A. i) Freehold Land includes H1.61 crore (2025: H1.61 crore) lying vacant due to title disputes/ litigation.

ii) National Highways Authority of India (NHAI) has acquired certain freehold land belonging to the Company at Mathura and Agra region as part of NH2 widening project. Out of the total land under acquisition, compensation in respect of a portion has been received and accounted for on provisional basis. In respect of the balance land admeasuring approximately 48 acres, where the quantity of the land and value of compensation is yet to be finalised and agreed, the Company continues to carry such land under "Freehold Land" in the books of account, pending final determination of compensation.

iii) Freehold Land of 490 acres at Guwahati Refinery includes land parcel of approx. 32.39 acres (Costing H0.05 crore) on which public roads, drains etc. have been constructed by PWD, Government of Assam.

iv) Freehold Land includes H41.75 Crore of compensation paid in respect of land at Panipat Refinery as per District and High court orders of earlier dates, which was later quashed by subsequent High Court order dated 18.12.2019. Since, the process of recovery, for compensation already paid, has been stayed by Hon'ble Supreme Court vide order dated 21.09.2020, necessary adjustment shall be made in the cost of the land upon actual recovery, if any.

B. i) Buildings include H0.01 crore (2025: H0.01 crore) towards 1605 (2025: 1605) nos. of shares in Co-operative Housing Societies

towards membership of such societies for purchase of flats.

ii) Includes Roads, Bridges etc. (i.e. Assets other than Building) of Gross block amounting to H8643.38 crore (2025: H6207.60 crore) and net block amounting to H4224.52 crore (2025: H3420.80 crore).

C. Depreciation and amortisation for the year includes H60.40 crore (2025: H96.42 crore) relating to construction period expenses shown in 'Note - 2.2'

D. Land and Buildings (Including ROU Asset) includes Gross Carrying Value of H964.33 crore (2025: H508.61 crore) in respect of which Title/ Lease Deeds are pending for execution or renewal. (Refer Note - 48)

E. For further details regarding ROU Assets, refer 'Note - 36'.

F. In accordance with the requirements prescribed under Schedule II to Companies Act, 2013, the Company has adopted useful lives as prescribed in that schedule except in some cases as per point no. 2.4.1 of material accounting policies (Note-1).

A. The Ministry of Petroleum and Natural Gas (MoPNG), vide letter dated 30.04.2020 had conveyed to Oil Marketing Companies (OMCs) that where Market Determined Price (MDP) of LPG cylinders is less than its Effective Cost to Customer (ECC), the OMCs will retain the difference in a separate buffer account for future adjustment. However, as on 31^st March 2026, the Company had a cumulative net negative buffer of H 23,101.56 crores (2025 : H 19,926.09 crore) as the retail selling price was less than MDP and accordingly, revenue to this extent has not been recognised.

B. MoPNG, vide letters dated 3^rd and 24^th October 2025, has conveyed Government's approval for compensation of H 14,486 crores to the Company, towards under-recoveries incurred on sale of domestic LPG up to 31.03.2025 and likely to be incurred up to 31.03.2026 and it will be disbursed in 12 equal monthly instalments, the accrual of which shall only be on monthly basis starting from November 2025 and thereafter will be disbursed accordingly. In accordance with the letters, instalment for the period from November-25 to March-26 aggregating to H 6,035.85 crores have been recognised as Revenue from Operations in the books of account and the cumulative net negative buffer mentioned in (A) above has been reduced to that extent.

Frequency

The Proved and Proved & Developed reserves mentioned above are the provisional numbers based on the estimate provided by the operator. For the purpose of estimation of Proved and Proved & Developed reserves, Deterministic method has been used by the operator. The annual revision of Reserve Estimates is based on the yearly exploratory and development activities and results thereof.

© NOTE - 35: EMPLOYEE BENEFITS

Disclosures in compliance with Ind-AS 19 on "Employee Benefits" is as under:

A. Defined Contribution Plans- General Description Employee Pension Scheme (EPS-95)

During the year, the company has recognised H29.66 crore (2025: H23.95 crore) as contribution to EPS-95 in the Statement of Profit and Loss/ CWIP (included in Contribution to Provident and Other Funds in Note - 27/ Construction period expenses in Note-2.2).

Pension Scheme

During the year, the company has recognised H529.57 crore (2025: H412.08 crore) towards Defined Contributory Employees Pension Scheme (including contribution in corporate National Pension System) in the Statement of Profit and Loss/ CWIP (included in Contribution to Provident and Other Funds in Note - 27/ Construction period expenses in Note-2.2).

B. Defined Benefit Plans- General Description Provident Fund:

The Company's contribution to the Provident Fund are remitted to the three separate provident fund trusts established for this purpose based on a fixed percentage of the eligible employee's salary and charged to the Statement of Profit and Loss. Shortfall of net income of trust below Government specified minimum rate of return, if any, and loss to the trust due to its investments turning stressed are being made good by the Company.

Gratuity:

Each employee rendering continuous service of 5 years or more is entitled to receive gratuity amount based on completed tenure of service subject to maximum of H0.25 crore at the time of separation from the company.

Post Retirement Medical Benefit Facility (PRMBF):

PRMBF provides medical coverage to retired employees and their eligible dependant family members.

Resettlement Benefit:

Resettlement benefit is allowed to employees to facilitate them to settle down upon retirement.

Ex gratia Scheme:

Ex-gratia is payable to those employees who have retired before January 01, 2007 and either not drawing pension from superannuation benefit fund (as they superannuated prior to January 01, 1987, i.e. introduction of superannuation benefit fund scheme in IndianOil) or are drawing a pension lower than the ex gratia fixed for a Grade (in such case differential amount between pension and ex gratia is paid).

Employees Compensation for injuries arising out of or during the course of employment:

Employees covered under the Code on Social Security, 2020 who meet with accidents, while on duty, are eligible for compensation under the said Act. Besides, a lumpsum monetary compensation equivalent to 100 months' Pay (BP DA) is paid in the event of an employee suffering death or permanent total disablement due to an accident arising out of and in the course of his employment.

