Indian Oil Corporation Ltd (IOC), India’s largest oil refining and fuel marketing company, has declared a second interim dividend for the financial year 2025–26. The board approved the payout at its meeting on March 6, 2026, underlining the company’s robust financial position and its focus on returning value to shareholders.
Market Snapshot
Following the announcement, IOC shares slipped 1.9%, closing at ₹168.25 on BSE, amid typical market fluctuations in the PSU sector.
Details of the Dividend
IOC has fixed a 20% interim dividend, which translates to ₹2 for each ₹10 equity share. The payment will reach eligible shareholders by April 5, 2026.
Key highlights for investors:
- Dividend Type: 2nd Interim Dividend for FY26
- Amount: ₹2 per equity share (face value ₹10)
- Record Date: March 12, 2026
- Payment Date: On or before April 5, 2026
Only shareholders holding shares on the record date will be eligible. Buying shares after the ex-dividend date—one trading day before the record date—won’t qualify for this payout.
About Indian Oil Corporation
IOC is a Maharatna public sector enterprise, granting it greater autonomy to invest in large projects without government approvals. Its status reflects consistent operational excellence and a strong presence in India’s energy market.
Understanding Dividends
A dividend is money a company pays to its shareholders from the profits it has earned, as a way of sharing its financial success. Companies pay dividends in cash or, occasionally, as bonus shares. Interim dividends, like IOC’s current payout, are issued during the financial year, when companies have surplus funds beyond operational and debt requirements.
Tax Guidelines for the Dividend
IOC has issued guidance on TDS (Tax Deducted at Source) for this interim dividend, in line with the Income-tax Act, 1961:
- Residents with a valid PAN: TDS at 10% or as per government notification.
- PAN not provided or invalid/unlinked with Aadhaar: TDS at 20%.
- No TDS if total dividend in FY26 is ₹10,000 or less.
Shareholders wishing to claim a lower TDS rate or exemption should submit the necessary documents to KFin Technologies, IOC’s registrar, by March 12, 2026, which is also the record date.
Summary
IOC’s second interim dividend reinforces its commitment to shareholders while highlighting its financial stability. With a record date on March 12, 2026 and payment by April 5, 2026, investors now have a clear timeline to receive this payout.
This announcement demonstrates IOC’s continuing strength in India’s oil sector and its consistent approach toward rewarding shareholders.
Source: Livemint
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