Indian Oil Corporation Limited Earnings Summary — Q4 FY2026
Indian Oil Corporation (IOC) Reports Record Quarterly Profit Driven by Strong Operating Margins
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 4 consecutive quarters.
- Revenue of ₹2.66 Lakh Cr is 38.5% higher year-on-year.
- Revenue has compounded at 13.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹-1,631 Cr is 123.9% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 80.4% annualised across the period.
- Operating margin stands at 1.5% in Q1 FY2027.
- Operating margin compressed by 538 bps year-on-year.
- Over the last two years operating margin has contracted by 360 bps.
- PBT margin is -0.3%.
- Expenses grew 46.5% against revenue growth of 38.5%.
- Operating profit of ₹4,062 Cr is 69.4% lower year-on-year.
- Operating leverage has been under pressure recently.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 44/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 2,66,407 | 2,08,289 | 2,05,157 | 1,78,628 | 1,92,341 | 1,95,270 | 1,94,014 | 1,74,976 | 1,93,845 | 1,98,650 |
| Expenses | Accelerating | 2,62,345 | 1,83,485 | 1,82,412 | 1,62,383 | 1,79,073 | 1,80,241 | 1,86,442 | 1,71,509 | 1,83,923 | 1,86,675 |
| Operating Profit | Volatile | 4,062 | 24,804 | 22,745 | 16,245 | 13,267 | 15,029 | 7,573 | 3,467 | 9,921 | 11,975 |
| Operating Margin | Volatile | 1.5% | 11.9% | 11.1% | 9.1% | 6.9% | 7.7% | 3.9% | 2.0% | 5.1% | 6.0% |
| Other Income | Volatile | 1,143 | 2,424 | 1,627 | 1,356 | 1,732 | 1,519 | 1,936 | 2,556 | 1,102 | 1,686 |
| Interest | Stable | 1,730 | 1,880 | 2,088 | 2,270 | 2,070 | 2,178 | 2,458 | 2,546 | 2,080 | 2,147 |
| Depreciation | Stable | 4,408 | 5,557 | 4,457 | 4,227 | 4,179 | 4,325 | 4,284 | 4,065 | 4,103 | 4,094 |
| Profit Before Tax | Volatile | -933 | 19,791 | 17,827 | 11,104 | 8,750 | 10,045 | 2,766 | -589 | 4,841 | 7,420 |
| Tax | Volatile | 209 | 4,615 | 4,325 | 2,913 | 1,942 | 1,677 | 619 | -140 | 1,118 | 1,932 |
| Net Profit | Volatile | -1,631 | 14,458 | 13,007 | 7,818 | 6,814 | 8,124 | 2,115 | -170 | 3,528 | 5,149 |
| Net Margin | Volatile | -0.6% | 6.9% | 6.3% | 4.4% | 3.5% | 4.2% | 1.1% | -0.1% | 1.8% | 2.6% |
Key Takeaways
- IOC achieved a record consolidated net profit of ₹15,176 crore in Q4 FY2026, marking an 81% year-on-year increase.
- Operating margins expanded to 12% in the latest quarter, up significantly from 8% in the same quarter last year.
- Quarterly revenue saw a healthy sequential growth to ₹208,289 crore, reflecting strong throughput and volume sales.
- The company demonstrated excellent cost control as expenses rose only marginally (0.6%) despite a 1.5% revenue increase QoQ.
- Interest costs declined by 10% sequentially to ₹1,880 crore, aiding the margin expansion in the fourth quarter.
- Depreciation charges spiked to ₹5,557 crore this quarter, likely reflecting the commissioning of new infrastructure assets.
- IOC maintains its dominant market position with 42% of the POL market share and 31% of India's refining capacity.
Management Guidance
Management remains focused on maintaining energy security while navigating the long-term transition to green hydrogen and sustainable energy solutions.
Sentiment Shift
Improving
Earnings have recovered sharply from the volatility of FY2025, with consistent QoQ improvement in OPM and profitability over the last four quarters.
Outlook
The outlook remains positive as refining margins stabilize and marketing margins recover. While high CAPEX for green energy transitions persists, the current profitability levels and debt reduction provide a strong cushion for the next fiscal year.
From the Annual Report (Key Quotes)
“Indian Oil is the dominant player in India's hydrocarbon value chain, holding a 31% share of refining capacity.”
“The focus remains on energy security and the long-term transition to green hydrogen.”
“Performance is sensitive to global crude prices and government-regulated marketing margins.”
Official Quarterly Documents
This summary is AI-generated from Indian Oil Corporation Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.