Felicitation of Retired Employees:

The company has a scheme to felicitate retired employees on attaining different age milestones with a token lumpsum amount.

C. Other Long-Term Employee Benefits - General Description Leave Encashment:

Each employee is entitled to get 8 earned leaves for each completed quarter of service. Encashment of earned leaves is allowed during service leaving a minimum balance of 15 days subject to maximum accumulation of 300 days. In addition, each employee is entitled to get 5 sick leaves (in lieu of 10 Half Pay Leave) at the end of every six months. The entire accumulation of sick leave is permitted for encashment only at the time of retirement. DPE had clarified earlier that sick leave cannot be encashed, though Earned Leave (EL) and Half Pay Leave (HPL) could be considered for encashment on retirement subject to the overall limit of 300 days. Ministry of Petroleum and Natural Gas (MoPNG) has advised the company to comply with the said DPE Guidelines. However, in compliance to the DPE guidelines of 1987 which had allowed framing of own leave rules within broad parameters laid down by the Government and keeping in view operational complications and service agreements, the company had requested concerned authorities to reconsider the matter. Subsequently, based on the recommendation of the 3^rd Pay Revision Committee, DPE in its guidelines on pay revision, effective from January 01, 2017 has inter-alia allowed CPSEs to frame their own leave rules considering operational necessities and subject to conditions set therein. The requisite conditions in this regard are fully met with by the company.

Long Service Award:

On completion of specified period of service with the company and also at the time of retirement, employees are rewarded with amounts based on the length of service completed. It is a mode of recognising long years of loyalty and faithful service in line with Bureau of Public Enterprises (currently DPE) advice vide its DO No. 7(3)/79-BPE (GM.I) dated February 14,1983. On receipt of communication from MoPNG advising us that the issue of Long Service Award has been made an audit para in the Annual Report of CAG of 2019, the Company has been clarifying its position to MoPNG individually as well as on industry basis as to how Long Service Awards are not in the nature of Bonus or Ex-gratia or honorarium and are emanating from a settlement with the unions under the Industrial Dispute Act as well as with the approval of the Board in line with the DPE's advice of 1983. The matter is being pursued with MoPNG for resolution. Pending this, the provision is in line with Board approved policy.

Leave Fare Allowance (LFA) / Leave Travel Concession (LTC):

LTC is allowed once in a period of two calendar years (viz. two yearly block). An employee has, in any given block period of two years, an option of availing LTC or encashing the entilements of LFA.

D. The summarised position of various Defined Benefit Plans recognised in the Statement of Profit & Loss, Balance Sheet and Other Comprehensive Income are as under:

(Figures given in Unbold & Italic Font in the table are for previous year)

© NOTE-36: COMMITMENTS AND CONTINGENCIES

A. Leases

(a) As Lessee

The Company has entered into various material lease arrangements (including in substance lease arrangements) such as lands and buildings for the purpose of its plants, facilities, offices, retail outlet etc., storage tankages facility for storing petroleum products, time charter arrangements for transportation of crude and petroleum products, transportation agreement for dedicated tank trucks for road transportation of petroleum products, handling arrangement with CFA for providing dedicated storage facility and handling lubes, supply of utilities like Hydrogen, Oxygen, Nitrogen and Water,way leave licences and port facilities among others.

There are no significant sale and lease back transactions and lease agreements entered by the Company do not contain any material restrictions or covenants imposed by the lessor upto the current reporting period.

Details of significant leases entered by the Company (including in substance leases) are as under:

1. Various arrangements on BOO/BOOT basis for Tankages facility, Water Intake facility, Plants for supply of utility gases at Refineries for periods ranging from 15-25 years. In case of BOOT contracts, Lessor will transfer ownership to IOCL at the end of contract period at Nil/Nominal value.

2. Leasehold lands from government for the purpose of plants, facilities and offices for the period 30 to 90 years.

3. Agreements with vessel owners for hiring of dedicated time charter vessels for transportation of Company's crude and petroleum products, these are classified as Transport Equipments.

4. Agreements with Tan ktruck operators for providing dedicated tan ktrucks for transportation of company's petroleum products.

5. Arrangement for lease of land/ dedicated storage tanks for operating Retail Outlets for sale of Petroleum products, setting up terminals/Bottling plant/Lube Blending plant for storing petroleum products/bottling LPG/Manufacturing Lubes respectively.

6. CFA handling arrangement with CFAs for providing dedicated storage facility for handling lubes

As per requirement of the standard, maturity analysis of Lease Liabilities have been shown separately from the maturity analysis of other financial liabilities under Liquidity Risk-Note 40: Financial Instruments & Risk Factors.

Details of items of future cash outflows which the Company is exposed as lessee but are not reflected in the measurement of lease liabilities are as under;

(i) Variable Lease Payments

Variable lease payments that depend on an index or a rate are to be included in the measurement of lease liability although not paid at the commencement date. As per general industry practice, the Company incurs various variable lease payments which are not based any index or rate (variable based on kms covered or % of sales etc..) and are recognised in profit or loss and not included in the measurement of lease liability. Details of some of the arrangements entered by the Company which contain variable lease payments are as under:

1. Transportation arrangement based on number of kms covered for dedicated tank trucks with different operators for road transportation of petroleum, petrochemical and gas products.

2. Leases of Land of Retail Outlets based on Sales volume.

3. Rent for storage tanks for petroleum products on per day basis.

4. Payment of VTS software and VSAT equipment based on performance of equipment.

(ii) Extension and Termination Options

The Company lease arrangements includes extension options only to provide operational flexibility. Company assesses at every lease commencement whether it is reasonably certain to exercise the extension options and further reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant change in circumstances within its control. However, where Company has the sole discretion to extend the contract such lease term is included for the purpose of calculation of lease liabilities

The Company has the sole discretion to terminate the lease in case of lease agreement for Retail Outlets. However, Company is reasonably certain not to exercise the option in view of significant improvement and prominent importance of Retail to the entity's operations. Accordingly, such lease term without any effect of termination is considered for the purpose of calculation of lease liabilities.

