Indian Oil Corporation Ltd (IOCL) is set to maintain robust capital expenditure in the coming years. According to S&P Global Ratings, the company is expected to spend around ₹33,000 crore in FY26, increasing to approximately ₹40,000 crore annually during FY27 to FY29.
Focus on Refinery Expansion
The majority of this investment, roughly ₹35,000 crore between FY26 and FY28, will be directed toward expanding refinery capacity. This phase will enhance IoCL’s production capabilities and strengthen its position in the domestic and global energy markets.
Shift Toward Petrochemicals
Following the refinery expansion, IOCL is projected to shift its investment focus to the petrochemicals segment, planning a substantial outlay of ₹68,500 crore over the subsequent three years. This strategic move aims to diversify revenue streams and capitalize on growing demand in the petrochemical sector.
Strong Cash Flow and Financial Health
Despite aggressive capex plans, S&P expects Indian Oil’s operating cash flows to sufficiently cover growth expenditures over the next 12–24 months. The ratings agency also anticipates that the company will maintain a healthy financial position, keeping its debt-to-EBITDA ratio below 3.0x during this period.