Indian Oil (IOC) Q3 24/25 earnings summary

Executive summary

• Standalone revenue from operations for Q3FY25 was INR 216,649 crores, with net profit at INR 2,874 crores, a significant improvement from the previous quarter but down year-over-year.

• Consolidated revenue for Q3FY25 was INR 219,522 crores, with net profit at INR 2,780 crores, compared to a net loss in Q3FY24.

• Achieved highest-ever quarterly sales volume of petroleum products at 23.38 MMT.

• Exceptional items of INR 680 crores were recognized in Q3FY25 due to reversal of provisions following favorable court orders on VAT input tax credit.

Financial highlights

• Nine-month PAT stood at INR 5,697 crores, sharply lower than INR 34,071 crores in the same period last year.

• Standalone EBITDA for Q3FY25 improved sharply year-over-year, with operating margin at 1.49% and net profit margin at 1.33%.

• Average Gross Refining Margin (GRM) for April–December 2024 was $3.69/bbl, down from $13.26/bbl in the prior year.

• Inventory losses for Q3 were INR 5,200 crores; nine-month losses were INR 5,500 crores.

• No defaults on loans or debt securities; all proceeds from debenture issues have been utilized as intended.

Outlook and guidance

• Petroleum product demand in India projected to reach 252.9 MMT in FY26, a 4.65% increase.

• Major refinery expansions (Panipat, Gujarat, Barauni) to be commissioned by FY26, with full EBITDA contribution expected by FY28.

• Renewable energy portfolio target of 31 GW by 2030, with a mix of organic, JV, and M&A strategies.

• Revenue recognition for LPG is impacted by a cumulative net negative buffer of INR 14,325 crores, not recognized as income.

• EBITDA positive expected for CGD business in the next financial year.