Indian Oil Corporation Holds Over a Month's Worth of Crude Stocks Amid West Asia Tensions

Indian Oil Corp Maintains Over a Month Stock of Crude Oil Amid Strait of Hormuz Disruption

State-run Indian Oil Corp (IOCL) has assured that it maintains over a month stock of crude oil despite the disruption of the Strait of Hormuz due to the ongoing West Asia conflict, which has interrupted 50% of India's energy supplies. The company's LPG inventory, however, has seen a decline.

IOCL has consistently maintained a diversified source of crude oil, with all its refineries operating at full capacity since the conflict started. The company has also diversified its spot procurement of LPG from countries such as Indonesia, Nigeria, Angola, and Oman to manage LPG availability across the country.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The disruption of the Strait of Hormuz has affected 50% of India's oil and 90% of LPG supplies from the Gulf region. IOCL's Director Finance, Anuj Jain, acknowledged that LPG availability has been a constraint, but the company has managed to diversify its sources and make a reasonably good quantity of LPG available across the country.

IOCL expects refining margins to stay elevated due to rising geopolitical uncertainties. The company believes that the world will face cycles of high refining margins in the next one or two years due to disruptions in refining and upstream assets.

IOCL's Expansion Plans

The company has charted out a capex plan of Rs 32,700 crore for the current fiscal 2026-27, an increase of Rs 1,299 crore from the previous fiscal. IOCL expects to complete its expansion of the Panipat refinery from 15 MMTPA to 25 MMTPA by December 2026. The Gujarat refinery, which is being expanded from 13.7 MMTPA to 18 MMTPA at a total cost of Rs 19,000 crores, is also expected to be completed in a similar time frame alongside the Barauni refinery, which is being expanded from 6 MMTPA to 9 MMTPA.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Consolidated Net Profit Surges 81%

IOCL on Monday reported a surge of 81% in its consolidated net profit for Q4FY26 at Rs 15,176.08 crore against Rs 8,367.63 crore in the same period of the previous fiscal. The Board has recommended a final dividend of 12.5% for the year 2025-26, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the company.