Thank you, Abhijeet. Good afternoon, ladies and gentlemen.

It's our pleasure to welcome all the participants to the first quarter FY27 results call of Indian Oil Corporation. We have with us Mr.

Anuj Jain, Director of Finance; Mr. Nitin Kumar, ED Corporate Finance and Treasury; Mr.

Pramod Jain, CGM Treasury. Without much ado, I would like to hand over the floor to Mr.

Anuj Jain for his opening remarks.

Thank you, Mr. Varatharajan.

Dear investors and analysts, a very good afternoon to all of you. I take this opportunity to welcome all of you to the conference call organized by us post announcement of the first quarterly results of financial year 2026-2027.

I thank each one of you for joining the call. I trust you have had an opportunity to review the results we have posted on our website, exchanges, and the updates that have been shared with you.

In today's call, we would like to walk you through our performance for the quarter gone by, provide some insights on the broader macroeconomic context and also share with you the strategic initiatives we are pursuing to strengthen our position as India's largest energy company. Before I move to the operational and financial highlights, let me briefly touch upon the evolving geopolitical developments and their implications for the global energy markets.

Since the last call, the global energy landscape has continued to evolve at a rapid pace. While the announcement of a 60-day truce between the United States and Iran in mid-June shown signs of moderation in concerns over supply disruption, the overall environment remained marked by geopolitical uncertainty, evolving sanctions, and the reconfiguration of global trade and energy flows.

Recent renewed military escalations in the Middle East have once again brought the security of critical maritime energy corridors, particularly the Strait of Hormuz and the Red Sea, into sharp focus, reminding us that volatility remains an inherent feature of the global energy ecosystem. Energy security now depends not only on resource availability, but also on resilient supply chains, diversified sourcing, and operational agility in a complex global environment.

I am pleased to inform that IndianOil has once again demonstrated these strengths by ensuring uninterrupted energy supplies across the country with reliability and resilience. IndianOil continues importing secure, reliable, economically competitive crude oil grades from diverse countries while managing challenges of high market volatility, logistics challenges in terms of ships, insurance, freight costs, among other things.

Amidst disruption, we diversified our sourcing by increasing imports from other geographies like Russia, Venezuela, Brazil, and even from African countries, thereby ensuring continuity of crude oil imports to maintain our planned refinery operations. The spot imports for the quarter stand at about 84%, against 51% in the last year.

As regards our operational performance for Q1 FY26-27, we reported a net loss of ₹2,661 crore compared with a profit after tax of ₹11,378 crore in the preceding quarter, that is quarter four of financial year 2025-2026, and profit after tax of ₹5,689 crore in the corresponding quarter of financial year 2025-2026. The reported loss need to be viewed in the context of heightened geopolitical tensions and ongoing conflicts, which led to significant volatility in the international crude and product prices and exerted considerable pressure on marketing margins on retail fuels, particularly impacting the quarter's profitability.

Revenue from operations during the quarter stood at ₹2,75,972 crore against ₹2,32,855 crore in the immediately preceding quarter of this year. The sequential increase in revenue was mainly driven by higher product prices.

The revenue for the corresponding quarter of financial year 26 was ₹2,18,608 crore. While the global environment remained uncertain, with geopolitical developments continuing to pose challenges for energy markets, our commitment remains steadfast.

We remain fully committed to safeguarding the nation's energy security and ensuring uninterrupted energy supplies across the country while navigating these challenges with operational resilience and supply chain agility. At the same time, our focus extends firmly beyond the immediate environment.

We continue to maintain a strong emphasis on long-term strategic growth initiatives aimed at strengthening our core businesses, expanding our capabilities across the energy value chain, and supporting India's growing energy requirements. Friends, now the operational and financial highlights will be briefed by Mr.

Nitin Kumar, Executive Director Corporate Finance and Treasury. Over to you, Nitin.

Thank you, sir. Dear investors and analysts, very good afternoon.

Kindly note that today's discussion may include forward-looking statements, which are based on currently available information, assumptions, and expectations, and are subject to uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied. Participants are advised to refer to the company's latest filings with regulatory authorities for a more detailed discussion on the risks and uncertainties.

Before turning to our numbers, let me briefly touch upon the macro backdrop against which this quarter played out. The US Federal Reserve has held its benchmark rate in the range of 3.5% to 3.75% through the quarter, with elevated inflation readings keeping the door open to further tightening rather than cuts.

On the domestic front, the RBI's Monetary Policy Committee has similarly kept the repo rate unchanged at 5.25%, maintaining a neutral stance, even as it flagged upside risks to inflation from elevated crude prices and global geopolitical tensions. Taken together, these signal a continued higher yield environment for the foreseeable near term.

Coming to the forex markets, the rupee remained volatile during Q1 of this year, depreciating to a quarterly low of about 96.83 per USD in mid-May on US-Iran escalations and the Strait of Hormuz closure, before recovering to around 94.67, aided by RBI's measures and US-Iran ceasefire announcements. Rupee is currently trading in the range of 95-96 per USD and continues to remain under pressure driven by global geopolitical developments.