(iii) Residual Value Guarantees

The Company have entered into various BOOT agreements wherein at the end of lease term the leased assets will be transferred to the company at Nominal value which has no significant impact on measurement of lease liabilities.

(iv) Committed leases which are yet to commence

1. The Company has entered into 5 nos. of lease agreements on BOO/ BOOT basis for Tankages facility and supply of

utilities for a period ranging from 15 to 25 years. IOCL has sub leased the land for the construction of the plant. These facilities will form part of Right-of-Use Assets once these are available for use.

2. The Company has entered into lease agreement for sourcing e-locks from various vendors for a period of 3 years (with an option to extend at the option of IOCL) at rate ranging from H1,195-H1,428/month. As at March 31, 2026, 2,689 no's are yet to be supplied. However, the same are low value items.

3. The Company has entered into lease agreement for VTS software of LPG trucks for a period of 5 years at a rental

ranging from H400-H411/month. As at March 31,2026 a total of 23,000 nos. of VTS are yet to be installed. However, the

same are low value items.

B. Contingent Liabilities

B.1 Claims against the Company not acknowledged as debt

Claims against the Company not acknowledged as debt amounting to H11626.75 crore (2025: H12242.91 crore) are as under:

B.1.1 H249.21 crore (2025: H813.08 crore) being the demands raised by the Central Excise /Customs/ Service Tax/ GST Authorities including interest of H132.9 crore (2025: H 569.31 crore).

B.1.2 H37.93 crore (2025: H49.36 crore) in respect of demands for Entry Tax from State Governments including interest of H19.44 crore (2025: H18.95 crore).

B.1.3 H1208.64 crore (2025: H1345.09 crore) being the demands raised by the VAT/ Sales Tax Authorities including interest of H790.31 crore (2025: H854.1 crore).

B.1.4 H970.01 crore (2025: H1131.11 crore) in respect of Income Tax demands including interest of H118.81 crore (2025: H109.38 crore).

B.1.5 H8761.87 crore (2025: H 8683.31 crore) including H3821.23 crore (2025: H4075.22 crore) on account of Projects for which suits have been filed in the Courts or cases are lying with Arbitrator. This includes interest of H1830.86 crore (2025: H1350.04 crore).

B.1.6 H399.09 crore (2025: H220.96 crore) in respect of other claims including interest of H52.56 crore (2025: H44.79 crore). This includes ?137.63 crore (2025: ?22.37 crore) in respect of penalty for shortfall in achievement of Minimum Work Programme (MWP) targets for CGD GAs as on 31.03.2026, where show cause notice has been received, reply submitted and extension is awaited from PNGRB.

The Company has not considered those disputed demands/claims as contingent liabilities, for which, the outflow of resources has

been considered as remote. The Company does not expect the outcome of these proceedings to have a materially adverse effect

on its financial position. Contingent liabilities in respect of joint operations are disclosed in Note 33B.

B.2 Guarantees excluding Financial Guarantees

B.2.1 The Company has entered into Master Guarantee Agreement, on behalf of its subsidiaries viz. Indoil Global B.V. and Indoil Montney Ltd. for all of its payments and performance obligations under the various Project Agreements entered by the subsidiaries with PETRONAS Carigali Canada B.V. and Progress Energy Canada Ltd. (now renamed as Petronas Energy Canada Ltd.). The total amount sanctioned by the Board of Directors is CAD 3924.76 million. The estimated amount of such obligation (net of amount paid) as on 31^st March 2026 is H3,176.83 crore - CAD 465.74 million (2025: H2,818.95 crore - CAD 472.50 million). The sanctioned amount was reduced by CAD 1,462.00 million due to winding down of LNG Plant during 2017.

*B.2.2 The Company has issued Corporate Guarantee in favour of three beneficiaries i.e., Bolivarian Republic of Venezuela (Republic), The Corporation Venezolana del Petroleo S.A. and PeTroCarabobo S.A., on behalf of Indoil Netherlands B.V, Netherlands (an associate Company) to fulfil the associate Company's future obligations of payment of signature bonus / equity contribution / loan to the beneficiaries. The total amount sanctioned by the Board of Directors is USD 424 million. The estimated amount of such obligation (net of amount paid) as on 31^st March 2026 is H3,474.29 crore - USD 366.33 million (2025: H3,131.40 crore - USD 366.33 million).

*B.2.3 The Company has issued Corporate Guarantee, on behalf of IndianOil Adani Gas Private Limited (IOAGPL), to the extent of obligations of later company under Performance Bank Guarantee facility provided to IOAGPL by State Bank of India, Canara Bank, Bank of Baroda, Indian Bank, IndusInd Bank, Jammu and Kashmir Bank, Axis Bank and ICICI Bank. On 31^st March, 2026, the Company's share of such obligation is estimated at H3,472.15 crore (2025: H3,472.15 crore).

*B.2.4 The Company has issued Parent Company Guarantee in favour of Abu Dhabi National Oil Company, on behalf of Urja Bharat Pte. Ltd., Singapore (a joint venture company of Company's subsidiary i.e. IOCL Singapore Pte Ltd) to fulfill the joint venture Company's future obligations of payment and performance of Minimum Work Programme. The total amount sanctioned by the Board of Directors is USD 149.94 Million. The estimated amount of such obligation (net of amount paid) is H512.04 crore - USD 53.99 million (2025: H564.08 crore - USD 65.99 million).

* The Company has sought an opinion from Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India on treatment of these as

Financial Guarantee. On receipt of the EAC opinion, appropriate effect will be given in the books of account, if required.

B. 3 Other money for which the Company is Contingently Liable

B.3.1 Pending decision of the Government, no liability could be determined and provided for in respect of additional compensation, if any, payable to the land owners and the Government for certain lands acquired.

