IOC plans ₹32,700 crore FY27 capex; outlines major refinery expansion targets
Sarthak Kumar
Indian Oil Corporation shares traded over 3% higher on Tuesday after the state-run oil marketing major outlined its FY27 capital expenditure guidance and detailed expansion plans for key refinery projects across India following its strong Q4FY26 earnings.
The company said it spent ₹32,405 crore on capital expenditure during FY26 and has set a capex target of ₹32,700 crore for FY27, indicating continued aggressive investments in refining, pipelines and energy infrastructure.
As part of its expansion roadmap, IOC announced that the Panipat refinery capacity will be expanded to 25 MMTPA from 15 MMTPA by December 2026. The Gujarat refinery capacity is expected to rise to 18 MMTPA from 13.7 MMTPA by November 2026, while the Barauni refinery expansion to 9 MMTPA from 6 MMTPA is targeted for completion by August 2026.
The guidance comes after IOC reported a strong set of Q4FY26 numbers. The company posted a net profit of ₹11,377.51 crore compared to ₹7,264.85 crore in the year-ago quarter. Revenue from operations rose to ₹2,32,855.33 crore from ₹2,17,725.44 crore YoY.
EBITDA surged to ₹20,715.56 crore against ₹13,572.46 crore last year, while EBITDA margin improved sharply to 8.9% from 6.2% YoY. Profit before tax stood at ₹15,322.37 crore compared to ₹8,786.72 crore in the corresponding quarter last year.
Operational performance also remained robust during the quarter. Product sales increased to 26.065 MMT from 24.601 MMT YoY, refinery throughput rose to 19.732 MMT from 18.548 MMT, while pipelines throughput improved to 27.656 MMT from 25.777 MMT in the previous year period.
The refinery expansion projects are expected to strengthen IOC’s downstream capacity and improve long-term fuel supply capabilities amid rising domestic energy demand.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.