New Delhi: Indian Oil Corporation Limited (IOCL), India’s largest commercial oil and gas enterprise, reported a strong financial performance for the fourth quarter and full financial year ended March 31, 2026. The company posted a sharp rise in standalone net profit, improved operational performance, lower borrowings, and announced a final dividend for shareholders.
The state-run oil major also highlighted growth in fuel sales, petrochemical business, and gas volumes despite global geopolitical uncertainties and crude oil price volatility.
IOCL Q4 FY26 Financial Highlights
IOCL reported a standalone net profit of ₹11,377.51 crore for Q4 FY26, registering a 56% year-on-year growth compared to ₹7,264.85 crore in the corresponding quarter of FY25.
Key Standalone Numbers for Q4 FY26
- Net Profit: ₹11,377.51 crore
- Profit Before Tax (PBT): ₹15,322.37 crore
- Total Income: ₹2,34,485.22 crore
- Revenue from Operations: ₹2,32,855.33 crore
- Earnings Per Share (EPS): ₹8.26 per share
The robust quarterly performance was supported by strong refining and marketing operations along with government LPG compensation support.
IOCL FY26 Full-Year Performance
For the entire financial year FY26, IOCL recorded a massive jump in profitability and revenue.
Standalone FY26 Performance
- Net Profit: ₹36,802.42 crore
- FY25 Net Profit: ₹12,961.57 crore
- Revenue from Operations: ₹8,86,224.41 crore
- FY25 Revenue: ₹8,45,512.61 crore
- Earnings Per Share (EPS): ₹26.72
- FY25 EPS: ₹9.41
The company’s annual earnings growth reflects improved operational efficiencies, healthy demand growth, and better refining margins.
IOCL Announces Final Dividend for FY26
The Board of Directors of IOCL recommended a final dividend of 12.5%, equivalent to ₹1.25 per equity share with a face value of ₹10 each.
Dividend Details
- Dividend Amount: ₹1.25 per share
- Type: Final Dividend
- Approval Status: Subject to shareholder approval at AGM
- Payment Timeline: Within 30 days from declaration at the Annual General Meeting
- Record Date: To be announced separately
The dividend announcement comes as a positive development for shareholders following the company’s strong earnings performance.
Asset Quality and Financial Position Improve
IOCL strengthened its balance sheet during FY26 with reduced debt levels and improved profitability metrics.
Key Financial Ratios (as of March 31, 2026)
- Net Worth: ₹2,04,544.34 crore
- Debt-Equity Ratio: 0.54 times
- Current Ratio: 0.70 times
- Net Profit Margin: 4.15%
The company’s total borrowings declined by 18% to ₹1,10,668 crore from ₹1,34,466 crore a year earlier, reflecting improved financial discipline.
Business Operations Witness Strong Growth
IOCL reported healthy growth across petroleum, petrochemicals, gas, and export segments during FY26.
Operational Performance
- Petroleum Sales: 88.967 MMT
- Up 5% from 84.963 MMT
- Petrochemical Sales: 3.294 MMT
- Up 4% from 3.155 MMT
- Gas Sales: 7.276 MMT
- Up 6% from 6.892 MMT
- Export Sales: 5.213 MMT
- Up 6% from 4.917 MMT
The company also managed targeted revenue expenses efficiently, which increased only 2.5% year-on-year despite higher operational scale and geopolitical challenges.
LPG Compensation Boosts Revenue
The Government approved compensation of ₹14,486 crore for under-recoveries incurred on domestic LPG sales.
IOCL recognized ₹6,035.85 crore as revenue for the period between November 2025 and March 2026, which supported overall profitability during the quarter.
Impact of Middle East Conflict on Operations
The company stated that geopolitical tensions and conflict in the Middle East during late February 2026 caused volatility in crude oil prices. However, IOCL’s profitability remained largely protected due to inventory procured earlier at normal prices.
As of March 31, 2026:
- 3 crude oil shipments worth ₹5,411.83 crore
- 5 LPG shipments worth ₹618.64 crore
were awaiting clearance in the Arab Gulf/Persian Gulf region.
IOCL confirmed that all five LPG shipments had been received by May 18, 2026.
IOCL Records Impairment Losses
During FY26, the company recognized significant impairment losses including:
- ₹1,212.42 crore related to non-fossil/off-gas based fuel production facilities
- ₹1,219.57 crore against investment in IndOil Global B.V.
These impairments were reflected in the company’s audited financial statements.
New Sustainable Aviation Fuel Project Approved
IOCL’s board also approved the formation of a 50:50 joint venture with M11 Energy Transition Private Ltd to establish a 100 KTPA HEFA-based Sustainable Aviation Fuel (SAF) project at Paradip.
Project Highlights
- Estimated Cost: ₹1,063.60 crore (±30%)
- Location: Paradip
- Technology: HEFA-based Sustainable Aviation Fuel
The project remains subject to approvals from NITI Aayog, DIPAM, and other regulatory authorities.
Consolidated Q4 FY26 Results
On a consolidated basis, including subsidiaries, associates, and joint ventures:
- Consolidated Net Profit: ₹15,176.08 crore
- Net Profit Attributable to Parent Equity Holders: ₹14,458.08 crore
This indicates strong contributions from the broader IOCL group ecosystem.
Audit Committee and Board Meeting Update
IOCL informed that its Audit Committee was discontinued from March 28, 2026, due to the non-availability of Independent Directors.
The audited financial results were directly reviewed and approved by the Board of Directors during its meeting held on May 18, 2026. The board meeting commenced at 4:00 PM and concluded at 9:30 PM.
About IOCL
Indian Oil Corporation Limited is a Maharatna Central Public Sector Enterprise under the Ministry of Petroleum and Natural Gas. It is India’s flagship national oil company with operations across the entire hydrocarbon value chain, including refining, pipeline transportation, fuel marketing, petrochemicals, natural gas, and exploration & production. The company plays a major role in meeting India’s energy demand and continues to expand into cleaner and sustainable energy solutions.
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