B.3.2 As on 31.03.2026, Company has contingent liability of H1,840.14 crore (2025: H1,452.03 crore) towards custom duty for capital goods imported under Manufacturing & Other operation in Warehouse Regulation (MOOWR) scheme against which company has executed and utilised bond amounting to H5,520.42 crore (2025: H4,356.09 crore) which represents three times of the custom duty. The firm liability towards such custom duty shall be contingent upon conditions (Rate of custom duty/ decision of company to export, etc) at the time of filing of ex-bond bill of entry at the time of disposal. In case the Company decides to export such capital goods, the associated costs shall not be significant.

C. Commitments

C.1 Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account and thus not provided for is H30,099.06 crore (2025:

H 41,684.17 crore) inclusive of taxes.

B. Level 2 Hierarchy:

(i) Derivative Instruments at FVTPL: Replacement cost quoted by institutions for similar instruments by employing use of market observable inputs.

(ii) Hedging Derivatives at FVTOCI: Replacement cost quoted by institutions for similar instruments by employing use of market observable inputs.

(iii) Loans to employees: Discounting future cash flows using rates currently available for items on similar terms, credit risk and remaining maturities, adjusted for insignificant unobservable inputs specific to such loan like principal and interest repayments are such that employee get more flexibility in repayment as per the respective loan schemes.

(iv) Non-Convertible Debentures, Loan from Odisha Government and Liability for Capital Expenditure relating to Long Term Contract: Discounting future cash flows using rates currently available for items on similar terms, credit risk and remaining maturities (Excluding floating rate borrowings).

C. Level 3 Hierarchy:

(i) Unquoted Equity Instruments: Fair values of the unquoted equity instruments have been estimated using Market Approach or Income Approach of valuation techniques with the help of external valuer. Valuation as per Market Approach technique is determined by comparing the company's accounting ratios with another company's of the same nature and size which are considered to be significant to valuation, such as earnings, cash flow, book value, or sales of various business of the same nature. Valuation as per Income Approach technique is determined by discounting future cash flows to present value using a discount rate. These valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the tables below.

(ii) Non Convertible Redeemable Preference Shares: Fair value of Preference shares is estimated with the help of external valuer by discounting future cash flows. The valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

(iii) PMUY Loan: Fair value of PMUY loans is estimated by discounting future cash flows using approximate interest rates applicable on loans given by Banks duly adjusted for significant use of unobservable inputs in estimating the cash flows comprising of specific qualitative and quantitative factors like consumption pattern, assumption of subsidy rate etc.

II. Disclosures relating to recognition of differences between the fair value at initial recognition and the transaction price

In the following cases, the Company has not recognised gains/losses in profit or loss on initial recognition of financial assets/ financial liability, instead, such gains/losses are deferred and recognised as per the accounting policy mentioned below.

Financial Assets

1. Loan to Employees

As per the terms of service, the Company has given long term loan to its employees at concessional interest rate. Transaction price is not fair value because loans are not extended at market rates applicable to employees. Since implied benefit is on the basis of the services rendered by the employee, it is deferred and recognised as employee benefit expense over the loan period.

2. PMUY loan

The PMUY loan is the interest free loan given to PMUY beneficiaries towards cost of burner and 1^st refill. The loan is interest free and therefore transaction price is not at fair value. The difference between fair value and transaction price is accumulated in Deferred expenses and amortised over the loan period on straight line basis in the Statement of Profit and Loss.

Financial Liabilities 1. Security Deposits

In case certain deposits payable to deceased employees under one of the superannuation benefit scheme (R2 option) and security deposits received in relation to some revenue expenses contracts, transaction price is not considered as fair value because deposits are interest free. The difference between fair value and transaction price is accumulated in Deferred income and amortised over the tenure of security deposit on straight line basis in the Statement of Profit and Loss.

Financial Risk Factors

The Company's principal financial liabilities, other than derivatives, comprise Borrowings, trade and other payables, security deposits, employee liabilities and lease obligation. The main purpose of these financial liabilities is to finance the Company's operations and to provide guarantees to support its operations. The Company's principal financial assets include loans & advances, trade and other receivables, short-term deposits and cash / cash equivalents that derive directly from its operations. The Company also holds FVTOCI investments and enters into derivative transactions.

The Company is exposed to a number of different financial risks arising from natural business exposures as well as its use of financial instruments including market risk relating to interest rate, commodity prices, foreign currency exchange rates and equity price, credit risk and liquidity risk.

The Risk Management Commitee comprised of senior management oversees the management of these risks. The Company's senior management is supported by a Risk Management Compliance Board that advises on financial risks and the appropriate financial risk governance framework for the Company. The Risk Management Committee provides assurance to the Board that the Company's risks are governed by appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Company's policies, risk objectives and risk appetite.

The Company's requirement of crude oil are managed through integrated function handled through its international trade and optimisation department. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. As per the Company's policy, derivatives contracts are taken only to hedge the various risks that the Company is exposed to and not for speculation purpose.

The Board of Directors oversee the risk management activities for managing each of these risks, which are summarised below:

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The major components of market risk are interest rate risk, foreign currency risk, commodity price risk and other price risk viz. equity shares etc. Financial instruments affected by market risk include Borrowings, Deposits, FVTOCI investments and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at March 31,2026 and March 31,2025.

The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations, provisions, and other non-financial assets and liabilities of foreign operations.

1. Interest Rate Risk

The Company is exposed to interest rate risk from the possibility that changes in interest rates will affect future cash flows of a financial instrument, principally financial debt. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt obligations with floating interest rates.

The Company maintains a mix between fixed and floating rates for rupee and foreign currency loans, based on liquidity, availability of cost effective instruments and considering the market/ regulatory constraints etc. The Company also use interest rate swap contracts for managing the interest rate risk of floating interest rate debt. As at March 31, 2026 approximately 37% of the Company's borrowings are at a fixed rate of interest (March 31, 2025: 37%).

