Indian Oil Corp. Ltd.'s (IOCL) dominant market share, vertical integration, and asset infrastructure underpin the company's robust business position. Nevertheless, its earnings and cash flow are exposed to volatility in the oil refining sector, which tempers its business strengths. We expect IOCL's operating cash flows will be sufficient to fund its growth capital expenditure (capex) over the next 12-24 months, such that it will keep its debt-to-EBITDA ratio below 3.0x during this period. On Oct. 14, 2025, S&P Global Ratings assigned its 'BBB' long-term foreign- and local-currency issuer credit rating to IOCL. The stable outlook reflects the outlook on the sovereign credit rating on India. We believe IOCL has an extremely high likelihood of receiving support from the government of