As per PPAC report, MS and HSD consumption grew a healthy 7.5% sequentially over the previous quarter, reaffirming the resilience of India's mobility and industrial demand, even amidst calibrated pricing adjustment in response to volatile global markets. ATF volumes, however, contracted by around 5%, reflecting suspended international routes following recent airspace closures and softer air travel on the back of higher fares.

LPG volumes declined by roughly 20%, largely a structural outcome of tighter regulatory norms on commercial supplies and the government's demand optimization measures. Monsoon, after a weak start, has since picked up its momentum, though distribution across regions remain uneven.

The progress of the monsoon will remain an important variable for rural demand, agriculture output, and consequently for fuel consumption patterns in the agri and mobility segments. The average price of crude, that is Indian basket, during this quarter increased to $100.74 a barrel from $83.01 a barrel in the immediately preceding quarter, that is Q4 of 25-26, which tantamounts to increase of about 21% due to ongoing US-Iran conflict leading to supply disruptions.

Now let me briefly touch upon the quarterly performance highlights. While we responsibly absorbed a portion of international crude spikes to shield the domestic market from inflationary pressures, our overall volume footprint remained solid, uniquely positioning us for rapid margin recovery as global energy dynamics normalize and our optimized product mix takes full effect.

Talking about the numbers, now let me briefly touch upon the major verticals. Refineries: during the quarter, refinery achieved crude throughput of 19.2 MMT, with a capacity utilization of 109.4%, in comparison to throughput of 19.7 MMT and capacity utilization of 113.9% during the preceding quarter.

For Q1 25-26, the throughput was at 18.7 MMT, with capacity escalation of 106.7%. Our refineries have achieved lowest ever quarterly fuel and loss of 8.04% post BS-VI scenario.

Pipelines: during the quarter, pipeline has achieved highest ever quarterly throughput of 28.5 MMT, with capacity utilization of 79.9%, vis-a-vis 27.7 million metric ton during the preceding quarter, with capacity utilization of 78.3%. During the corresponding quarter of 25-26, the capacity utilization was about 73.5%, with throughput of 26.3 MMT.

Marketing: the total sales volume during the quarter was 26.211 MMT, as compared to 27.343 MMT during Q4 25-26, and 26.328 MMT in Q1 of financial year 25-26. During the quarter, 320 retail outlets were commissioned, taking the total number to 43,138.

Recently, IndianOil has launched Indane XTRALIGHT Now, a 10 kg composite LPG cylinder offering with express 4-hour home delivery. Simultaneously, the popular 5 kg Indane Chhotu cylinder will also now be available on express home delivery, along with 10 kg XTRALIGHT Now cylinder.

Indane XTRALIGHT Now offers customers a smart LPG experience through express delivery, minimal documentation, seamless digital booking, and enhanced convenience. Launched initially in Pune, Gurugram, Indore, and Coimbatore, the offering will subsequently be expanded to other cities in a phased manner.

Petrochemicals: the sale of petrochemical products, including exports, during this quarter was 0.768 MMT, compared to sale of 0.901 MMT in the preceding quarter. Gas: during the quarter, we registered gas sales of 1,873 TMT, which includes CGD sales of 67 TMT, as compared to total gas sales of 1,814 TMT, which includes CGD sales of 54 TMT during the preceding quarter.

Renewable energy: our wholly owned green subsidiary company, TerraGreen Limited, has received connectivity approval of 2.6 GW capacity on central transmission utility and state transmission utility. Project activities are in progress for setting up 100 MW wind power project in the state of Gujarat.

Additionally, UPNEDA, which is Uttar Pradesh New and Renewable Energy Development Agency, has allotted 423 acres of land in the state of Uttar Pradesh for development of solar power plant of around 100 MW. TerraGreen Limited is aggressively exploring commercial and industrial customers across India for providing reliable green power through long-term power purchase agreements under the group captive open access mode.

IndianOil is working to strengthen its position at the forefront of India's biofuel and energy transition agenda, aligning with nation's twin objectives of energy security and decarbonization. Across hydrogen and green hydrogen, ethanol, biodiesel, compressed biogas, and sustainable aviation fuel, the corporation continues to scale commercial capacity and deepen its partner ecosystem.

Capex: during April to June '26, the company incurred a total capex of ₹6,461 crore, encompassing investment across verticals. The budgeted capex target for this year is ₹32,700 crore.

These investments are aligned with our long-term strategic roadmap and national energy priorities. The major refining and petrochemical expansion projects across Panipat, Barauni, Gujarat, and Paradip are at advanced stage of execution and are targeted for completion during 26-27.

Phase-wise commissioning of process units, utilities, offsite facilities are being undertaken in a structured manner to enable progressive capacity buildup and integration. As far as Panipat refinery expansion is concerned, it is expected to be completed by December '26, Barauni by December '26, and Gujarat by November '26.

