Indian Oil Corp shares hit 52-week high after multifold jump in Q3 profit

Shares of Indian Oil Corporation Ltd. (IOCL) rose nearly 3 per cent to hit a 52-week high on Friday after it reported a "big beat" in the December quarter of the current financial year (Q3-FY26).

 

The company's stock rose as much as 2.92 per cent during the day to ₹180.9 per share, the highest level since October 1, 2024. The stock pared gains to trade 0.5 per cent higher at ₹176.5 apiece, compared to a 0.54 per cent decline in Nifty 50 as of 10:43 AM. 

 

Shares of the company rose for the fifth straight session and currently trade at 1.1 times the average 30-day trading volume, according to Bloomberg. The counter has risen 5.5 per cent this year, compared to a 2 per cent decline in the benchmark Nifty 50. IOCL has a total market capitalisation of ₹2.48 trillion.   READ LATEST STOCK MARKET UPDATES LIVE

IOCL Q3 results 

Indian Oil Corp reported a six-times jump in consolidated net profit to ₹13,502 crore for Q3 on the back of improved gross refining margins (GRMs) and subdued crude oil prices. The company’s net profit stood at ₹2,147 crore in the corresponding quarter of the last financial year.

 

Indian Oil’s revenue from operations rose 7.7 per cent to ₹2.36 lakh crore during the December quarter. For the April-December period, IOCL’s average GRM more than doubled to $8.41 per barrel, compared with $3.69 a barrel in the same period last year. The refiner’s under-recovery on the sale of LPG cylinders stood at ₹24,318 crore at the end of December 2025.

Analysts on IOCL earnings 

Antique Stock Broking said IOC delivered a strong Q3 earnings beat, driven by higher-than-expected GRMs. Following the performance, the brokerage raised its FY26 Ebitda estimate by 9.8 per cent, with GRM assumptions revised upward by 27 per cent. It broadly retained its FY27-FY28 estimates but cut FY26-FY28 net debt estimates by 4-6 per cent to reflect lower reported debt.

 

The brokerage maintained its 'Buy' rating on the stock and revised the target price to ₹202 from ₹197. The brokerage added that IOCL’s refining and petrochemical expansions, along with its Sprint cost-efficiency programme, have created multiple earnings levers. With crude oil prices expected to average around $65 per barrel, fundamentals remain supportive for GRMs and marketing margins, which are currently around ₹5 per litre.  ALSO READ | Nykaa rises 4% to 1-mth high on Q3 result; analysts hike target price 

Motilal Oswal said Indian Oil Corp's Ebitda for the third quarter of FY26 came in 36 per cent above its estimate at ₹21,600 crore, driven by higher-than-expected gross refining margins.

 

However, the brokerage said it continues to prefer Hindustan Petroleum Corporation over IOCL, citing HPCL’s higher exposure to the marketing segment, superior dividend yield and stabilisation of multiple mega projects over the next 12 months, which should provide a meaningful boost to earnings.

 

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