Indian Oil Corporation delivered exceptional Q4 FY26 results, with standalone net profit surging 56.61% to ₹11,377.51 crore compared to ₹7,264.85 crore in Q4 FY25. The company's revenue from operations (excluding excise duty) rose 6.62% YoY to ₹2,07,883.23 crore in Q4 FY26, up from ₹1,94,967.02 crore in the same quarter last year. Profit before tax jumped 74.38% to ₹15,322.37 crore, demonstrating strong operational performance across the quarter. For the full fiscal year FY26, IOC posted a record standalone net profit of ₹36,802.42 crore, sharply higher than ₹12,961.57 crore reported in FY25. The record quarter profit came despite the company suffering huge losses on selling petrol, diesel, and cooking gas LPG below cost in March, as it, along with other state-owned fuel retailers, insulated the domestic market from volatility that hit the international market after the start of the West Asia conflict.
IOC achieved multiple record highs in FY26, with refineries achieving their highest-ever crude throughput of 75.4 million tonnes (MMT) while maintaining operational reliability of 99.5%. Pipeline throughput also touched a record 105.3 MMT during the year, while consolidated sales volume of petroleum products rose to an all-time high of 104.4 MMT, up around 4% from 100.3 MMT in the previous year. The marketing segment showed strong expansion with the company commissioning a record 909 retail outlets during the year, strengthening its presence and supporting market share gains across nine of the top 10 national highways. The lubricants business delivered record sales of 855 thousand metric tonnes (TMT), registering about 15% growth, significantly outperforming the broader industry growth of around 4%. The petrochemicals segment also posted its best-ever performance, with sales reaching 3.22 MMT and production at 3.4 MMT, while RLNG sales stood at approximately 5.60 MMT (excluding internal consumption), reflecting steady demand in the portfolio.
Operating margin improved significantly to 6.67% in Q4 FY26 compared to 4.44% in Q4 FY25, while net profit margin increased to 4.89% from 3.34% in the corresponding quarter of the previous fiscal year. The board has recommended a final dividend of 12.5% for FY2025-26, equivalent to ₹1.25 per equity share of face value ₹10 each, to be paid within 30 days from AGM declaration. Revenue growth was supported by healthy refining margins and improved fuel marketing performance before the full impact of the ongoing West Asia conflict weighed on global energy markets.
The board has approved formation of a 50:50 joint venture company with M11 Energy Transition for setting up a 100 KTPA HEFA-based Sustainable Aviation Fuel (SAF) project at Paradip, at an estimated cost of ₹1,063.60 crore (30%) subject to approvals from NITI Aayog, DIPAM and other authorities. Indian Oil Corporation is a Maharatna PSU under the Government of India, operating across the entire hydrocarbon value chain including refining, pipeline transportation, and marketing of petroleum products.
IOC shares traded 2.5% higher at ₹135.15 on the NSE at around 10:35 am on Tuesday, after hitting an intraday high of ₹135.63. Other oil marketing company stocks also traded higher on Tuesday, with shares of Hindustan Petroleum Corporation and Bharat Petroleum Corporation gaining after petrol and diesel prices were raised for the second time in a week. Investors are now closely tracking the impact of the ongoing geopolitical tensions in West Asia on oil prices and refining margins, with April-June expected to be the first quarter when the full impact of the West Asia conflict will be witnessed. The conflict started with the US and Israel attacking Iran on February 28, followed by Tehran's sweeping retaliation that shut the Strait of Hormuz, a key global oil and gas shipping route through which a bulk of India and the world's oil and gas supplies flowed.