Borrowings: with respect to the borrowing levels, the borrowing as on 30th June '26 was at ₹1,41,453 crore level, compared to ₹1,10,668 crore as on 31st March '26. The increase in the borrowing was mainly on account of higher working capital requirements.

As on 30th June 2026, the company's gross debt-equity ratio stood at 0.71, reflecting a comfortable leverage profile. After adjusting for financial investments, the net debt-equity ratio further strengthens to 0.51, positioning us well to pursue growth opportunities, absorb market volatility, and maintain financial strength across cycles.

With these words, I take a pause here and request Director Finance for his further remarks.

Thank you, Nitin. I would like to extend my sincere appreciation to our investors and all stakeholders for their continued confidence and support.

As India's energy landscape evolves, we remain committed to playing a pivotal role in meeting the country's rising energy demand while simultaneously advancing the nation's energy transition objectives. We will continue to pursue growth with discipline, resilience, and with long-term perspective, creating sustainable value for all of our stakeholders.

With that, I will end my briefing here. We would now be happy to take your questions.

Thank you.

Thank you for the opportunity, sir, and congratulations for a resilient performance in what has been a very challenging quarter. My first question was actually a slightly broader one from a capex standpoint.

The presentation shared earlier by the company very clearly shows that most downstream investments will actually be completed in calendar year '26. Just wanted your view on how you are looking at capital allocation for maybe the next two to three years.

Will renewable be almost taking up entire amount of focus? Are there any downstream, brownfield or greenfield projects that we're still looking at?

Just your perspective on how the capital allocation for IOCL would look like, sir, from a two to three-year perspective will be very useful. That's my first question.

Thank you. As you have known that we normally do a capex between ₹30,000 crore to ₹40,000 crore in a year, and our major expansions are getting over in this year itself.

If you see from next year onwards, we still have many petchem projects where our capex will continue to be spent. As you are aware, we plan to enhance our petchem intensity from 6.5% to 15%.

Estimated capex on the same would be around ₹1 lakh crore over next five to six years. All these projects are in the various stages of approval.

As a thumb rule, various projects are under discussion, whether it's renewables, whether it is petchem, biofuels, or we are also, you have seen shipping, we are trying to acquire few ships. All these put together, our capex should be between ₹30,000 to ₹40,000 crore in next two to three years also.

Got it, sir. That's pretty useful.

The second question was more about, in this quarter, the GRM that you have mentioned, which is net of SAED, if the SAED or export tax was not there, just as a hypothetical, what would the normalized GRM have looked like? If we can quantify the SAED impact on a per-barrel basis?

See,

you know our reported GRM is $15.59 per barrel,

and see,

GRMs depend upon many factors, but to be very specific, if you add SAED, it would be around $36 per barrel for Indian Oil Corporation.

That would have been the gross number if we were

to

include SAED.

Yes, $36.

Got it, sir. One last question, if I may, sir.

How much has LPG loss per cylinder reduced in the current quarter, and what was it per cylinder for us in 1Q? See, as you see that

I will give you the month-wise data. In the month of June, okay, after the price revision, my under-recovery per cylinder was in the range of ₹665 per cylinder, which in the month of July, the figures may vary, but it was around ₹475 per cylinder.

August it came down because the Saudi CP came down significantly,

and

you know that the Saudi CP came down from 796 to 592.

Right.

Saudi CP has again gone up from 592 to 632. We expect that during this quarter, it should be around ₹250 per cylinder.

That would be the average roughly, is what we're anticipating.

That would be average in Q2, assuming that the same Saudi CP continues for the next month as well.

Understood.

The under-recovery has come down significantly vis-a-vis July.

Got it, sir. Thank you so much.

That was very useful. I'll come back in the

queue. I would also add that everything depends upon the geopolitical situation.

You would have seen that we were seeing the downward trend, suddenly it has started showing upward trend.

Right. No, of course, sir.

That is obviously there. Appreciate that.

Thank you, sir.

Good afternoon. Two questions.

Firstly, was there any inventory impact on the GRMs in Q1, and also on the marketing side was there any inventory impact?

See, yes, there was a inventory impact on GRMs, and there was an inventory gain on finished goods. If you talk about crude side, we had an impact of $3

to $4. That was loss or gain?

It was a loss.

Okay.

In case of finished goods, we had a gain. That also helped us to mitigate our losses for this quarter.

Finished goods gain could be around ₹6,000-7,000 crore, I'm just making a rough cut guess based on some of your peers?

No, it was a little bit on the higher side because, as we are carrying a huge inventory in our system, it was around ₹15,000 crore.

₹15,000 crore for the quarter.

Yeah.

Fair enough. This was mostly for all the products, right?

Petrol, diesel, LPG, everywhere there were price increase.

Yes.

Okay.

Not because of price increase, there are many other factors, I don't want to say it was on account of price increase. It was on account of variation in the pricing.

Okay. Fair enough.

Sir, secondly, on your projects, can we see full impact of the refining projects in FY28 in terms of any escalation in GRMs also, or that could take some time? I know you've taken it up in the past also, sir, but can you just again revise us on what is the expectation?

