IOCL: Sprint ahead, Strengthening the Core, Powering Energy Transition

Chairman’s Address

Esteemed Members,

Welcome to the 66th Annual General Meeting of your Company.

This annual meeting is not just a statutory occasion but a celebration of our shared journey — a journey built on trust, resilience, and a steadfast commitment to energise India’s progress.

I extend my heartfelt gratitude to each one of you for your continued confidence in the Company and for staying invested in our vision.

Business Outcomes

The year gone by reminded us that energy is never just about markets and molecules; it is shaped by the pulse of geopolitics.

The Russia–Ukraine conflict, now in its third year, continued to cast a shadow on global stability. New fault lines in the Middle East, disruptions in the Red Sea, and heightened tensions around the Strait of Hormuz unsettled vital energy corridors. Towards the close of the year, tariff hikes in the United States added fresh headwinds, shaking investor confidence.

Against this backdrop of volatility and uncertainty, your Company delivered a resilient performance during 2024–25.

• Sales volumes crossed the historic 100 million metric tonne mark, supported by beyond-capacity processing across 10 refineries.

• Our 20,000 km pipeline network ensured seamless movement of hydrocarbons, underscoring the strength of our integrated model.

• With over 40,000 fuel stations energising 3.2 crore customers every day, and Indane LPG trusted in 15 crore kitchens, IndianOil remains at the heart of India’s energy ecosystem.

• Alongside refining and marketing, we maintained a strong presence in petrochemicals, natural gas, and E&P, reinforcing our diversified energy footprint.

On the financial front:

• Revenue from Operations stood at ₹8.45 lakh crore, keeping us among India’s top three corporates.

• Net Profit was ₹12,962 crore — the highest among OMC peers, though moderated from last year due to weaker refining margins, LPG under-recoveries, and exchange losses.

• In Q1 FY 2025–26, your Company delivered its highest-ever quarterly sales and a consolidated net profit of ₹6,808 crore — nearly double that of the same period last year.

SPRINT: Powering Transformation

Resilience alone is not enough. To sustain leadership, we must evolve with speed and agility. With this vision, we launched Project SPRINT this fiscal.

SPRINT sharpens competitiveness across six focus areas:

• Strengthening core businesses

• Optimising costs

• Reinforcing customer-centricity

• Accelerating innovation and digitalisation

• Nurturing talent

• Advancing the energy transition

At its heart lies the 3Cs (Core, Cost, Customer) and 3Ts (Technology, Talent, Transition).

The impact is already visible:

• One refinery is on track to become the first PSU refinery in India to achieve a Quartile-1 ranking in the Solomon Benchmarking Index.

• Nearly half of new PSU OMC retail outlets since April 2025 have been IndianOil’s.

• Non-fuel revenues grew 49% year-on-year in the first four months of this fiscal.

• Cost optimisation initiatives are delivering higher efficiency and sustained profitability.

Reinforcing the Legacy

As India prepares to become the largest driver of global oil demand by 2035, your Company is scaling:

• Refining capacity from 80.75 MMTPA to 98.4 MMTPA by 2028.

• Pipeline network beyond 22,000 km, with 21 projects underway.

• Petrochemicals capacity from 4.3 MMTPA to over 13 MMTPA by 2030, with a sharp focus on specialty chemicals.

• We also advanced in upstream with 25 assets across India and overseas, including new hydrocarbon discoveries in Abu Dhabi, resumption in Libya, and acquisition of Mercator Petroleum in the Cambay Basin.

India’s Energy Lifeline

From fuel stations, LPG, and CNG to aviation, mobility, lubricants, and natural gas, IndianOil continues to be India’s most trusted energy partner.

Highlights of 2024–25 include:

• 14,000 EV chargers and 865 battery-swapping stations, advancing clean mobility.

• 68 Way Side Amenities and 138 Apna Ghar facilities for highway users and truckers.

• LPG leadership strengthened with 45% market share and the launch of Chhotu Master (compact 5 kg LPG cylinder + cooktop).

• Servo lubricants expanded to 45 countries, including the launch of Servo Futura eV for electric vehicles.

• Natural gas sales surged 20% to 7.9 MMTPA; CGD JVs now cover 21% of India’s population.

Pioneering Innovation

• Our R&D Centre is driving breakthroughs in green hydrogen, SAF, 2G ethanol, fuel cells, and carbon capture.

• eCO₂Sorb, our patented enzyme-based carbon capture solution, is at pilot scale.

• 42 start-ups incubated under our Start-up Scheme have already generated 86 IPRs and 4 commercialized patents.

• The upcoming New R&D Campus at Faridabad will lead frontier research in alternative energy and advanced sciences.

Transition to a Future-Ready Portfolio

We are transitioning into a diversified, integrated energy company anchored on three pillars:

• Green Hydrogen – 10,000 TPA plant at Panipat (India’s largest).

• Sustainable Aviation Fuel – India’s first ISCC-CORSIA certified SAF project; 30 KTPA from used cooking oil at Panipat.

• Renewables – Clean energy portfolio scaling from 1 GW today to 18 GW in three years.

• This green shift is supported by strong sustainability actions — 7 lakh trees planted, 89% wastewater reuse, GreenCo certifications, and a Net Zero by 2046 roadmap requiring ₹2.5 lakh crore investment.

Investments and Asset Optimisation

• In 2024–25, IndianOil invested ₹40,000 crore, accounting for over one-fourth of MoPNG PSU CAPEX.

• Over 160 projects worth ₹2.6 lakh crore are under execution.

• Committed ₹1.66 lakh crore over five years with sharp focus on petrochemicals, natural gas, and renewables.

• New revenue streams in bitumen, bunkering, LNG, cryogenics, and data transmission services are being seeded.

• IOC Global Capital Management (IGCMIL) at GIFT City executed USD 500+ million in transactions, evolving into a Global Treasury Centre.

Driving Social Impact

• In 2024–25, IndianOil spent ₹583 crore on CSR, touching 1.36 crore beneficiaries.

• Healthcare focus: TB elimination, cancer care, sickle cell anaemia, dialysis centres.

• Skilling & empowerment: Women, Divyangjan, and children rehabilitated through Badhte Kadam.

• Growth for us is meaningful only when it uplifts lives.

Building Sports Champions

• IndianOil athletes won 239 medals in 2024–25, including 85 global medals and India’s historic 29-medal Paralympics haul.

• Our DivyaShakti initiative supports 100 para-athletes, half of them women. We remain committed to women’s hockey, para federations, and India’s “Road to LA 2028.”

Governance & Closing

Your Company upholds the highest standards of corporate governance, transparency, and preventive vigilance.

At the core of our journey lies one promise — energising lives with reliability, responsibility, and foresight.

I express my sincere gratitude to the Government of India, the Ministry of Petroleum & Natural Gas, regulators, banks, employees, stakeholders, and above all, our customers for their enduring trust and support.

With your continued encouragement, IndianOil will keep energising lives, unlocking new frontiers, and advancing our shared aspiration of a Viksit Bharat.

Thank You.

Jai Hind!