Indian Oil plans to make an equity investment of ₹1,086 crore to add 4.3 GW of green energy capacity.
The company’s board approved a proposed equity investment of ₹1,086 crore in subsidiary Terra Clean Ltd. for setting up 4.3 GW of renewable energy capacity, Indian Oil said in a public filing on Wednesday. This is on top of the already public plan of an equity investment of ₹1,304 crore in Terra Clean for setting up 1 GW of renewable capacity.
Indian Oil Corp reported a profit of ₹7,265 crore in the fourth quarter, a 50 per cent rise from a year earlier, on inventory gains and expanded marketing margins.
Its revenue from operations stood at ₹2,17,725 crore in the January–March quarter, compared to ₹2,19,876 crore in the same period last year. The gross refining margin (GRM) for the quarter was $7.85 per barrel, lower than $8.39 a year earlier. The company made an inventory gain during the quarter, compared to a loss in the year-earlier period, Indian Oil Chairman Arvinder Singh Sahney said, without elaborating.
Indian Oil shares closed up 1.6 per cent at ₹137.90 apiece on Wednesday, when the BSE Sensex ended almost flat.
The company reported a profit of ₹12,962 crore for the year 2024–25, 67 per cent lower than ₹39,619 crore in the previous year. The GRM for 2024–25 dropped to $4.8 per barrel from $12.05 in the previous year. Indian Oil declared a dividend of ₹3 per share.
On a query about supply contingencies in the context of the volatile situation in Kashmir, Sahney said, “We are always in a state of readiness.”
Indian Oil has also signed a five-year deal with global trader Trafigura for buying 2.5 million tonnes of LNG, roughly valued at $1.3–$1.4 billion, Sahney said. The supplies, linked to Henry Hub prices, will comprise 27 cargoes and start in the second half of this fiscal year. The supplies will help meet the growing domestic demand for gas, he said. There was “no mandate” from the government to source oil or gas from any “specific geography,” he said in response to a question on increasing energy sourcing from the US.
Sahney said the company wasn’t currently engaged in talks with Russian companies for sourcing oil under a term deal.
Sahney expects domestic demand for petrol to remain steady, and that of diesel and jet fuel to improve this year. Last year, India’s petrol sales grew about 7 per cent , diesel 2 per cent , and jet fuel 9 per cent .
For the first time in its history, Indian Oil’s sales volume exceeded 100 million metric tonnes in 2024–25.
