Indian Oil Corporation (IOC), India’s largest oil refining and marketing company, has announced an ambitious expansion plan involving a capital expenditure (CAPEX) of ₹33,494 crore for FY25–26. The plan aims to accelerate growth across the company’s refinery and petrochemical segments, reinforcing its long-term strategy to strengthen domestic energy infrastructure and enhance value creation.
Refinery Expansion Outlook
IOC has outlined a structured plan to scale up utilization across its newly expanded refinery projects. The company expects:
- 60% utilization in Year 1, and
- Over 80% utilization in Year 2.
These expansions are primarily brownfield projects, which allow IOC to leverage existing assets and achieve quicker ramp-up and operational efficiency.
Petrochemical Project Targets
For its petrochemical ventures, IOC has adopted a phased ramp-up strategy with a target internal rate of return (IRR) of 11%.
- Year 1: 60% capacity utilization
- Year 2: 80% capacity utilization
- Year 3: 100% (full capacity utilization)
This progressive approach aligns with the company’s broader objective of boosting its presence in the high-margin petrochemical sector.
Capital Expenditure Framework
IOC’s CAPEX for FY25–26 is pegged at ₹33,494 crore, while its annual CAPEX, including investments in joint ventures and subsidiaries, is expected to range between ₹30,000 crore and ₹40,000 crore. This sustained investment underscores IOC’s commitment to capacity expansion, modernization, and energy transition initiatives.
Investor Communication Update
In a recent stock exchange filing, IOC clarified a date correction regarding its upcoming analyst and investor meeting. The correct date for the session is October 28, 2025, replacing the previously mentioned August 28, 2025 due to a typographical error.
Strategic Outlook
Through these expansion initiatives, IOC aims to strengthen its leadership position in India’s refining and petrochemical markets while contributing to the nation’s broader goals of energy security and self-reliance. The company’s sustained focus on operational efficiency and project scalability positions it well for future growth in an evolving global energy landscape.
Summary:
Indian Oil Corporation (IOC) has announced an ambitious ₹33,494 crore CAPEX plan for FY25–26 to support refinery and petrochemical expansion. The company expects new refinery units to reach over 80% utilization by Year 2, while petrochemical projects will scale to full capacity by Year 3 with a targeted IRR of 11%. Annual CAPEX, including JVs, is projected between ₹30,000–₹40,000 crore. IOC also clarified that its analyst meet will be held on October 28, 2025.
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