By Newscript News Network
August 22, 2025
IOC is attempting to square the transition circle: build out green molecules while keeping the downstream engine humming. The company has fixed the levelised cost for India’s largest electrolytic hydrogen facility—10,000 tonnes per annum at Panipat—at ₹397/kg, targeting completion by December 2027 with Larsen & Toubro executing EPC. In Q1 FY26, profit nearly doubled to ₹5,689 crore on revenue of ₹2.19 trillion (+1.2%), even as inventory movements created noise. With Russian discounts narrowing, IOC diversified barrels, securing roughly 7 million from the US, Canada and Abu Dhabi, while locking in logistics to sustain utilisation.
Growth capex remains expansive: a ₹21,000 crore programme to expand Barauni from 6 to 9 MMTPA and roll out city gas across 27 cities, plus 4.3 GW of renewables via Terra Clean to backstop green molecule ambitions. The company’s moat—distribution heft, refinery scale and brand equity—gives it operating leverage through the cycle.
Market view & expert recommendations: Trading near ₹141.44, IOC enjoys majority Buy ratings (about 65% of 26 analysts). Experts see a core PSU holding anchored in retail reach and first‑mover advantage in hydrogen; risks include marketing‑margin resets, Panipat execution and crude supply dynamics. The base‑case stance is positive with execution watch: track EPC awards and electrolyser sourcing for Panipat, monitor city‑gas ramp and keep an eye on the renewables schedule under Terra Clean.