Indian Oil Corporation Share Price: As the earnings season is underway, several companies have been sharing their earnings for the fourth quarter ended March 31, 2026. Indian Oil Corporation Ltd (IOCL) has also declared its earnings for Q4 FY26 on Monday, May 18. Along with the Q4 results, the oil company has also announced a dividend for its shareholders.
Despite the company's strong Q4 results, the brokerage firm, Nuvama Research, has maintained a reduced rating. Check out the reasons along with the latest target price.
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Indian Oil Corporation Share Price: Brokerage maintains 'hold' rating - Here's why
The brokerage firm Nuvama Research upgraded its rating to hold, with a target price of Rs 148. Here's why:
The brokerage highlighted that, despite subdued near-term earnings visibility, the downside appears limited, as IOCL has corrected by 23 per cent over 3M.
However, limited triggers cap upside. Therefore, the brokerage upgraded IOCL to 'HOLD' from 'REDUCE'.
The brokerage further highlighted that the company's transparency plummets as IOCL stops GRM disclosure
The company's Q4 EBITDA and PAT beat estimates, driven by likely strong GRMs, inventory gains, and higher crude throughput of 19.7 MMT, up 6% YoY and 2% QoQ, along with domestic sales volume of 23 MMT, which also rose 6% YoY.
Meanwhile, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited reported YoY growth of 3.3% and 2.6%, respectively.
- Q4 petchem EBIT at Rs 12 billion (loss Rs 2 billion YoY).
- LPG losses at Rs 231 billion (Q4: R 24 bn); Rs 36 bn subsidy received.
- Q4 insulated while caution on Q1FY27 maintained; refining margins to stay strong over 1-2 years.
- Indian Oil Corporation has guided for FY27 capex at Rs 327 billion and is currently trading at 6.3x FY28 estimated EPS.
IOCL Q4 results
IOC reported a 56 per cent jump in its March quarter net profit, aided by healthy marketing and refining margins before the full impact of the ongoing war-driven disruption in global energy markets hit earnings, PTI reported.
Standalone net profit in January-March -- the fourth and the final quarter of the 2025-26 fiscal year -- rose to Rs 11,377.51 crore from Rs 7,264.85 crore a year back, the company said in a stock exchange filing.
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, according to PTI.
IOCL dividend
"Board has recommended a final dividend of 12.5% for the year 2025-26, i.e. Rs. 1.25 per equity share of face value of Rs 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. The final dividend would be paid within 30 days from the date of declaration at the AGM. The record date for payment of final dividend would be fixed and intimated in due course," said Indian Oil in an exchange filing.
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(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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