IOC shares jump 3% after Q4 net profit rises 78% YoY. Here’s what Motilal Oswal says

Shares of Indian Oil Corporation (IOC) rose 3% to Rs 135.63 apiece on the NSE during Tuesday’s trade after the oil marketing company reported a consolidated net profit of Rs 14,458 crore for the January–March quarter of FY26. This marks a 78% jump from Rs 8,124 crore in the same period last year.

Revenue from operations rose 7% YoY to Rs 2.37 lakh crore during the quarter under review, compared with Rs 2.21 lakh crore in the corresponding quarter of the previous financial year.

IOC announced the Q4 earnings in the post-market hours of Monday.

Along with the Q4 results, IOC also said that its board of directors has recommended a final dividend of Rs 1.25 per equity share, subject to approval of the shareholders at its upcoming Annual General Meeting (AGM). The final dividend will be paid within 30 days from the date of declaration. The record date to determine the eligibility of shareholders for payment of the final dividend would be fixed and intimated in due course.

Sequentially, IOC’s net profit grew 11% quarter-on-quarter (QoQ) from 13,007 crore in Q3 FY26, while the topline saw a marginal uptick of 0.27% from Rs 2.36 lakh crore in the previous quarter.

Middle East war impact on IOC

The oil marketing company, in its exchange filing, highlighted that the conflict in the Middle East region, which began in February, led to supply uncertainties and subsequent volatility in the price of crude oil and petroleum products in the international market. However, the profitability for the year 2025-26 was largely insulated from the impact of these developments due to inventory procured at normal prices before the conflict, it added.

IOC’s profit margin improved to 6.41% in Q4 FY26 versus 5.72% in Q3 and 3.78% in Q4 FY25, while operating margin stood at 8.40% in Q4 FY26 versus 7.94% in Q3 FY26 and 4.96% in Q4 FY25.

Petrol, diesel prices hiked

Notably, the stock is also reacting to the latest fuel price hike announced in India. The government announced the second petrol and diesel price hikes in less than a week, increasing prices by nearly 90 paise per litre. The back-to-back price hike will likely provide some relief to the OMCs, who have been facing mounting financial pressure as global crude prices remain elevated due to disruption caused by the ongoing conflict in West Asia, and the closure of the Strait of Hormuz, a narrow 33-kilometre waterway connecting the Persian Gulf with the Gulf of Oman that handles over 20% of the world’s daily oil and gas shipments.

After crossing the crucial $100 per barrel mark in March, oil prices have mostly sustained above the level this year so far. On Tuesday morning, Brent crude was trading above $110 per barrel while WTI Crude was hovering near $108 per barrel.

Motilal Oswal on IOC share price

Motilal Oswal remained ‘Neutral’ on the shares of IOC. It highlighted that the company’s EBITDA exceeded its estimate by 30%. Marketing and refining throughput was in line with its expectations.

The domestic brokerage further noted that IOC’s reported profit was 27% above its estimate. IOC’s standalone net debt reduced to Rs 665 billion as of March 31, 2026, from Rs 1,339 billion in the same time last year. Motilal further said that this is a positive for the stock.

IOC share price

IOC shares have dropped 4% in one week and 10% in one month, falling more than 20% in 2026 so far as prolonged closure of the Strait of Hormuz sparked a skyrocketing rally in oil prices, spooking investors. The shares of the company have fallen 9% in one year.

The shares of the oil marketing company jumped nearly 3% on Tuesday after the release of the results, to trade at Rs 135.63 apiece on NSE in the morning.

Also read: Adani Group stocks rise up to 3% after US Justice Department drops all charges against Gautam Adani

In the longer term, IOC shares have gained 53% in three years and 85% in five years. The company has a market capitalisation of more than Rs 1.86 lakh crore. The stock’s P/E ratio currently stands at 5.54.

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