Also the PX-PTA project which you have stated that it will commission soon, when that is expected to add to earnings? See,

as we have said that, yes, our most of the projects are going to be commissioned in the quarter three of 26-27. Definitely our installed capacity will go up, and all the time the refining throughput will come in series.

Next year, definitely our crude projection is definitely on a higher side, we expect in 27-28, my throughput should be somewhere around 85 MMTPA.

Right, and any GRM accretion?

GRM, you see, GRM will all depend upon the play between the crude oil prices and the product prices in the international market, we cannot predict what would be the GRM next year.

Sir. Fair enough.

Thank you so much, and all the best.

Yeah.

Hi, sir. Good afternoon, and thanks for the opportunity, and once again, congratulations on a very resilient performance.

This was a very difficult quarter. Sir, following on the question of previous participant, once our refining expansions are concluded, of course, commenting on GRM is difficult, but can you comment on yield?

Would it be possible for us to improve our yield over 80% that we usually have from our refinery? See,

you already know that this is one of the best performance distillate yield, and our losses are also minimum, and we continue to improve it. With the new modern expansion happening, we definitely expect that our GRMs should improve.

Okay. Sir, what kind of yields can we expect?

Can we expect that our yield would improve to mid-80s? Is that a possibility from 80%?

I can't give the specific number, but I would say that since IOC will be able to process higher portion of value-added products, the returns are definitely going to go up.

Okay. Right, sir.

Sir, secondly, I just wanted to understand a little bit on our pricing policy. Previous quarter was, of course, an anomalous one, but mid-May onwards, we did take some price increase.

Given that crisis in West Asia has again flared up, right? Where do we stand in terms of petrol and diesel?

Are we making losses in these products again? Are we considering any price revisions if you can comment on that?

How do we go about understanding your pricing action if we have to going ahead? See,

as far as pricing is concerned, it is very, very dynamic. Situation is so dynamic that you can see it is changing on day-to-day basis.

Broadly, I can say that we remain engaged with the concerned authorities on this issue, and particularly, I talk about the LPG, that we are hopeful that we would be getting reasonable support from the Government of India on LPG. Based on the past experience also, we have seen that government has fully extended support to PSU OMCs.

Therefore, on LPG, based on the past practice, we are confident that suitable compensations for LPG under-recoveries will be considered. Yes, there would be uncertainty in the timing of compensations and the quantum, but we are definitely sure that on LPG part, we are going to get support.

As far as the other products are concerned, the situation remains very dynamic and many factors affect the pricing. It depends upon the crude cost, the product margins, exchange rate movements, freight market, insurance markets, inventory gain and losses, so many things will be affecting.

All these factors would be considered, and appropriate decisions will be taken.

Sure, sir. Sir, lastly, if I may just continue on the pricing question.

What was that increase in the commercial diesel price that we had taken? The retail, I suppose, was ₹7.5, but how much was the commercial diesel price change?

If you may please highlight that, and also what is the portion of commercial diesel sales in our overall diesel sales?

Just give me one minute. See, commercial diesel prices are always moving in tandem with the international market,

because

HSD prices for commercial consumers are always linked to the international market prices, and based on the contractual terms, whatever discounts, it is being passed as per the contractual terms. I would broadly say that even today, the prices have got modified, for these things, the product prices move on as per the

Any indicative number in rupees per liter that you can tell us, which we are charging for commercial consumption? See,

if you say, 10% to 15% of our total HSD volume is bulk volume. On that factor, if you want to factor in that these prices would be moving as per the international prices.

All right, sir. Understood, sir.

Thanks so much, sir, for answering my questions. I'll get back in the queue.

Better,

if you want to have a specific data, my team would be happy to give you after this con-call, what have been the consumer prices in the past of three to four months.

Great, sir. That would be really helpful.

Thanks so much for answering my questions, sir. Really appreciate it.

Hi. Thanks for the opportunity.

I have two questions. The first one is with respect to the landed cost of crude.

If you can help us understand the buildup of that, let's say physical costs plus insurance and freight, and how does it compare versus let's say 4Q, or let's say just when the crisis began in March, how much of a premium or discount on the Brent were you getting crude landed in India versus how it is now, and has there been any change in trend in the last month also? That'll be great if you can help us with that.

That's my first question. The second one is on the supply chain, what more can you do in terms of, let's say, improving the agility of Indian oil companies to source crude without being at the mercy of market vagaries?

I understand that there is some MoU between the MoPNG and Ministry of Shipping. Is there any progress there if you can talk about this topic?

Thank you very much. Okay.

See, whenever we talk about crude prices, I think it would be very important to benchmark. At what benchmark we were buying before the war happened and what we are doing today.

Roughly, I can tell you, because it keeps on changing on each transaction what we are doing. Pre-war, generally, IOC was buying Brent minus $1 or $2 in the market.

Since the war has started, you all know that the crude oil prices went very high, we had a procurement cost of around $10 per barrel over Brent during the peak of the war. It keeps on changing.

