Did IOCL's Q1 net profit really soar by 83% to Rs 6,808 crore?
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Synopsis
Indian Oil Corporation Limited (IOCL) has reported an impressive 83% YoY increase in net profit for Q1 FY26, reaching Rs 6,808 crore. Despite this growth, its share price saw a dip. Discover the major factors influencing these results and their implications for the company's future.
Key Takeaways
- Net profit: Rs 6,808.12 crore for Q1 FY26
- Year-on-year growth: 83% increase
- Revenue from operations: Rs 2,21,849.02 crore
- Operating margin: Improved to 4.61%
- Share price drop: Fell 1.65% post-results
Mumbai, Aug 14 (NationPress) The esteemed Maharatna public sector enterprise Indian Oil Corporation Limited (IOCL) announced an impressive 83% year-on-year (YoY) increase in its consolidated net profit for the April–June quarter (Q1) of FY26 on Thursday.
For Q1 FY26, the net profit stood at Rs 6,808.12 crore, a significant rise from Rs 3,722.63 crore during the same period last fiscal (Q1 FY25), as reported in its filing to the stock exchange.
Nonetheless, this amount fell short of the Rs 8,367.63 crore profit achieved in the previous quarter, March 2025.
Revenue from operations saw a modest increase of 0.9% YoY, reaching Rs 2,21,849.02 crore compared to Rs 2,19,864.34 crore a year prior.
Total expenses for the company in the first quarter amounted to Rs 2,14,830.24 crore, which is lower than Rs 2,16,125.54 crore from the same period last year.
The largest components of the company’s expenses included the cost of materials consumed at Rs 1,09,450.8 crore, stock-in-trade purchases at Rs 47,904.81 crore, excise duties at Rs 29,508.37 crore, and other miscellaneous expenses at Rs 13,031.67 crore.
In terms of operating performance, the earnings before interest, tax, depreciation and amortisation (EBITDA) experienced a robust growth of 32.5%, climbing to Rs 13,850.66 crore from Rs 10,452.51 crore in the previous fiscal year.
The operating margin improved to 4.61%, up from 2.91% a year ago, although it dipped slightly from 4.96% in the previous quarter, as disclosed in the firm’s regulatory filing.
Despite the substantial annual profit growth, IOC’s share price experienced a decline post-results. The stock hit a low of Rs 140 on the Bombay Stock Exchange (BSE), reflecting a decrease of 1.65% from the prior close of Rs 142.40.
Over the last six months, IOC shares have appreciated by 19.49%, yet they remain down 14% over the past year.
Point of View
The impressive profit growth stands out as a beacon of resilience in the public sector amidst fluctuating market conditions. However, the dip in share price suggests concerns among investors regarding future performance. As the national editor, it's crucial to approach these findings with a balanced perspective, recognizing both the achievements and the challenges faced by IOCL.
NationPress
08/10/2025
Frequently Asked Questions
What was IOCL's net profit for Q1 FY26?
IOCL reported a net profit of Rs 6,808.12 crore for Q1 FY26, reflecting an 83% increase year-on-year.
How did IOCL's revenue from operations perform?
Revenue from operations increased by 0.9% year-on-year, reaching Rs 2,21,849.02 crore.
What were the main contributors to IOCL's expenses?
The major contributors to IOCL's expenses included costs of materials, stock purchases, excise duty, and other expenses.
What was the change in IOCL's operating margin?
IOCL's operating margin improved to 4.61% from 2.91% a year earlier.
How did IOCL's share price react after the results?
Despite the profit increase, IOCL's share price fell by 1.65%, reaching a low of Rs 140 on the BSE.
