Motilal Oswal has maintained a Neutral rating on Indian Oil Corporation Limited (IOCL) with a target price of ₹150 in its research report dated August 02, 2026. According to the brokerage's analysis, IOCL currently trades at 0.8x 1-year forward P/B ratio, which is below its 10-year average. The valuation is based on a Sum-of-the-Parts (SoTP) methodology, as reported by Moneycontrol.
IOCL's Q1 FY27 EBITDA came in at ₹19.5 billion, significantly beating the estimated EBITDA loss of ₹161 billion. However, loss after tax was ₹26.6 billion, which was 83% below Motilal Oswal's estimate. The strong performance was driven by marketing inventory gains of over ₹150 billion during the quarter, as reported by Moneycontrol.
As of August 4, 2026, IOCL shares are trading at ₹142.74, representing a 24.46% decline from its 52-week high of ₹188.96 and a 9.61% increase from its 52-week low of ₹130.22. The stock has experienced significant volatility, with a 16.8% decline over the past 6 months and a 27.85% drop over the past 30 days. The company's market capitalisation stands at ₹2,02,922.20 crore as of the latest trading session.
The company's Gross Refining Margin (GRM) net of SAED stood at USD 15.6 per barrel, falling short of the estimated USD 17 per barrel. LPG under-recovery of ₹102 billion was booked in Q1, compared to ₹2.4 billion in Q4 FY26. Gross marketing margin stood at ₹(1.5) per litre, which was better than the estimated ₹(8) per litre, according to Moneycontrol reports.
IOCL's current trading multiples reflect the challenging market conditions, with the stock trading at a discount to historical averages. The Neutral rating reflects the company's positioning in the current market environment, as noted by Motilal Oswal in their research report. The brokerage's valuation methodology suggests a cautious approach to the stock's near-term prospects, particularly given the recent 111.3% average quarterly decrease in net profit over the last two quarters, with profits declining from ₹14.45 crore to ₹1.63 crore.