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency) and Borrowings.

The Company manages its foreign currency risk through combination of financial hedge and natural hedge. The hedging is mostly undertaken through forward contracts.

The Company has outstanding forward contract of H 1,442.90 crore as at March 31,2026 (March 31,2025: H 2,634.68 crore) which has been undertaken to hedge its exposure to borrowings and other financial liabilities.

The sensitivity to a reasonably possible change in USD/INR exchange rates, with all other variables held constant, the impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency derivatives. The Company's exposure to foreign currency changes for all other currencies other than below is not material.

The effects of most exchange rate fluctuations are absorbed in business operating results which are offset by changing cost competitiveness, lags in market adjustments to movements in rates to its other non-financial assets like inventory etc. For this reason, the total effect of exchange rate fluctuations is not identifiable separately in the Company's reported results.

Commodity Price Risk

The Company is exposed to various commodity price related risk such as Refinery Margins i.e. Differential between the prices of petroleum products & crude oil, Crude Oil Price fluctuation on accounts of inventory valuation fluctuation and crude oil imports, etc. As per approved risk management policy, the Company can undertake refinery margin hedging, inventory hedging and crude oil price hedging through swaps, options and futures in the OTC market as well as domestic exchanges to mitigate the risk within the approved limits.

4. Equity Price Risk

The Company's investment in listed and non-listed equity securities, other than its investments in Joint Ventures/Associates and Subsidiaries, are susceptible to market price risk arising from uncertainties about future values of the investment securities.

At the reporting date, the exposure to unlisted equity securities at fair value was 75,457.77 crore. Sensitivity analysis of these investments have been provided in Note 39.

The exposure to listed equity securities valued at fair value was 734,156.85 crore. An increase/ decrease of 5% in the share price could have an impact of approximately 71,707.84 crore on the OCI and equity attributable to the Company. These changes would not have an effect on profit or loss.

5. Derivatives and Hedging

(i) Classification of derivatives

The Company is exposed to certain market risks relating to its ongoing business operations as explained above.

Derivatives are only used for economic hedging purposes and not as speculative investments. However, where derivatives do not meet the hedge accounting criteria, they are accounted for at fair value through profit or loss. Information about the derivatives used by the Company and outstanding as at the end of the financial year is provided below:

(ii) Hedging activities

The primary risks managed using derivative instruments are commodity price risk, foreign currency risk and interest rate risk.

Commodity Price Risk

IndianOil buys crude and sells petroleum products linked to international benchmark prices and these benchmark prices do not move in tandem. This exposes IndianOil to the risk of variation in refining margins which is managed by margin hedging.

The risk of fall in refining margins of petroleum products in highly probable forecast sale transactions is hedged by undertaking crack spread forward contracts. The Company wants to protect the realisation of margins and therefore to mitigate this risk, the Company is taking these forward contracts to hedge the margin on highly probable forecast sale in future. Risk management activities are undertaken in OTC market i.e. these are the bilateral contracts with registered counterparties.

The Company is exposed to various foreign currency risks as explained in A.2 above. As per Company's Foreign Currency & Interest Rate Risk Management Policy, the Company is required to fully hedge the short term foreign currency loans (other than revolving lines and PCFC loans) and at least 50% of the long term foreign currency loans based on market conditions.

Apart from mandatory hedging of loans, the Company also undertakes foreign currency forward contracts for the management of currency purchase for repayment of crude/ product liabilities based on market conditions and requirements. The above hedgings are undertaken through delivery based forward contracts.

All these hedges are accounted for as cash flow hedges.

Interest Rate Risk

The Company is exposed to interest rate risks on floating rate borrowings as explained in A.1 above. Company hedges interest rate risk by taking interest rate swaps as per Company's Interest Rate Risk Management Policy based on market conditions. The Company uses interest rate derivatives to hedge exposure to interest payments for floating rate borrowings denominated in foreign currencies.

All these hedges are accounted for as cash flow hedges.

Hedge Effectiveness

There is an economic relationship between the hedged items and the hedging instruments as the terms of the foreign exchange and commodity forward contracts match the terms of hedge items. The Company has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of the foreign exchange, interest rate and commodity forward contracts are identical to the hedged risk components. To test the hedge effectiveness, the Company compares the changes in the fair value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks. In case of interest rate swaps, as the critical terms of the interest rate swap contracts and their corresponding hedged items are similar, the Company performs a qualitative assessment of effectiveness and it is expected that the value of the interest rate swap contracts and the value of the corresponding hedged items will systematically change in opposite direction in response to movements in the underlying interest rates.

Source of Hedge ineffectiveness

In case of commodity price risk, the Company has identified the following sources of ineffectiveness, which are not expected to be material:

• Differences in the timing of the cash flows of the hedged items and the hedging instruments

• Different indexes linked to the hedged risk of the hedged items and hedging instruments

• The counterparties' credit risk differently impacting the fair value movements of the hedging instruments and hedged items

• Changes to the forecasted amount of cash flows of hedged items and hedging instruments

In case of foreign currency risk and interest rate risk, the main source of hedge ineffectiveness is the effect of the counterparty and the Company's own credit risk on the fair value of hedge contracts, which is not reflected in the fair value of the hedged items. The effect of this is not expected to be material.

Other Financial instruments and cash deposits

The Company's maximum exposure to credit risk for the components of the Balance Sheet at March 31,2026 and March 31,2025 is the carrying amounts as provided in Note 4, 5, 6,11 & 12. The Company applies General approach for providing the expected credit losses on these items as perthe accounting policy of the Company.

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are as per Company's Board approved policy. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.

The Company has given loans to PMUY (Pradhan Mantri Ujjwala Yojana) customers which are shown under Loans in Note-5. PMUY loans are given to provide clean cooking fuel to BPL families as per GOI scheme wherein free LPG connections are issued by Oil Marketing Companies (OMCs) to the women belonging to the Below Poverty Line (BPL) households. As per the scheme, OMCs are providing an option for interest free loan towards cost of burner and 1^st refill to PMUY consumers which is to be recovered from the subsidy amount payable to customer when such customers book refill.

