Indian Oil Corporation shares rise nearly 3% after Q4 PAT jumps 78%; board announces ₹1.25 dividend

Shares of Indian Oil Corporation gained nearly 3% on Tuesday after the state-run oil refining major reported strong March quarter earnings, supported by healthy growth in petroleum products revenue, improved refining margins, and better operational performance across segments.

The stock opened at ₹134.10 against the previous close of ₹131.81 and touched an intraday high of ₹135.63 on the NSE. At 10:32 AM on May 19, 2026, the stock was trading at ₹134.90, up ₹3.09 or 2.34%.

Indian Oil Corporation Q4FY26 profit surges 78%

Indian Oil reported a consolidated profit after tax attributable to owners of ₹14,458 crore in Q4FY26, marking a 78% year-on-year increase from ₹8,123 crore in the same quarter last year. According to another filing, consolidated net profit stood at ₹15,176.08 crore against ₹8,367.63 crore in Q4FY25, reflecting an 81% rise.

Sequentially, PAT grew 11% from ₹13,007 crore reported in Q3FY26.

For the full financial year FY26, consolidated net profit surged 216.7% to ₹43,677.32 crore.

The company said profitability remained largely protected from Middle East crude supply disruptions due to inventory procured before the conflict period.

Indian Oil Corporation Revenue rises 7% YoY

Revenue from operations during the March quarter increased 7% to ₹2,36,899 crore compared with ₹2,21,360 crore in Q4FY25. Total income also rose 7.2% to ₹2.38 lakh crore.

Revenue growth was driven by higher petroleum products sales, improved refinery throughput, and steady performance in petrochemicals and gas businesses.

Revenue from the petroleum products business rose 6.8% year-on-year to ₹2.20 lakh crore from ₹2.06 lakh crore.

The petrochemicals business recorded 10% growth in revenue to ₹8,010 crore against ₹7,225 crore last year, while natural gas business revenue increased 1.6% to ₹11,377 crore from ₹11,189 crore.

Indian Oil’s refinery throughput increased to 19.732 million tonnes during the quarter from 18.548 million tonnes a year ago. Domestic sales also improved to 26.065 million tonnes from 24.601 million tonnes.

Indian Oil Corporation Margins improve sharply

Operating margin expanded by 344 basis points to 8.40% in Q4FY26 from 4.96% a year ago. Sequentially, it improved from 7.94% in Q3FY26.

Net profit margin improved to 6.41% from 3.78% in Q4FY25.

Profit before tax stood at ₹19,791 crore compared with ₹10,044 crore in the year-ago quarter.

The company also improved its debt-to-equity ratio to 0.53 from 0.75 a year ago. Total assets increased to ₹5,28,956 crore as of March 31, 2026.

LPG compensation and SAF project

The oil ministry approved compensation of ₹14,486 crore to Indian Oil towards LPG under-recoveries up to March 31, 2026.

The company also approved 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 with an estimated investment of ₹1,063.60 crore.

Indian Oil Corporation Final dividend announced

Indian Oil’s board recommended a final dividend of ₹1.25 per equity share of face value ₹10 each for FY26, subject to shareholder approval at the upcoming AGM.

The company said the dividend will be paid within 30 days of declaration at the AGM. The official record date is yet to be announced.

Indian Oil Corporation Stock performance

Indian Oil shares had closed 2% lower at ₹131.81 on Monday ahead of the earnings announcement. The stock has delivered over 84% returns in the last five years and 53% gains in the past three years. However, the stock remains down 8% over the last one year and has declined 20% so far in 2026.