Indian Oil Corporation Limited – Q4 FY26 Results

key financial highlights

• Revenue from Operations:
  • Revenue (Q4 FY26): ₹2,36,899.33 Crore
    • QoQ Change: +0.27%
    • YoY Change: +7.02%
  • Previous Quarter (Q3 FY26): ₹2,36,257.24 Crore
  • Previous Year (Q4 FY25): ₹2,21,360.24 Crore
• Profit After Tax (PAT):
  • PAT (Q4 FY26): ₹14,458.08 Crore
    • QoQ Change: +11.16%
    • YoY Change: +78.00%
  • Previous Quarter (Q3 FY26): ₹13,006.92 Crore
  • Previous Year (Q4 FY25): ₹8,123.64 Crore
• QoQ Performance:
  • Revenue Trend: Revenue remained stable quarter-on-quarter with modest growth.
    
  • Profit Trend: Profitability improved significantly sequentially due to operational efficiency and better segment earnings.

Margin Analysis

Drivers:

• Petroleum products segment profit more than doubled YoY.
• Inventory movement improved versus prior-year quarter.
• Lower impairment and stable employee costs supported margins.
• Finance costs remained elevated at ₹1,880.12 Cr.
• Depreciation and amortization expenses increased materially.

Insight:

• Core operational profitability strengthened substantially despite cost inflation and high capital expenditure intensity.

Segment performance

Segments: Petroleum Products

• Revenue: ₹2,20,218.01 Crore
• Insights:
  • Primary earnings driver with major profitability expansion
  • Segment profit surged to ₹21,664.95 Cr from ₹10,238.90 Cr YoY.
  • Refining and marketing businesses remained the largest contributor.

Segments: Petrochemicals

• Revenue: ₹8,010.80 Crore
• Insights:
  • Recovery visible from prior weak quarter
  • Returned to profitability after losses in previous comparable periods.
  • Indicates recovery in petrochemical spreads.

Segments: Gas

• Revenue: ₹11,377.27 Crore
• Insights:
  • Segment profitability weakened sharply
  • Reported segment loss of ₹1,145.26 Cr.
  • Weak gas economics and pricing pressure impacted profitability.

Segments: Other Business Activities

• Revenue: ₹1,669.86 Crore
• Insights:
  • Includes exploration, explosives, renewable energy.
  • Stable contribution from diversification initiatives.

Segment insight

Business Summary:

IOCL’s earnings profile remains heavily dependent on petroleum products, while petrochemicals are gradually recovering and gas operations remain under pressure.

Key Characteristics:

• Petroleum products contribute dominant revenue and profits.
• Gas business remains volatile.
• Petrochemicals provide diversification support.
• Renewable and exploration businesses remain relatively small.

Earning quality check

Key Drivers:

• Operating cash flow increased sharply to ₹76,142.08 Cr.
• PAT growth significantly exceeded revenue growth.
• Strong working capital improvement from trade payables.
• Higher depreciation indicates ongoing asset expansion.
• Strong contribution from associates and joint ventures.

Interpretations:

• Earnings quality appears healthy due to strong operating cash generation and broad-based operational improvement rather than purely one-off items.

balance sheet Analysis

• Total Assets: ₹5,28,954.96 Cr
• Total Liabilities: ₹3,03,407.85 Cr
• Total Equity: ₹2,25,547.11 Cr

Insight:

• Asset base expanded due to ongoing capital expenditure and project investments.
• Total liabilities reduced YoY, improving leverage profile.
• Equity strengthened significantly through retained earnings.

key risks

• Gas business losses may continue if pricing remains weak.
• High finance costs continue to pressure profitability.
• Large capex commitments increase execution risk.
• Exposure to crude oil price volatility.
• Regulatory intervention risk in fuel pricing.

management strategy signals

Focus Area:

• Expansion of refining and petrochemical capacity.
• Investment in energy transition and renewables.
• Strengthening operational efficiency.
• Continued infrastructure and pipeline expansion.
• Diversification into gas and alternative energy.

Financial metrics table

Quarterly Performance Context