In case of certain PMUY loans, the Company has determined that there is significant increase in the credit risk. The Company considers the probability of default upon initial recognition of the loan and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. It considers past experience and time elapsed since the last refill for determining probability of default on collective basis. The Company has categorised the PMUY loans wherein credit risk has increased significantly under various categories considering the likelihood of default based on time gap since last refill. ECL is provided @70% (2025: @70%) in case of time gap since last refill is more than 6 months but not exceeding 12 months, @ 80% (2025: @ 80%) in case of time gap since last refill is more than 12 months but not exceeding 18 months, @ 90% (2025: @ 90%) in case of time gap is more than 18 months but not exceeding 24 months and @ 100% (2025: @100%) for those consumers who have not taken any refill more than 24 months. ECL is provided for the loans where the refill is taken within last 6 months (2025: 6 months) based on experience ratio of more than 6 months (2025: 6 months) as above. The PMUY loans are classified as credit impaired as on reporting date considering significant financial difficulty in case the customer has not taken any refill from past 24 months (2025: 24 months).

Note: The maturity analysis is presented based on gross contractual cash flows, whereas financial liabilities in the Financial Statements are measured at amortised cost. Accordingly, comparative figures for the previous year have also been presented on gross basis (the amortised cost of which was ?2,59,127.30 crore) to ensure comparability.

D. Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company's performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

E. Collateral

As Company has been rated investment grade by various domestic and international rating agencies, there has been no requirement of submitting any collateral for booking of derivative contracts. Company undertakes derivatives contract only with those counterparties that have credit rating above the internally approved threshold rating. Accordingly, Company does not seek any collaterals from its counterparties.

© NOTE-41: CAPITAL MANAGEMENT

The primary objective of the company's capital management is to maximise the shareholder value. Capital includes issued equity capital, share premium and all other equity reserves, attributable to the equity shareholders, for the purpose of the Company's capital management.

© NOTE-46: DISCLOSURE ON GOVERNMENT GRANTS A. Revenue Grants

1 Subsidies on sales of SKO (PDS) and LPG (Domestic)

Subsidies on sales of SKO (PDS) in India amounting to H 124.27 crore (2025: H 33.03 crore) and subsidies on sales of LPG (Domestic) to customers in Bhutan amounting to H 10.86 crore (2025: H 15.39 crore) have been reckoned as per the schemes notified by Governments.

2 Export of Notified Goods under RoDTEP/Duty Drawback scheme

The Company has recognised H 38.34 crore (2025: H 31.01 crore) on export of notified goods under Remission of Duties and Taxes on Exported Products (RoDTEP)/Duty Drawback scheme in the Statement of Profit and Loss as Revenue Grant.

3 Grant for under-recoveries in Domestic LPG

The company has recognised ? 6035.85 crore (2025: NIL) from Ministry of Petroleum & Natural Gas for under-recoveries incurred on sale of Domestic LPG which is recognised as Revenue from Operations in the Statement of Profit & Loss (Refer Note 23)

4 Stipend to apprentices under NATS/NAPS scheme

As per Ministry of HRD & Skill development and Enterpreneurship, a portion of stipend and basic training cost for apprentices will be reimbursed to employer by Government under National Apprenticeship Training Scheme (NATS) and National Apprenticeship Promotion Scheme (NAPS), subject to prescribed threshold limit. The Company has recognised grant in respect of stipend paid to apprentices & basic training cost under NATS & NAPS amounting to ? 0.14 crore (2025: ? 0.31 crore) as Revenue Grant.

5 Incentive on sale of power

The Company is getting incentive from Department of Renewable Energy, GOI for wind power generation of Electricity at the rate of ? 0.50 paise for per unit of power generated. The Company has received grant of NIL during the current year. (2025: ? 0.01 crore)

6 Excise duty benefit in North East

Excise duty exemption of 50% of goods manufactured and cleared from north east refineries has been reckoned at full value in revenue and on net basis in expenses under 'Excise Duty' (to the extent of duty paid). Financial impact for the current year is ? 4742.12 crore (2025: ? 3885.58 crore).

7 Viability Gap Funding (VGF)

The Company has received grant in the form of interest free loans from Odisha Government for a period of 15 years.The unamortised grant amount as at March 31, 2026 is H 3208.84 crore (2025: H 3100.61 crore). During the year, the Company has recognised H 280.76 crore (2025: H 273.26 crore) in the Statement of Profit and Loss as amortisation of grants.

8 Post Export EPCG Grant

Post Export EPCG grants are received in respect of Import duties paid on procurement of capital goods under Post Export EPCG Scheme of Central Govt. which allows refund of Basic custom duty in the form of duty scripts upon fulfilment of an export obligation. During the year, the Company has recognised NIL (2025: H 1.84 crore) as Revenue Grant in the Statement of Profit & Loss.

B. Capital Grants

1 OIDB Government Grant for strengthening distribution of SKO (PDS)

The Company has received government grant from OIDB (Oil Industry Development Board) for strengthening distribution of PDS Kerosene as per the directions of MoP&NG to be used in construction of 20KL underground Tank, Mechanical Dispensing Units and Barrel Shed. The unamortised capital grant amount as at March 31,2026 is H 0.19 crore (2025: H 0.20 crore). During the year, the Company has recognised H 0.01 crore (2025: H 0.11 crore) in Statement of Profit and Loss as amortisation of capital grants.

