SAF projects.
Advancing India’s National Green Hydrogen Mission, we commenced construction of the country's first large-scale Green Hydrogen Plant at our Panipat Refinery and Petrochemical Complex. IndianOil has also been a pioneer in promoting hydrogen-based mobility in the country- we are operating a fleet of 15 hydrogen fuel cell buses, which has cumulatively covered over 1.7 Lakh kilometres. Building on this experience, we are now advancing hydrogen mobility further through the development of hydrogen refuelling infrastructure with support from National Green Hydrogen Mission's mobility initiative.
Also, during the year, we commenced development activities for 1 GW of renewable energy capacity through our Wholly Owned Subsidiary- Terra Clean Ltd., with preparatory work underway for an additional 4.3 GW—laying the foundation for a larger renewable energy portfolio and further entrenchment across the green value chain, including critical minerals.
Technology will be the defining enabler across all these ambitions. Our Research & Development Centre continues to demonstrate that technological excellence and national self-reliance can go hand in hand. Through the development of indigenous catalysts, advanced fuels, specialty chemicals, circular economy solutions
Chairman with team Panipat Refinery and Petrochemicals Complex
and cleaner technologies, our scientists are enhancing operational competitiveness while contributing meaningfully to the vision of Atmanirbhar Bharat. Entering into the league of commercialised world class technologies, IndianOil’s patented Drag Reducing Agent (DRA) technology was successfully deployed in Oil India Limited’s Naharkatia–Barauni Pipeline and has also generated interest for international uptake. Another notable achievement was the successful development and commercial demonstration of India’s first enzyme-assisted low-energy CO₂ capture technology, eCO2Sorb, supporting our Net-Zero 2046 aspirations. As we move forward, we remain committed to developing commercially viable, environmentally responsible and globally competitive technologies that reduce import dependence, optimise costs and create long-term value.
We are leveraging digital technologies, artificial intelligence, advanced analytics and automation across our value chain to transform decision-making, improve operational efficiency, enhance productivity and deliver superior customer experiences. Additionally, as the world enters the age of AI and data-driven innovation, demand for secure and scalable digital infrastructure is growing rapidly. Recognising this opportunity, IndianOil has identified digital business—including data centres, sovereign cloud and allied digital services—as a key future growth area. Backed by decades of operational and technology expertise, a robust nationwide digital footprint and an extensive optical fibre network connecting our assets across the country, we are well positioned to participate in India’s digital transformation. We are actively exploring collaborations with leading players in AI, cloud computing and digital infrastructure to drive innovation and create new growth avenues.
Equally fundamental to our future is our unwavering commitment to responsible and inclusive growth. During 2025–26, IndianOil implemented over 700 CSR projects with an expenditure of ₹488.63 Crore, sustaining our focus on healthcare, education, skill development, sports, and community well-being. From strengthening cancer care, tuberculosis elimination, and rural healthcare services to supporting educational institutions and inclusive learning initiatives, our programmes continue to create meaningful impact across the country. Particular emphasis is placed on reaching underserved and remote communities, including tribal populations, aspirational districts, and the North-Eastern region, ensuring that the benefits of development reach those who need them most. Through initiatives such as IndianOil Acers, IndianOil Shakti, and IndianOil DivyaShakti, we also continue to nurture sporting excellence and promote inclusion. These efforts reflect our belief that sustainable growth must create lasting value not only for shareholders, but also for the communities we serve.
Sustainable growth ultimately requires balancing the interests of shareholders, society, and future generations, and this principle will continue to guide every decision we make.
The commitment, competence, and dedication of our people is the bedrock of all our achievement and key to fulfilment of our ambitious plans for the future. I am privileged to lead a highly motivated and engaged team that continues to embody IndianOil’s values in every sphere of activity. We remain committed to investing in our human capital through structured technical, functional, and behavioural learning programmes, while a robust succession planning framework ensures continuity of leadership and seamless transfer of institutional knowledge across business lines. Equally important is our focus on the well-being of employees and their families. It is our constant endeavour to foster a work culture that is innovative, responsive, inclusive, and empathetic, enabling every IOCian to realise their full potential while contributing to the Corporation's long-term success.
The road ahead will undoubtedly present new challenges, but it will also create new possibilities. We are confident that the strategic choices we are making today will strengthen IndianOil’s competitiveness, enhance long-term shareholder value, and reinforce our position as India’s leading integrated energy company for decades to come.
Your continued trust in IndianOil inspires us to raise our aspirations, pursue excellence with renewed determination, and create lasting value.
Sd/-
A.S.Sahney
Chairman