Overall impact, I would say, it was somewhere around $10, if you see. In the month of July, again it came down to $2 to $3 per barrel, and again it is going up.

It is moving on a fortnight-to-fortnight basis, or day-to-day basis. Yes, on a overall thumb rule, you can say there was an impact of $10 per barrel on the peak of the war situation.

Okay. Coming to your second question that what we are doing for the supply chain, I think I would say definitely we have diversified our portfolio.

You would have seen that we are not dependent on one single source. Yes, Middle East remains to be the main source, but we have diversified our sourcing: Russian crude, whether it is West African crude or Latin American crude, all these crudes have significantly diversified.

Based on the geopolitical situation, we keep on changing our sourcing strategy. You would have seen that now even in the past quarter, since the Middle East volume got affected, we have increased our procurement from South America, we have increased our procurement from West Africa, Russian, Venezuela, even USA, few cargoes came.

It was a well-diversified procurement strategy, which helps a company like IndianOil to that. Now coming to your third question regarding what is the status of the JV MoU between the MoPNG and Shipping?

Yes, that is also one of our strategy, which even started before the war started. We wanted to have a shipping tonnage security as well.

I would say under the aegis of MoPNG and Ministry of Shipping, on 19th September, a non-binding MoU was signed. In this, IndianOil shall be exploring to procure four MR vessels to start with.

This is a JV where we have other oil and gas partners would be there. This working is going on, tenders are already out, we are just seeing how much we can have a tonnage security by way of this joint venture company.

Thanks, Anuj, for the detailed answer. Just one follow-up on the first question.

The $10 overall impact that you mentioned, this is versus the Brent crude, and secondly, does it include shipping and logistics cost, or is it

It is all inclusive.

This for the overall portfolio level, right? Not

It is for the overall portfolio, yes.

Okay. Thank you very much.

Yeah.

Yeah. Thanks for the opportunity.

I have a question on ethanol blending. What is the volume of ethanol which IOCL sourced in this quarter, and any indicative price of what was the cost on a per-liter basis this quarter versus same quarter last year?

See,

as per the Government of India policy, IndianOil has achieved 20% target of ethanol blending, this is at par with the other oil marketing companies. As far as pricing is concerned, we have different type of ethanol, and each product will have its independent pricing.

On a basket basis, it is blended with the MS, and it is sold to the customers.

Okay. Understood.

Also, I have one more question in terms of combined losses of OMCs. I think during the beginning of this quarter, government was saying that the total losses could be likely as high as ₹75,000 crore this quarter, but the reported number of all the three OMCs, including IOCL, are significantly better.

Any specific reason for that? See,

there was many factors which helped us. Excise duty was reduced, the prices were increased in multiple tranches.

When this figure was given, it was in the beginning of April, but subsequently, in the month of June, the prices came down significantly, practically, the impact of June was not that much what we observed in the initial months. You would have seen the con-call, all the oil companies had positive inventory gain.

All these factors put together helped us to mitigate this situation.

Sir. Thanks for the detailed answer.

Thank you. Good afternoon, sir.

I just wanted to follow up on the question from the earlier participant. On the 16th of June, sir, media reports suggested the Oil Secretary saying the OMCs are hitting borrowing limits, sir.

If I look at the changes in debt for yourself and for the other OMCs, there doesn't seem to have been any cash flow stress or any material cash flow stress at all. How do I reconcile the comment from the Oil Secretary on the 16th of June versus what has been reported, sir?

No, see,

if you see, my borrowings have gone up. If you see on 31st March, my borrowings were ₹1,10,000 crore, and on 30th June, it has gone to ₹1,41,000 crore.

There was a significant jump within this three months itself, if you see. Nonetheless, I would say, because we had a very good of financial year 2025-2026, even after this increase, my debt-equity ratio still remains 0.7.

If you see on absolute numbers, my borrowings have gone up significantly by ₹31,000 crore in one quarter itself. Because it is not the first time oil sector companies have seen this type of borrowing levels, we have a banking arrangements to take the money from the banks at a very competitive rates and to manage the situation.

The situation remains very, very strong. In one quarter, if our borrowings goes up by ₹31,000 crore.

No, sir. I was just commenting on the fact that the Secretary said companies are unable to borrow more, and that sounded like a distressed situation, but, like you say, it doesn't look that bad.

No, I have not seen that statement. Probably what he would be saying, see, money is always available in the market.

The issue is at what rate you will get. What he probably would have meant that they are not able to get the money at the same rates what they were getting if we had a comfortable position.

Definitely, if you go to the market with ₹31,000 crore borrowing in one quarter, your cost will go up. Each company will have its own profile.

In our case, having a very strong balance sheet, we still manages, but I will not be wrong to say that my interest cost went up from at what rates we were buying before the war.

Sure, sir. If I may follow up on a second sort of clarification.

Historically, when we've seen that crude falls through a quarter, through this quarter, the opening crude and closing crude is way different, and crude closing is much lower than where it was at open, and historically in such situations, we have seen IOCL report very large inventory losses. In this quarter, at least the accounts don't seem to suggest that a material loss has been booked.