2 Capital Grant in respect of Excise duty, Custom duty and GST waiver

The Company has received grant in respect of Custom duty waiver on import on capital goods, Excise duty waiver and GST waiver on purchase of goods from local manufacturer in India under the certificate issued by Department of Scientific and Industrial Research (DSIR). The unamortised capital grant amount as at March 31,2026 is H 32.11 crore (2025: H 38.81 crore) The goods so imported or procured from local manufacturer shall not be transferred or sold for a period of five years from date of installation. During the year, the Company has recognised H 6.70 crore (2025: H 10.67 crore) in the Statement of Profit and Loss as amortisation of capital grants. However, the scheme of GST concession on purchase of goods from local manufacturer under certificate issued by DSIR has been discontinued from 18.07.2022 and accordingly no new grant has been recognised thereafter in this regard.

3 Capital Grant in respect of Research projects

The Company has received capital grant from various agencies in respect of procurement/ setting up of Capital assets for research projects undertaken. The unamortised capital grant amount as at March 31, 2026 is H 84.55 crore (2025: H 66.68 crore). During the year, the Company has recognised H 11.50 crore (2025: H 32.67 crore) in the Statement of Profit and Loss as amortisation of capital grants.

4 Capital Grant in respect of Entry Tax Exemption from Odisha Govt.

Entry Tax exemption received from Odisha Government for Paradip Refinery Project has been recognised as Capital Grant and grossed up with the concerned Assets.The unamortised capital grant amount as at March 31, 2026 is H 78.88 crore (2025: H

84.22 crore). During the year, the Company has recognised H 5.34 crore (2025: H 5.33 crore) in the Statement of Profit and Loss as amortisation of capital grants.

5 Capital Grant in respect of demonstration unit

Grant received from OIDB/CHT/USTDA for setting up units for Ethanol production from Refinery off gases/Ligncoellulosic Biomass at Panipat Refinery. The unamortised capital grant amount as at March 31, 2026 is H 292.43 crore (2025: H 308.93 crore). During the year, the Company has recognised H 16.49 crore (2025: H 11.50 crore) in the Statement of Profit and Loss as amortisation of capital grants.

6 Capital Grant in respect of construction of units using Indigenous Technology

Grant received from OIDB for setting up of demonstration unit at Guwahati refinery with the company's R&D developed IndaDeptG technology. The unamortised capital grant amount as at March 31,2026 is H 50.13 crore (2025: H 53.85 crore). During the year, the company has recgnised H 3.72 crore (2025: H 3.72 crore) in the Statement of Profit and Loss as amortisation of capital grants.

7 Capital Grant in respect of interest subsidy

The Company has received capital grant in respect of interest subsidy on loans taken from OIDB. The unamortised capital grant amount as at March 31,2026 is H 9.26 crore (2025: H 9.78 crore). During the year, the Company has recognised H 0.52 crore (2025: H 0.52 crore) in the Statement of Profit and Loss as amortisation of capital grants.

8 Capital Grant in respect of Solar Power Generation

The Company has received capital financial assistance from Ministry of New and Renewable Energy in respect of procurement and installation of Solar Panels for Power Generation. The unamortised capital grant amount as at March 31, 2026 is H 2.90 crore (2025: H 3.19 crore). During the year, the Company has recognised H 0.18 crore (2025: H 0.19 crore) in the Statement of Profit and Loss as amortisation of capital grants.

9 Capital Grant from Nepal Government

The Company has received grant from Nepal Government by way of waiver of Local taxes on goods/services procured locally in Nepal and Import Duty for goods/services imported into Nepal. The Company has recognised H 2.22 crore (2025: H 1.48 crore) in Statement of Profit & Loss. The unamortised balance is H 13.30 crore (2025: H 15.46 crore)

10 Capital Grant for establishing EV Charging Station (EVCS) at Retail Outlets

The Company had received grant from Ministry of Heavy Industries (MHI) for establishing and upgradation/deployment of EV Charging stations (EVCS) at ROs under Faster Adoption and Manufacturing of Electric Vehicles (FAME) India Scheme Phase-II in March 2023. Out of total sanctioned amount of H 389.27 crore, H 272.49 crore was received in advance and balance amount H116.79 crore is received during the year. The unamortised balance as at March 31,2026 is H 382.76 crore (2025: H 389.17 crore). During the year, the Company has recognised H 6.41 crore (2025: H 0.11 crore) in the Statement of Profit and Loss as amortisation of capital grants.

The Company has received grant sanction letter from Ministry of Heavy Industries for establishing EV Public Charging stations (EVCS) at ROs under PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) in March 2026. Since the work has not started as on 31.03.2026, no amount is recognised in the statement of Profit and loss. The unamortised balance as at March 31,2026 is H 24.36 crore (2025: NIL).

© NOTE-47: REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company is in the business of oil and gas and it earns revenue primarily from sale of petroleum products, petrochemicals,Gas, E&P and Others. Revenue is recognised when control of the goods and services is transferred to the customer.

Generally, Company enters into contract with customers:

a. On delivered basis in case of Retail Sales, LPG and Aviation.

b. On Ex-Marketing Installation as well as delivered basis in case of Lubes and Consumers.

c. On FOB or CIF basis depending on terms of contract in case of Export sales.

Majority of Company's sales are to retail category which are mostly on cash and carry basis. Company also execute supply to Institutional Businesses(IB), Lubes, Aviation on credit which are for less than a year.

For maintaining uninterrupted supply of products, customers generally deposit amount in advance with the Company against which orders for purchase of products are placed by the customers. Based on these orders, supply is maintained by the Company and revenue is recognised when the goods are delivered to the customer by adjusting the advance from customers. Revenue in cases of performance obligation related to delivered sales are recognised in time based on delivery of identified and actual goods and no significant judgement is involved.

The Company also extends volume/slab based discounts to its customers on contract to contract basis for upliftment of products and it is adjusted in revenue as per the terms of the contract. Company also runs loyalty programmes and incentive schemes for its retail and bulk customers. Loyalty points are generated and accumulated by the customers on doing transactions at Company's outlet which can be redeemed subsequently for fuel purchases from Company outlets. Revenue is recognised net of these loyalty points and incentive schemes.

