IOCL, BPCL, HPCL Breakdown: How Profit Was Fully Used Up Over 5 Years | OMC Dividend Shock | ET Now

Ajouté : 2026-05-30

[00:00:00]OMCs. And within that OMC pack, of course, uh largely the moves have uh been due to the moves with regard to crude and and the fact that uh the price of the pump have changed over the last week or so. And uh uh given the under-recoveries, uh you'll likely see a very different FY27 versus FY26 both in terms of uh dividend as well as capex intensity and the like. Ashish is here to break down those numbers for us.

[00:00:30]>> At a time when global crude oil prices are surging and oil marketing companies, in fact, are going ahead and hiking prices in the petrol pumps in order to compensate for their under-recoveries, questions are being raised as to where profitability was used over the last few years when crude oil prices were on the lower side. So, we do the math for you and we try to break down where the profitability was used for by these oil marketing companies. So, we'll let's put the spotlight on each of the three oil marketing companies, HPCL, BPCL, and IOCL. First, let's talk about HPCL. Now, in FY22, that's when crude oil prices were on the lower side, company earned profit of about 6,400 crore, out of which 3,222 crore was given out as dividend to shareholders, which means 50% of the profitability was actually given out to their shareholders as dividend. Now, remember at a time when profit was just about 6,400 crore, company incurred a capex of about 16,800 crore. So, clearly, companies were not earning profit, but they they were giving higher dividend and higher capex was being incurred, because of which most of the profit was actually utilized. Now, shifting focus to FY23, then, the same is applicable. In fact, in this year, company incurred a loss of about 9,000 crore. FY24, out of the 15,000 crore profitability, dividend payouts stood at about 14.5% and 14,300 crore was actually used for capex. So, is the case for FY25 and FY26 as well. The companies have given hefty dividend in the range of about 19 to 30% over the last few years. And most importantly, these companies have incurred hefty capex over the last few years, because of which most of the profitability and most of the cash flow that they earned at the time when crude oil prices were lower, but retail fuel prices were higher was being utilized for. Shifting focus to our two other companies then, and the trend largely continues to remain same for all oil marketing companies. We'll talk about BPCL then. In FY22, the profit stood at about 11,400 crore, but the company paid dividend of about 15,000 crore in excess of what the company actually earned. And apart from that, the company also incurred capex of about 11,900 crore.

[00:02:44]So, is the case for FY23, 24, 25, and 26 as well, where 40% of their profitability was given back to shareholders as dividend, and the company incurred capex of about 20,400 crore. Shifting focus to IOCL then, and the trend, as I mentioned, largely remains same.

[00:03:02]Profitability in FY22 at about 24,000 crore. 45% of this was given to shareholders as dividend, and the company incurred more capex as compared to the profitability at about 26,000 crore. So, is the case for FY23, 24, 25, and shifting focus to FY26 then. Out of 36 crore profit that the company earned, about 37% was given back to shareholders as dividend, and the company incurred a total capex of about 32,000 crore. So, over the last 5 years, when crude oil prices were on the lower side, but petrol and diesel prices were proportionately higher, these companies were paying back dividend to their shareholders, and they were also incurring hefty capex, because of which all of the profitability has effectively been utilized.

[00:03:50]>> Okay. Thank you so much for that, Ashisha. That kind of gives us a very good lens into what's playing [music] out. What we'll do is take a very short break, come back with more. Stay with us here on ET.