Is that the right understanding, and how do I reconcile that?

No, you have to compare the crude prices on 31st of March and whatever after the AS-2 impact, everything on 30th June 2026. On overall basis, this quarter, if you talk about, on 31st of March, my inventory was somewhere around $87 per barrel, and on 30th June, it is somewhere around 83.

I had a inventory loss on crude this time. As I said in the first question itself, on the finished goods side, I have an inventory gain, because the quotes in the international market of gasoil, gasoline, all the products went up.

There we had an inventory gain, but on crude, we had a marginal inventory loss.

Sorry, sir. You said you marked your crude on June 30th at 83, is it?

Yes.

Bloomberg, it says $70. That's why the confusion, sir.

No,

I don't know about Bloomberg, what they said.

Right. All right.

Thank you very much.

Thank you for the opportunity. My first question is on capex.

Now, with most of your refining expansions getting completed this year, one would have expected maybe a moderation in capex going forward, and one of your OMC peers is also talking about being a little bit more prudent on capex and bringing down their capex intensity, given some of the balance sheet issues. Could you comment on that?

You are still looking at ₹30,000 to ₹40,000 crore capex going forward. Doesn't this sort of situation maybe warrant a rethink, especially given there is still uncertainty on any support from the government?

See,

if you see, IndianOil today has a energy basket share of around 9% to 10%. If you want to continue maintain this energy share in the primary energy basket of the country, and you need to continuously invest, and all the investments are definitely going to bring a positive margins to the company.

See, for the past four to five years, you have seen that we had a extraordinarily good refining margins for the company, although on marketing side, we had a hit. Now, as I said in the beginning, we are focusing on petchem now.

There is a huge demand of petrochemicals in the country, the next cycle of petrochemicals will be done. We don't have as such a targeted capex that we have to spend this much.

Somebody asked me, I said in the past we have done that, so that can be, but everything would be subject to proper returns, proper due diligence. There is no as such targeted given to any one of us.

Everything is evaluated on a profitability side, and then we invest. I would definitely add that going forward, renewables would be one sector where we will have to invest.

We have a target of 18 GW renewable power in next three to four years. We have 100% owned subsidiary company, TerraGreen, where we have putting a lot of efforts to start our renewables, already 4 to 5 GW working is going on at various stages.

Renewables will start going up, and petchem. These are the two sectors which will take my major capex in next three to four years.

Apart from that, we have other capex also, whether it is pipelines, whether it is biogas, whether it is SAF, whether it is green hydrogen, and we are also diversifying into now shipping. There would be many factors where we are also investing into battery swapping, already we have a joint venture company into that.

We have also a very profitable company, fertilizer subsidiary company, a joint venture company giving us good returns. There are many sectors where we are investing in our company.

Thank you, sir. Just to follow up on this, two questions.

One, in terms of India's energy dependence, there has been talk of some focus from the government on maybe investing in strategic reserves, and one of your upstream counterparts is setting up an SPR facility. Is there any such directive from the government to you or the OMCs, say on, I don't know, LPG storage facilities or anything such thing?

See,

I would give you a small just snap shot sort of SPR. See, today, the existing capacity is around 5.

5.33 MMTPA. It is at Visakhapatnam, Mangalore, and Padur in Karnataka, okay?

There's a target to increase it to 11.83. This target is not for IndianOil, it is for general, indicative target for the entire oil and gas sector, seeing the geopolitics.

We are also under discussion to see whether we can also participate in this strategic storage, but as such, there is no target or any straightforward given to us. All these proposals are being evaluated on a commercial considerations, and if we find that it is commercially viable, we will definitely be participating in SPRs as well.

Got it, sir. Just my last question on the refining expansions.

I think someone else also asked this question. Besides the throughput increase, does this also lead to an increase in complexity, and is there any sort of quantification on how much you expect, say, refining margins from these refineries to increase by?

All else being equal, assuming no change in spreads, etc. See, even the

if you see any even today, the distillate yield, fuel and loss, it all depends upon the type of crude you are buying, but we are seeing the more and more new units are coming, our distillate yield is going up, our fuel and loss is coming down, definitely we can expect better returns or better margins going forward. If you see even this quarter, we have one of the best distillate yield, and our fuel and loss is only 8%.

All these efforts are being taken. We have also a sprint target where all the units are have been advised to achieve the quarter quartile one in the in the Solomon study.

Various factors will help the company to increase the gross refining margins, and the new units are also going to produce more value-added products. All these things are going to definitely not increase our throughput, it will also result into better refining margins for the company.

That's great. Thank you so much.

Hi, thank you for the opportunity. Congratulations, sir and team, to weather a difficult quarter.

My question just is mainly on the ATF side. On the opening remarks, you mentioned that there has been some dip in demand in this quarter in terms of ATF is concerned.

Just a couple of questions around that. I want to understand how many airlines or which all airlines did avail the scheme that we had, the release by the government where we were able to supply the fuel at a fixed rate.

