Mumbai: State-run oil refining and marketing companies are pressing ahead with multi-billion-dollar expansion and energy transition plans despite near-term pressure from volatile crude prices and supply disruptions caused by the West Asia conflict.
These companies reported robust FY25 earnings aided by strong marketing growth, record refinery throughput, and market share gains in retail fuels.
Indian Oil Corp (IOCL) has earmarked a capital expenditure of ₹32,700 crore for FY27, after spending ₹31,401 crore in FY26 across refining, pipelines, petrochemicals, gas, and renewable energy businesses, the company said during its post-results earnings call.
IOCL, the country's largest refiner, said its ongoing refinery and petrochemical expansion projects at Panipat, Barauni, Gujarat, and Paradip were in advanced stages and targeted for completion this fiscal year.
Panipat refinery's expansion from 15 mtpa to 25 mtpa is expected to be completed by December, while expansion of the Gujarat refinery from 13.7 mtpa to 18 mtpa, and at Barauni from 6 mtpa to 9 mtpa are expected by November-December 2026 and August 2026, respectively.
IOCL said it has already spent around ₹27,000 crore on the Panipat project against an approved cost of ₹38,000 crore, ₹13,500 crore on the Gujarat refinery against an approved cost of ₹19,000 crore, and ₹13,000 crore on the Barauni expansion against a planned outlay of ₹18,000 crore.
Beyond refining, IOCL is also accelerating investments in clean energy and hydrogen infrastructure. The company aims to build 31 GW of renewable energy capacity by 2030 through its green energy arm, Terra Clean Ltd, while a 10 KTA green hydrogen plant at Panipat refinery is scheduled for completion by December 2027.
The IOCL management said about ₹5,000 crore of the FY27 capex would be directed toward renewable energy initiatives.
Meanwhile, BPCL plans to spend ₹25,000 crore on capex this fiscal. Of this, ₹11,000 crore will go towards refining, ₹10,000 crore in marketing, ₹2,250 crore in exploration and production, and ₹1,700 crore in city gas distribution.
HPCL didn't disclose its capex plans, though telling analysts that its projected capex for FY27 is slightly lower than last year. For FY26, HPCL's capex was around ₹13,000-14,000 crore.
These companies reported robust FY25 earnings aided by strong marketing growth, record refinery throughput, and market share gains in retail fuels.
Indian Oil Corp (IOCL) has earmarked a capital expenditure of ₹32,700 crore for FY27, after spending ₹31,401 crore in FY26 across refining, pipelines, petrochemicals, gas, and renewable energy businesses, the company said during its post-results earnings call.
IOCL, the country's largest refiner, said its ongoing refinery and petrochemical expansion projects at Panipat, Barauni, Gujarat, and Paradip were in advanced stages and targeted for completion this fiscal year.
Panipat refinery's expansion from 15 mtpa to 25 mtpa is expected to be completed by December, while expansion of the Gujarat refinery from 13.7 mtpa to 18 mtpa, and at Barauni from 6 mtpa to 9 mtpa are expected by November-December 2026 and August 2026, respectively.
IOCL said it has already spent around ₹27,000 crore on the Panipat project against an approved cost of ₹38,000 crore, ₹13,500 crore on the Gujarat refinery against an approved cost of ₹19,000 crore, and ₹13,000 crore on the Barauni expansion against a planned outlay of ₹18,000 crore.
Beyond refining, IOCL is also accelerating investments in clean energy and hydrogen infrastructure. The company aims to build 31 GW of renewable energy capacity by 2030 through its green energy arm, Terra Clean Ltd, while a 10 KTA green hydrogen plant at Panipat refinery is scheduled for completion by December 2027.
The IOCL management said about ₹5,000 crore of the FY27 capex would be directed toward renewable energy initiatives.
Meanwhile, BPCL plans to spend ₹25,000 crore on capex this fiscal. Of this, ₹11,000 crore will go towards refining, ₹10,000 crore in marketing, ₹2,250 crore in exploration and production, and ₹1,700 crore in city gas distribution.
HPCL didn't disclose its capex plans, though telling analysts that its projected capex for FY27 is slightly lower than last year. For FY26, HPCL's capex was around ₹13,000-14,000 crore.