Indian Oil shares up nearly 3% after Q4 PAT rises 78% YoY on healthy petroleum products business growth

The NSE filings showed that Indian Oil’s net profit after tax (attributable to the owners) surged 78% to ₹14,458 crore in the fourth quarter of the financial year ended 2025-26, compared with ₹8,123 crore in the same period a year earlier.

The company’s strong net profit growth comes on the backdrop of a healthy rise in its core revenues for the period. The company’s income from the petroleum products business was the primary contributor to the positive earnings in the March quarter despite supply chain disruptions.

Although the company recorded major losses in the sale of petrol, diesel and other products due to the high prices in the market, the healthy marketing and refining margins in the overall March quarter supported the earnings amid a global energy market impact.

Indian Oil’s revenue from core operations rose 7% to over ₹2.36 lakh crore in the fourth quarter, compared with around ₹2.06 lakh crore in the same quarter last year.

As of 9:39 am, Indian Oil shares were trading 1.93% higher at ₹134.30 on Tuesday's market, compared to the previous market close level of ₹131.81, according to NSE data.

Segmental revenue growth

State-run refining giant, Indian Oil (IOCL), successfully posted positive earnings growth in the fourth quarter of the year ended 2025-26, with the help of strong operations performance across its business units and healthy inventory for the period.

IOCL’s income from the petroleum products business witnessed a 6.8% YoY rise to ₹2.20 lakh crore, compared with ₹2.06 lakh crore in the same period a year ago, as per the consolidated financial statements.

The company’s petrochemicals business revenues advanced 10% to ₹8,010 crore in the fourth quarter, compared year-on-year with ₹7,225 crore in the same period a year earlier. While the income from the natural gas business rose 1.6% to ₹11,377 crore, from ₹1,1189 crore a year ago.

The data further showed that the company’s operating margin advanced by 344 basis points to 8.4% in the March quarter, compared with 4.96% in the same period a year earlier. Along with the operating margin, Indian Oil’s net profit margin also improved to 6.41%, from 3.78% in the year-ago period.

Indian Oil also announced that it will be forming a 50:50 joint venture with M11 Energy Transition Pvt. Ltd. to set up a 100 KTPA HEFA-based Sustainable Aviation Fuel Project at Paradip.

The project is expected to cost around ₹1,063.60 crore, subject to the necessary approvals.

Indian Oil dividend issue

Indian Oil’s board of directors also recommended a ₹1.25 per share final dividend issue for shareholders, subject to the approval of the members in the upcoming annual general meeting of the firm.

If approved, IOCL will pay a ₹1.25 per share final dividend with a face value of ₹10 apiece to shareholders for every stock they own of Indian Oil, up to one day ahead of the pre-determined record date of the corporate action.

The “board has recommended a final dividend of 12.5% for the year 2025-26, i.e. ₹1.25 per equity share of face value of ₹10/- each on the paid-up share capital, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the company,” said Indian Oil in its exchange filing.

The company is yet to announce the official record date; however, the final dividend will be paid within 30 days from the upcoming annual meeting of the firm.

Indian Oil share price

Indian Oil shares closed 2% lower at ₹131.81 ahead of the earnings announcement on Monday, compared to $134.48 at the previous market session, as per the NSE data. The company announced its results on Monday night.

IOCL shares have delivered more than 84% returns on their investment in the last five years, and 53% gains in the last three years, as per the exchange data. However, the company’s stock has post 8% in the past one year, and is down 20% so far in 2026.

The company’s market capitalisation (m-cap) was at over 1.86 lakh crore as of Monday’s market close.