Is that facility availed by airlines?

No, see, I understand you are talking about the PSF facility which was announced. That facility, no airlines had gone ahead to use that, because by the time that facility got activated, the prices started coming down.

That way, but again the prices have started going up. We don't know what would be the future.

I can't give any futuristic statements, but as far as we are concerned, we have remained fully engaged with all the airlines to support them, and as far as a international pricing is concerned, we were able to pass on the entire cost to the airlines. On a domestic front, we have had a negotiated pricing, and that is still continuing.

Understood, sir. One last follow-up, sir.

On the website, I can see that the prices for March have been updated for ATF, I'm assuming there would be multiple revisions post that date. Any range of price that you can guide as to in last one month or last quarter where we supplied the ATF?

If at all we can update that on the website, that would also be helpful, sir. See,

we continuously update our websites, and because of this very geopolitical situation, situation is changing so fast that it was not always possible to keep updating and thing, but I can share one thing that domestic airlines are concerned, today, if I talk about, it is around 100 and ₹115 per liter, which we are supplying to the domestic scheduled airlines in the country.

Okay. That is the price fixed within that scheme, right?

No, last month it was reduced. Now again, today is a pricing cycle day, again it has been increased to ₹115 per liter.

Last cycle was ₹110 per liter, before that also it was 115. Depending upon the movement in the international quotes of ATF, we keep on adjusting our selling prices to the scheduled domestic airlines.

International pricing is typically going as per the MOPS pricing.

Market price, yeah. Fair.

Yeah.

Got it, sir. That is from my side.

Thank you. Thanks so much.

Okay.

Hi, sir. Thanks for taking my question.

Two questions from my end, and apologies if you've already answered them because I joined in a bit late. Firstly, on all the refining capex and the petchem expansions that we have done so far, if you could share the expected completion timelines, and in that context, what is the total throughput that we are targeting for FY27 and '28?

That would be my first question. Second question is you highlighted that petrochemicals is where you see a lot of demand coming from.

In that context, sir, what are the key projects that you're contemplating? Key products that you would be targeting, and what is the scale of the petrochemical expansion that we are talking about?

Okay. See, on the refining side, Panipat refinery is being expanded from 15 MMTPA to 25 MMTPA.

This project is roughly going to cost me somewhere around ₹38,000 crore, and the schedule date of completion is December '26. Almost this project is 94% complete as on date.

As far as Gujarat refinery expansion is concerned, from 13.7 MMTPA to 18 MMTPA, the costing is somewhere around ₹19,000 crore, the project is almost 90% complete, and the schedule date of completion we expect is November '26. Barauni refinery, which is being expanded from 6 MMTPA to 9 MMTPA, it is somewhere costing around ₹18,000 crore, it is almost 92% complete, and its schedule date of completion is now December '26.

As far as petrochemicals are concerned, our PX-PTA complex, which is almost 95% complete, is also expected to commission in next one month now. The other plant, this is the polybutadiene rubber plant at Panipat, which is costing me somewhere around ₹3,000 crore, it is also expected to get commissioned by December '26.

If I talk about these five projects, they are going to cost me somewhere around almost approximately ₹90,000 crore, dollar terms may I can say it's almost a $10 billion capex, which is going to be commissioned by end of this calendar year. Going forward, we have many projects, whether it is on LAB, PX-PTA, all these projects will add another 5 kt 5 MMTPA of my petrochemical intensity capacity, and all these projects are somewhere going to cost me ₹1 lakh crore, as I have already shared with the earlier question.

Something has started, some things are going to start, and we expect all these projects to be commissioned by 29-30, March '30 as on date is expected target, maybe here and there five or six months.

Sir. If you could share So no new refining capacity being considered, and and what would be your FY28 throughput target for refining?

See, this year, although our performance is much more than my installed capacity, for 26-27, my throughput is expected to be around 77 MMTPA, and 27-28, it should touch 85, and in 28-29, it should touch 90. Okay.

Okay. Thank you, sir.

Hi, sir. Thanks for the opportunity.

One question on ethanol blending. Are we flexible to reduce the blending percentage say if your crude price falls to say $60?

Because I think according to my numbers, below $65, ethanol will become a drag on your marketing economics, and this is despite no excise duty being charged on ethanol.

I don't want to give any futuristic statements in this con-call, but we are committed to achieve the target of blending given by the government for all the three oil companies put together. This decision is not taken on company-to-company basis of ethanol blending, it is taken together, and whatever targets would be given, today it is 20%, we have achieved 20%, and whatever new targets would be given, we would be able to achieve that very comfortably.

Fair enough, sir. Secondly, on petchem intensity, I think you said definitely go up from 6% odd to 15% over the next five years.

Is there any hurdle rate that we look at before making an investment in petchem? Because due to my understanding, most of these naphtha-based petchem plant may have subpar economics, given the petchem cycle has been very weak over the last two, three years.

