Indian Oil share climbs after strong Q4 show; UBS keeps ‘Neutral’ with THIS target

IOC share price target: Shares of Indian Oil Corporation (IOC) rose nearly 3 per cent in early trade on Tuesday, May 19, after the state-run oil refiner reported a sharp rise in its March quarter earnings and announced a final dividend for shareholders.

IOC share price

At 10:11 am, Indian Oil shares were trading 2.31 per cent higher at Rs 134.86 on the NSE, compared with the previous close of Rs 131.81.

The company posted a 78 per cent year-on-year (YoY) rise in consolidated net profit for the quarter ended March 2026. Profit attributable to owners stood at Rs 14,458 crore in Q4FY26, against Rs 8,123 crore in the year-ago period, according to the company’s exchange filing.

Revenue from core operations also improved during the quarter. Indian Oil’s revenue rose 7 per cent to more than Rs 2.36 lakh crore, compared with around Rs 2.06 lakh crore in the same quarter last year.

Strong refining, marketing margins support earnings

The earnings growth came despite losses on the sale of petrol, diesel and other fuel products amid elevated market prices. However, stronger refining and marketing margins helped offset the pressure.

Indian Oil said operational performance across business segments and healthy inventory gains also supported profitability during the quarter.

The company’s operating margin improved by 344 basis points to 8.4 per cent in Q4FY26, from 4.96 per cent a year ago. Net profit margin also rose to 6.41 per cent from 3.78 per cent in the corresponding period last year.

Petroleum, petrochemical businesses aid revenue growth

Revenue from the petroleum products business rose 6.8 per cent YoY to Rs 2.20 lakh crore during the quarter.

The petrochemicals segment reported a 10 per cent rise in revenue to Rs 8,010 crore, compared with Rs 7,225 crore a year ago.

Meanwhile, revenue from the natural gas business increased 1.6 per cent to Rs 11,377 crore.

Indian Oil announces SAF joint venture

Indian Oil also announced a new clean energy project during the earnings announcement.

The company said it will form a 50:50 joint venture with M11 Energy Transition Pvt. Ltd. to set up a 100 KTPA HEFA-based Sustainable Aviation Fuel project at Paradip.

The proposed project is expected to involve an investment of around Rs 1,063.60 crore, subject to regulatory approvals.

Final dividend of Rs 1.25 per share announced

Indian Oil’s board has recommended a final dividend of Rs 1.25 per equity share for FY26, subject to shareholder approval at the upcoming annual general meeting (AGM).

“The 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,” the company said in its filing.

The company is yet to announce the official record date for the dividend. Once approved at the AGM, the payout will be made within 30 days of the meeting.

IOC share price target

Meanwhile, UBS maintained its “Neutral” rating on Indian Oil with a target price of Rs 175 per share.