Indian Oil Corporation Ltd – ₹7.5 Lakh Crore Revenue Giant, Still Earning PSU-Style Pocket Money
1. At a Glance
Indian Oil Corporation (IOC) is India’s petrol pump uncle — everywhere you go, you see it. Market cap ₹1.97 lakh crore, revenues ₹7.56 lakh crore, profits ₹15,967 crore, and still trading at just 12× earnings because PSU tag = permanent discount. It owns 31% of India’s refining capacity, runs 61,000+ outlets, operates one of the world’s biggest pipeline networks, and is now moonlighting in EVs and green hydrogen. Yet, ROE is 6.5% — basically, IOC makes GDP-sized sales but profits like a medium-sized IT services firm.
2. Introduction
Founded in 1959 and now a Maharatna, IOC is India’s largest oil refiner, fuel retailer, and one of the biggest PSU cash cows. It refines crude, sells petrol, diesel, LPG, aviation turbine fuel, petrochemicals, natural gas, explosives, and is even setting up hydrogen plants.
The company’s dominance is scary:
42% market share in petroleum & lubricants.
51% share in LPG distribution.
45% share in aviation fuel stations.
61,000 touch points across the country (more than Domino’s + Starbucks + Barbeque Nation combined).
But being a PSU means it carries baggage: politically dictated fuel pricing, regulated profits, frequent “social obligations,” and occasional refinery fires. Investors buy it for dividends, not for Tesla-style dreams.
3. Business Model – WTF Do They Even Do?
Petroleum Products (94%): Petrol, diesel, LPG, jet fuel. Runs 11 refineries with 81 MMTPA capacity, operating at 105% utilization.
Petrochemicals (3%): 4.4 MMTPA capacity, branded as PROPEL (polymers) and CYCLOPLAST (recyclates). Sales up, revenues down = typical PSU story.
Other Businesses (3%): Natural gas (13% share), upstream E&P (domestic + overseas), explosives (bulk blasting material for mining), and even cryogenic equipment.
Green Bet: 1 GW renewable plan, EV charging at 9,000+ outlets, JV with Panasonic for battery cells, Panipat hydrogen plant by 2027.
In short: IOC is your petrol pump, LPG cylinder, pipeline, and possibly your future EV charger.
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹1,92,341 Cr
₹1,93,845 Cr
₹1,95,270 Cr
-0.8%
-1.5%
PAT
₹6,814 Cr
₹3,723 Cr
₹8,368 Cr
+83%
-18.6%
EPS (₹)
4.83
2.50
5.75
+93%
-16%
Commentary: Profits doubled YoY, but volatility is IOC’s middle name. Earnings swing more than Sensex on Budget Day.
5. Valuation – Fair Value Range Only
P/E Method: EPS ~₹12 × 10–15× → ₹120–180.
P/B Method: BV ₹132 × 0.9–1.3× → ₹120–170.
EV/EBITDA: EBITDA ~₹45,000 Cr × 6–8× → ₹110–150.
🎯 Fair Value Range: ₹120–180. (Current CMP ₹140 sits right in the sweet spot.)
Disclaimer: For education only. Petrol pump coupons not accepted as investment advice.