Is there any hurdle rate that we are looking at? See,

any investment which is as a part of the capital allocation policy, all investments have to pass the hurdle rate in our system. It is on what basis you take the assumptions of the returns.

See, if you see the refining margins, we started this refining expansions somewhere around four years back, and today, whatever refining expansions have happened or are going to happen are having a extraordinary return. Same is the case with petchem.

Today, we are hopeful that petchem is a very cyclical business, and because the main thing is demand in the country. The demand is huge, or everything is getting imported.

At some scale, one or two good years in petchem cycle always you recover the entire cost from the business. Petchems are being done based on my natural integration with my business.

It is a part of my long-term strategy, and IndianOil being the major company which can make huge investments vis-a-vis other companies, definitely we have an edge in this sector, and we are very hopeful that we will be able to give good returns to our stakeholders as we have given in because of our refining business.

Sir, just one follow-up. All these petchem capacity addition, will these be naphtha-based or you'll be also open to, I think, say ethane-based crackers in the future?

No,

we are very open to any type of input. We are not only dependent upon naphtha-based.

We are open for the gas-based petchem, whether it is naphtha, any type of input we are open, and that will be the long-term strategy for the company also.

Thank you, sir. Very helpful.

Hello, thank you for the follow-up opportunity. Two questions.

The first one is on sourcing, the crude sourcing again. How much are you sourcing now on a long-term basis, and how much is the spot proportion, and what is the pricing on the spot cargoes versus long-term sourcing that you're doing?

If you can, again, Anuj, like you gave the pre-war to now context, if you can do that for this question, it will be great. The second one is any further update on Project SPRINT that you would like to share during the current quarter or anything that has changed because of the war that got prolonged in respect to milestones that you had set for Project SPRINT?

Thank you.

As far as the crude sourcing is concerned, before the war, we were doing almost 50% spot and 50% term. Because of the prevailing geopolitical situation, it keeps on changing.

If you talk about, I can give you the average numbers for the quarter one 26-27, our spot procurement went as high as 84%, because most of the spot was coming from the Middle Eastern region, but so our spot volume jumped from 50% to almost 84%. The situation is very, very, dynamic.

Something changes in the Strait of Hormuz or in the Red Sea, things will change completely. It we keep track of the developments on day-to-day basis and try to optimize our crude sourcing.

Now coming to the second point, what you said was SPRINT target. See, SPRINT has, as I said, SPRINT had a very positive impact on our company.

Last year, we could save almost ₹2,000 crore in the one financial year itself. Now on 1st of Now recently, we have now SPRINT 2, which will give another we are expecting another ₹2,000 to ₹2,500 crore savings over and above what we achieved last year.

SPRINT is not only on cost, it is on efficiency, it is on market share, it is on efficiency improvement, it is on the logistics savings, it is on the opex savings. All put together, we expect that we can whatever we achieved last year of ₹2,000 crore savings, and this we will be able to achieve this year as well.

This is on SPRINT, and they're not only one factor which is supporting us, because we are keeping track of each and every opex, capex, and trying to optimize that.

Right. Just a couple of follow-ups.

I understand that you're now sourcing a lot more spot versus long-term, right? Does it mean that because you're getting spot cargoes from regions other than the Middle East, you would be getting some of these cargoes at a meaningful discount to even long-term ones?

See,

other than Middle East, we are buying on spot basis, the pricing will change on month-to-month basis. One thing is there, I think IndianOil has managed to source the crude at a very, very optimum rates, even at the peak of the hour.

Yes, our crude cost went up, which I have already shared in my con-call, but definitely the first target is to make the crude available. You all know that Russian crude availability also went up because of the many happenings in that side, and we immediately increased our procurement from Russia.

We increased almost up to 50%, 54%, and we also increased our procurement from South America side, also on Venezuela crude we increased. All these factors have helped us to contain the crude cost for the company.

Definitely, if you talk about pre-war and post-war, our crude cost has gone up, and that is if you see, it's a common phenomenon in the entire oil and gas sector in India.

Right. Sure.

My last one is on this new US sanction that has been referred to of Russian and Iranian hydrocarbon, right? The tariffs on that.

What is the communication you've received from the government? Are you still sourcing Russian and Iranian crude, or is that now subject to the waivers that the US needs to give?

See,

that is still not implemented, actually. That is still one of the houses in the US has passed, but I think it is yet to be fully approved in the I don't have the exact names through which it gets approved, but definitely it is still not fully implemented.

We are tracking the developments, whether in US or any other market, and whenever it gets implemented, we will be able to mitigate that also. My colleague has given me a paper.

What's it? US Senate has advanced and passed the bill in the Senate, but it has not yet become law.

It must clear the US House of Representatives and then be signed by the President before it gets implemented. As of now, it is not implemented.

Okay. All right.

Thank you very much, and all the very best.

Thank you all for your time and insightful questions. On behalf of the entire IndianOil team, I appreciate your continued trust, confidence, and support.

We value our engagement and look forward to future interactions and keeping you updated on our progress. Thank you very much once again.

Stay safe, and take care. Thank you.