Indian Oil Corporation Share Price Falls After Q1 Results Despite 83% Profit Surge

Market Performance

Indian Oil Corporation (IOC) shares slipped on Thursday, August 14, after the company posted its Q1 FY26 results. The stock hit an intraday low of ₹140 on the BSE, down 1.65% from the previous close of ₹142.40.

Despite strong profit growth, the market reaction was muted. Over the last six months, IOC shares have gained 19.49%, but are still down 14% year-on-year.

Q1 FY26 Results Highlights

Indian Oil Corporation reported a sharp jump in profit for the April–June 2025 quarter, even as revenue growth remained flat.

Financial performance:

• Net Profit (Consolidated): ₹6,808.12 crore, up 83% YoY from ₹3,722.63 crore
• Sequentially: Down from ₹8,367.63 crore in Q4 FY25
• Revenue from Operations: ₹2,21,849.02 crore, up 0.9% YoY from ₹2,19,864.34 crore
• EBITDA: ₹13,850.66 crore, up 32.5% YoY from ₹10,452.51 crore
• EBITDA Margin: Improved to 4.61% from 2.91% YoY (slightly lower than 4.96% in the previous quarter)
• Standalone Net Profit: ₹5,688.60 crore vs ₹2,643.18 crore last year

Operational Performance

• Gross Refining Margin (GRM): $2.15 per barrel in Q1 FY26 vs $6.39 per barrel last year
• Core GRM (after inventory loss adjustment): $6.91 per barrel

IOC’s refining margins declined compared to last year, impacting operational profitability, even though overall earnings saw strong growth.

Share Price Reaction

The Indian Oil Corporation share price remained under pressure for most of the trading session following the Q1 results. The decline was attributed to profit growth being lower on a sequential basis and refining margins coming under strain.

Summary

Indian Oil Corporation delivered a strong 83% YoY profit growth in Q1 FY26, supported by improved operating margins and higher EBITDA. However, a flat revenue growth and weaker refining margins compared to last year weighed on investor sentiment, leading to a fall in IOC’s share price.