The Indian Oil Corporation shares surged 3.14% to an intra-day high after it reported its quarterly results for Q4FY26. The sharp surge in crude prices has been a continuing worry for most oil and gas stocks, especially the oil marketing companies. However, IOC surprised the street and delivered higher profit in Q4. Motilal Oswal, however continues to remain ‘Neutral’ on the stock.
Motilal Oswal on IOC
Motilal Oswal has maintained its Neutral rating on the stock as of now and is awaiting the conference call for further re-rating.
The company’s EBITDA came in 30% above the brokerage’s estimate at Rs 21,940 crore, rising 62% YoY. LPG under-recovery of Rs 240 crore was booked in Q4, compared to Rs 960 crore in Q3.
The company’s marketing and refining throughput came in line with Motilal Oswal’s estimates. The petchem segment posted an EBIT of Rs 1,210 crore, as against an EBIT loss of Rs 360 crore in Q3.
How did IOC manage to deliver profits in Q4
The profitability for FY26 was largely insulated from the impact of geopolitical developments due to inventory procured at normal prices before the conflict.
The US-Iran conflict began on February 28. Though it led to supply uncertainties and volatility in the price of crude oil and petroleum products in the international market, this was almost the end of Q4 for the company.
IOC added that inventories included 3 crude oil shipments valuing Rs 5,411.83 crores and 5 LPG shipments valuing Rs 618.64 crores, which were waiting in the Arab Gulf/Persian Gulf region as on 31st March 2026.
“The MoP&NG, through letters dated 3rd/24th October 2025, approved a compensation of Rs 14,490 crore to the company for under-recoveries on the sale of domestic LPG up to 31st March 2025, and those expected up to 31st March 2026. The amount will be released in 12 equal monthly installments, with accruals recognised monthly starting in November 2025. Accordingly, three equal monthly installments totalling Rs 3,620 crore have been recognised in Q4,” said Motilal Oswal.
IOC Q4FY26
The company’s net profit surged to Rs 14,458 crore in Q4FY26 from Rs 8,123 crore in Q4FY25, which is a growth of 78% year-on-year. The jump in net profit was on the back of healthy marketing and refining margins before the full impact of the ongoing war-driven disruption in global energy markets hit earnings.
The company’s consolidated revenue from operations rose marginally to Rs 2.36 lakh crore, compared to Rs 2.21 lakh crore in the same period a year back.
Its total income for the quarter came in at Rs 2.38 lakh crore, rising from Rs 2.22 lakh crore in Q4FY25.
Its standalone net profit increased to Rs 11,377.51 crore from Rs 7,264.85 crore a year back.
For the whole of FY26, the company reported a consolidated revenue from operations of Rs 8.91 lakh crore, compared to Rs 8.50 lakh crore in FY25. Its net profit sees a steep rise to Rs 44,677 crore in FY26 from Rs 13,789 crore in the previous fiscal year.
IOC’s share price performance
The share price of Indian Oil Corporation has fallen 2% in the last five trading sessions. The stock has fallen almost 8% in the past one month and 20% in the last six months. Indian Oil Corp’s share has declined 6% over the past one year.
