1. Opening Hook
When the world fretted about OPEC cuts and climate targets, Indian Oil calmly lit its Diwali lamps with a ₹7,610 crore PAT — up 34% QoQ. While others cried “rainfall impact,” IOCL called it a “minor drizzle.” The nation’s refiner-in-chief is now juggling crude discounts, hydrogen dreams, and government handouts like an overworked barista pouring energy lattes.But here’s the twist — from $10.66 GRMs to hydrogen buses and SAF deals, IOCL’s call was half refinery talk, half sci-fi movie. Keep reading — because when India’s biggest energy player says it’s “green,” it might just mean money green.
2. At a Glance
- Revenue ₹2,02,992 crore (↓7%)– Blame monsoon, not margins.
- PAT ₹7,610 crore (↑34% QoQ)– Rain or shine, profits pumped up.
- GRM $10.66/bbl (↑54%)– Diesel cracks did the heavy lifting.
- Throughput 17.6 MMT (↓6%)– Gujarat refinery snoozed, others caffeinated.
- Borrowings ₹1.28 lakh crore (↑6,700 crore)– Working capital said “hello.”
- CAPEX ₹15,890 crore (H1)– Sprinting hard, not jogging.
- Stock steady– Investors too busy counting LPG installments to care.
3. Management’s Key Commentary
“Profit after tax stood at ₹7,610 crores, higher than ₹5,689 crores last quarter.”(Translation: Monsoon couldn’t drown our margins — we floated on diesel.😏)
“IOC’s share of LPG compensation is ₹14,486 crores, disbursed over 12 months.”(Translation: Government EMI plan activated — one crore per month keeps stress away.)
“GRM at $10.66, normalized at $8.91 — diesel cracks saved the day.”(Translation: Diesel is our hero, petrol’s just along for the ride.)
“Refinery utilization at 99.5%, pipelines at 67% due to Gujarat shutdown.”(Translation: Gujarat took a nap, others ran a marathon.)
“We achieved 19.85% ethanol blending; target 31 GW renewables by 2030.”(Translation: Old oil, new karma — burn less, brag more.)
“Hydrogen buses launched, SAF deal with Air India signed.”(Translation: Now boarding — Flight IOCL 2030, powered by used cooking oil.✈️)
“Borrowings rose due to forex and working capital
changes; D/E at 0.68.”(Translation: Debt’s in check — unlike global crude prices.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q1 FY26 | YoY/Comment |
|---|---|---|---|
| Revenue (₹ Cr) | 2,02,992 | 2,18,608 | ↓7%; Monsoon blues |
| PAT (₹ Cr) | 7,610 | 5,689 | ↑34%; Diesel delight |
| GRM ($/bbl) | 10.66 | 6.91 | Crack-ing performance |
| Throughput (MMT) | 17.6 | 18.7 | ↓6%; Gujarat shutdown |
| Pipeline throughput (MMT) | 24.1 | 26.3 | ↓8%; maintenance hit |
| Sales (MMT) | 24.26 | 26.33 | Rain spoiled road trips |
| LPG loss/cylinder | ₹100 → ₹40 | Compensation cushion | |
| CAPEX (₹ Cr, H1) | 15,890 | — | Halfway sprint done |
Diesel saved the quarter; monsoon and petrochemicals dragged the vibes.
5. Analyst Questions
ICICI Securities:LPG comp booked as revenue?CFO:“Yes, monthly installments.”(Translation: Government pays in EMIs, not miracles.)
Smartsun Capital:“Market doesn’t value you right.”CFO:“We agree, but good vibes coming.”(Translation: Please re-rate us already.)
Ambit Capital:“Project Sprint updates?”CFO:“Target 20% cost cut, wait till Q3.”(Translation: Savings under construction.)
HSBC:“GRMs sustainable?”CFO:“Mostly diesel + freight optimization.”(Translation: Diesel’s still daddy.)
CLSA:“Why not accrue full LPG comp upfront?”CFO:“Because ministry said monthly.”(Translation: Accounting ruled by babus, not IFRS.)
6. Guidance &