Besides this, though not significant, the Company also undertakes construction contracts on deposit basis. Revenue is recognised for these contracts overtime using input based on cost incurred. Similarly non-refundable deposits received from Retail Outlets (ROs) are recoanised as revenue over time on Drooortionate basis.

© NOTE-49: OTHER DISCLOSURES

1 The Pradhan Mantri Ujjwala Yojana (PMUY) scheme was launched on May 1,2016, for women belonging to the Below Poverty Line (BPL) households. As perthe scheme, initial cost of LPG connection towards Security Deposit is borne by the Government of India for each card holder and Oil Marketing Companies (OMCs) provide an option for EMI / Loans towards cost of burner and 1^st refill to PMUY consumers. This loan amount is to be recovered from subsidy amount payable by the government to the customers on each refill. The carrying amount of PMUY loan is remeasured every year considering revised estimated future contractual cash flows, based on assumption of average refills in a year and average subsidy rate per cylinder under respective range of subsidy buckets.

As at 31^st March 2026, outstanding loans to PMUY consumers, net of recovery through subsidy is H 2,020.68 crore (2025: H 2,180.76 crore) and its present value is H 1,468.53 crore (2025: H 1,532.44 crore). Against these loan, provision for expected credit loss (ECL) amounting to H 1,212.75 crore (2025: H 1,226.99 crore) has been created as at 31^st March 2026 in lieu of beneficiaries who have not taken any refill for more than 6 months based on ECL model and applying experience factor of doubtful provision on more than 6 months to the loans in less than 6 months category. (Also refer Credit Risk under Note 40).

2 During the year, the Company has recognised an impairment loss of H 1,234.51 crore (2025: H 24.63 crore) in respect of investment in subsidiary / associates / Joint ventures. This includes H 1,219.57 crore (2025: Nil) impairment against investment in IndOil Global B.V, based on an independent valuation using discounted cash flow method, mainly due to reduction in the estimated reserves based on the changes in development plan. The loss is disclosed under "Impairment Loss on Financial Assets” and is un-allocable to reportable segments.

3 During the year, the non-fossil / off-gas based fuel production facilities have been recognised as independent Cash Generating Units(CGUs) based on the prevailing market conditions. The recoverable value for impairment testing of these facilities is determined based on Value in Use at a pre-tax discount rate of 8.30% per annum or Fair Value Less Costs of Disposal as applicable. The fair value less costs of disposal has been categorised under Level 3 of the fair value hierarchy and is based on the estimated scrap value of the respective CGU. Impairment loss of H 1,212.42 crore has been recognised during the year and included in the Petroleum Products segment.

Further, due to variation in the capacity utilisation factors of windmills, impairment loss of H 12.99 crore (2025: H 66.07 crore) has been recognised based on its value in use computed considering a discounting rate of 8.30%

4 The Principal Controller of Defence Accounts (PCDA) and Indian Air Force had deducted H621.25 crore and H68.78 crore respectively from the regular supplies on account of the price differential on supplies made between January 2022 to March 2023. The Company has been contesting this claim directly and also through the Ministry of Petroleum and Natural Gas (MoPNG). Though matter is still under deliberation, a provision towards Expected Credit Loss of H690.03 crore has been created during the year based on pending any development and ageing. Accordingly, the same has been shifted to disputed trade receivables - credit impaired (Note-10).

5 The Company holds 50% participating interest in the onshore Block Shakthi, Gabon, under a consortium arrangement with Oil India Limited (OIL), which is the operator of the block. The exploration license for the block expired on 15 April 2025 and an intent to relinquish the block has been submitted. Based on discussions between OIL and Directorate General of Hydrocarbons, Gabon, Liquidated Damages were paid by OIL on behalf of the consortium.

During the year, the Company has made provision of H 203.17 crore against Intangible Assets Under Development and H 0.02 crore against Capital Work in Progress, and recognised H 179.72 crore towards Liquidated Damages, contractual foreclosure and administration costs under Exploration & Production Cost in Note 29.1 against this block.

6 The Retired Officers Welfare Society consisting of employees retired from the Company and other individual retired employees filed writ petitions in Delhi High Court in the year 2017 alleging that Self Contributory pension scheme, setup in the year 1987 and providing benefit on defined benefit basis titled as Superannuation Benefits Fund Scheme, was arbitrarily terminated in year 2011 by company w.e.f. 01.01.2007. In April 2025, the Hon'ble Delhi High Court passed an order directing that the monthly pension of petitioners be re-fixed under a Defined Benefit Scheme and the arrears be paid along with interest. Impact of the Court order is not ascertainable in view of the varied possible scenarios.

Based on external legal opinion, prima-facie the Company is not responsible for the self-contributory and self-sustaining scheme prepared, managed and run by a separate independent and legal entity being a Trust. The company has filed appeals against the order passed by Hon'ble Delhi High Court in writ petitions and vide order dated 28.05.2025, the order passed by Delhi High Court in April 2025 has been stayed. The management is confident that no liability shall devolve on the company and hence no provision is required.

7 In the end of February 2026, conflict arose in Middle East region leading to supply uncertainties and resultant volatility in the price of crude oil and petroleum products in the international market. However, the profitability for the year 2025-26 was largely insulated from the impact of these developments due to inventory procured at normal prices before the conflict.

8 The Company participates in Supplier Finance Arrangements through Trade Receivables Discounting System (TReDS) platforms approved by the Reserve Bank of India. Under these arrangements, MSME suppliers may upload invoices raised on the Company on the TReDS platform. Upon acceptance of such invoices by the Company, participating banks and financial institutions offer discounting rates on the invoices, enabling suppliers to accept best rate and receive early payment. The Company settles the obligation directly with the financier on the agreed due date as per purchase orders on supplier. The Company does not provide any guarantees or financial collateral to suppliers or financiers under these arrangements. Accordingly, these arrangements do not have any impact on the liabilities, cash flows, or liquidity position of the Company.

9 There are no other significant subsequent events that would require adjustments or disclosures in the Financial Statements as at Balance Sheet date, other than those disclosed above.