Indian Oil Corp Projects ₹34,000 Crore Capex for FY25

State-run Indian Oil Corporation (IoCL) is expected to incur a capital expenditure (capex) of ₹34,000 crore in the current financial year ending March 2025, with a further increase to around ₹37,500 crore in FY26, according to Fitch Ratings.

The country’s largest oil marketing company (OMC) is also projected to expand its refining capacity to over 70 million tonnes by March 2026.

“We forecast capex of ₹34,000 crore in FY25, above IoCL’s target of ₹30,900-37,500 crore thereafter to account for higher energy-transition spending. We expect capex to be allocated across various segments, including refining, marketing, pipeline, petrochemicals, alternative energy, and city gas distribution,” the ratings agency reported.

Fitch also anticipates IoCL’s refining capacity to reach 87.9 million tonnes (mt) by the end of FY26, up from the current 70.3 mt, as IoCL expands its Barauni, Koyali, and Panipat refineries. Additionally, petrochemical capacity is expected to increase to 7 mt by FY27, from the current 4.4 mt.

“We expect refining capex intensity to decline over the medium term, while energy-transition capex rises. The government has announced ₹15,000 crore of capital support to the three state-owned OMCs in FY25, which could bolster capex, but we do not include this in our base case,” Fitch added.

HBL