State-owned downstream major Indian Oil (IOCL) on Monday said it continues to purchase Russian crude oil in the current quarter, depending upon the economics. However, the company noted that discounts on Russian barrels have narrowed significantly to just $1.5–$2 per barrel.
The comments come at a time when India faces the risk of a 50% tariff from the US. Washington has already announced an additional 25% tariff on the country for continuing to buy Russian oil.
In the first quarter of FY26, Russian oil accounted for 24% of IOCL’s total imports, up from 22% in FY25.
“Last year in FY25, we almost got 22% of Russian crude. During Q1FY26, it was almost 24%. This quarter we are continuing to buy Russian crude depending upon the economics,” the company said during an analyst call.
Refinery expansion and capex plan
IOCL has lined up a capex plan of ₹34,000 crore for FY26, of which ₹14,000–15,000 crore will be directed toward refinery operations, and ₹15,000–16,000 crore toward petrochemicals, marketing, pipelines, and city gas distribution.
The company is also expanding refining capacity through multiple projects. Its Panipat refinery expansion—from 15 million metric tonne per annum (MMTPA) to 25 MMTPA—is expected to be commissioned by year-end, along with the expansion of the Koyali refinery in Gujarat from 13.7 MMTPA to 18 MMTPA.
Meanwhile, IOCL’s Barauni refinery expansion in Bihar, which will raise capacity from 6 MMTPA to 9 MMTPA, is slated for completion by August 2026. The Board recently approved a revision in the project cost from ₹13,779 crore to ₹16,724 crore, citing higher costs of plant and machinery.
“As of now our Panipat and Gujarat refinery are scheduled to be commissioned at the end of this year and the Barauni refinery is expected to come by August 2026. The expansion will come in phases,” the company said.
Diversification and financial performance
Expanding its retail footprint, IOCL plans to add over 4,000 outlets in FY26, taking its network to 48,000 by the end of FY27.
The company is also diversifying aggressively into renewable energy, green hydrogen, and electric mobility. It is targeting 30 gigawatts (GW) of renewable energy capacity by 2030 and aims to increase its share in the national energy basket from 9% currently to 12.5% by 2050, in line with rising energy demand.
On the financial front, IOCL reported an 83% surge in consolidated net profit for Q1FY26 at ₹6,808.12 crore, compared to ₹3,722.63 crore in the year-ago period. Sequentially, however, net profit fell 18.6% from ₹8,367.63 crore in Q4FY25.