IOC Q4FY26 profit jumps 56% as FY26 hits record earnings

What IOC reported for the March quarter

Indian Oil Corporation Ltd (IOC) reported a sharp year-on-year rise in profit for the January to March quarter of FY26, supported by healthy marketing and refining margins. The company said the improvement came before the full impact of war-driven disruption in global energy markets hit earnings. The update was disclosed through a stock exchange filing.

Q4FY26 standalone profit: up 56% year-on-year

On a standalone basis, IOC’s net profit for Q4FY26 rose 56% to ₹11,377.51 crore, compared with ₹7,264.85 crore in the same quarter last year. The quarter was described as a record profit even though the company faced losses in March on selling petrol, diesel, and cooking gas (LPG) below cost. IOC said it, along with other state-owned fuel retailers, absorbed volatility in international markets to insulate the domestic market.

Sequential trend: profit lower than the previous quarter

While the March-quarter profit was higher year-on-year, another report highlighted sequential softness. IOC’s Q4FY26 standalone net profit of ₹11,377.51 crore was lower than ₹12,125.86 crore reported in the previous quarter. The same report said operating income (earnings before interest and taxes) fell 1% to ₹20,715.56 crore from ₹20,823.97 crore, and margins contracted to 10% from 10.2% quarter-on-quarter.

FY26 net profit hits a record level

For the full financial year FY26, IOC posted a record standalone net profit of ₹36,802.42 crore. This was more than double the ₹12,961.57 crore reported in the previous year. The company attributed FY26 performance to strong operations and record activity across multiple segments.

Consolidated financial snapshot for the quarter

IOC’s audited consolidated results (for the quarter and year ended March 31, 2026) also indicated strong year-on-year gains for Q4FY26. Consolidated total revenue for the quarter was ₹210,064.22 crore, compared with ₹196,508.13 crore in the year-ago quarter. Consolidated operating profit for the quarter stood at ₹24,803.80 crore, while consolidated net profit was ₹14,458.08 crore.

Operations: record crude and pipeline throughput

IOC said FY26 saw strong operational performance, with record highs across refining, pipelines, and marketing activities. A separate report noted record crude throughput of 75.4 million tonnes. It also reported pipeline throughput of 105.3 million tonnes, underscoring higher transportation volumes during the year.

Pricing actions and under-recoveries in March

A key point in IOC’s quarter narrative was the impact of retail price actions during March. The company indicated it suffered large losses on selling petrol, diesel, and LPG below cost in that month. This reflected the approach taken by state-run fuel retailers to cushion domestic consumers from volatility that followed the start of the West Asia conflict.

Dividend: ₹1.25 per share, distribution of ₹1,765 crore

IOC announced a dividend of ₹1.25 per equity share for FY26 even as profit slipped sequentially. The dividend was described as the lowest since ₹1.5 in August 2021. The company announced a total distribution of nearly ₹1,765 crore to shareholders.

Why the result matters for oil marketing companies

IOC’s numbers highlight the sensitivity of oil marketing company earnings to refining and marketing margins, along with price controls and timing effects. The March-quarter outcome also shows how under-recoveries on petrol, diesel, and LPG can coexist with a strong year-on-year profit rise when other parts of the quarter remain supportive. The audited consolidated table points to year-on-year improvement across revenue, operating profit, and profit after tax in Q4FY26.

Conclusion

IOC ended FY26 with a record standalone net profit of ₹36,802.42 crore and a Q4FY26 standalone net profit of ₹11,377.51 crore, up 56% year-on-year. The company also reported record operational throughput in crude processing and pipelines during the year. The next focus for investors is how margins and retail pricing actions evolve as global energy markets react to ongoing geopolitical disruption.