Indian Oil Likely to Spend ₹40,000 Crore on Capex During FY27–29.

State-run Indian Oil Corporation Ltd (IoCL) is expected to maintain a high level of capital expenditure in the coming years, with annual spending estimated at ₹33,000 crore in FY26 and rising to around ₹40,000 crore during FY27 to FY29, according to S&P Global Ratings.

The bulk of this investment will go towards expanding refinery capacity, with about ₹35,000 crore allocated for this purpose between FY26 and FY28. Following this phase, the company is projected to shift focus to its petrochemicals segment, with an estimated investment of ₹68,500 crore over the three years that follow.

S&P noted that despite the aggressive spending plans, Indian Oil’s operating cash flows are expected to adequately cover its growth capex over the next 12–24 months. The ratings agency also expects the company to maintain a healthy financial position, keeping its debt-to-EBITDA ratio below 3.0x during this period.