IOC profit jumps 81.37% as margin expansion continues
Operating margin reached 11.91% after costs grew slower than revenue, but the tax rate rose 6.62 percentage points year on year.
Filed 28 May 2026, 12:03 IST · after market close · Indian Oil Corporation Ltd (IOC)
Key takeaways
- Consolidated net profit rose 81.37% year on year as revenue grew 6.67% while expenses increased only 1.80%.
- Operating margin expanded 4.21 percentage points year on year to 11.91%, marking its third straight quarterly increase.
- The stock gained 8.02% after five sessions, a larger move than its 1.73% median absolute reaction across eight recent results.
Price around the results
Profit growth outpaced revenue in Q4FY26
Consolidated revenue grew 6.67% year on year to Rs 208,289.26 cr, while expenses rose only 1.80%. That operating leverage lifted operating profit 65.04% and net profit 81.37% to Rs 15,176.08 cr. Sequentially, revenue increased 1.53% and net profit rose 12.40%.
Margin gains continued, but tax reduced profit conversion
Operating margin widened 4.21 percentage points year on year because expenses grew slower than revenue; it also improved 0.82 percentage points sequentially. Interest expense fell 13.67% year on year, partly supporting pre-tax profit growth. The tax rate rose 6.62 percentage points to 23.32%, limiting net-profit growth relative to the 97.03% increase in pre-tax profit, while other income contributed 12.25% of pre-tax profit.
IOC remains below the reported Energy peer median
Operating margin has risen from 6.90% in Q1FY26 to 9.09%, 11.09% and 11.91% over the following three quarters, its third consecutive quarterly increase. Even so, IOC's margin was 2.68 percentage points below the 14.59% median for 15 Energy peers that had reported the quarter. It ranked seventh from the bottom on this measure.
Market reaction was positive but recent history is mixed
The stock rose 2.42% on the reaction day and was up 8.02% after five sessions. That exceeded the 1.73% median absolute move across eight recent results, although the historical direction was mixed, with three rises and five declines.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,08,289 cr | ₹2,05,157 cr | +1.53% | +6.67% |
| Other income | ₹2,424 cr | ₹1,627 cr | +49.01% | +59.65% |
| Expenses | ₹1,83,485 cr | ₹1,82,412 cr | +0.59% | +1.80% |
| Operating profit | ₹24,804 cr | ₹22,745 cr | +9.05% | +65.04% |
| Operating margin (%) | 11.91% | 11.09% | — | — |
| Interest | ₹1,880 cr | ₹2,088 cr | -9.96% | -13.67% |
| Depreciation | ₹5,557 cr | ₹4,457 cr | +24.66% | +28.47% |
| Profit before tax | ₹19,791 cr | ₹17,827 cr | +11.02% | +97.03% |
| Tax | ₹4,615 cr | ₹4,325 cr | +6.71% | +175.19% |
| Net profit | ₹15,176 cr | ₹13,502 cr | +12.40% | +81.37% |
| EPS (₹) | ₹10.50 | ₹9.44 | +11.23% | +77.97% |
Operating margin of 11.91% compares with a Energy sector median of 14.59% across 15 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.42% | +2.56% |
| Next session | +4.73% | — |
| 5 sessions | +8.02% | +6.90% |
| 15 sessions | +3.85% | — |
| 30 sessions | +7.44% | — |
Volume on the results session was 1.71× its 20-day average.
What to watch
- Whether operating margin holds above 11.91% after three consecutive quarterly increases.
- Whether the tax rate stays near 23.32% rather than returning to the 16.70% level of Q4FY25.
- Whether other income remains around 12.25% of pre-tax profit.