IOC Q4 Results: Net Profit Jumps 50% to ₹7,265 Crore, Declares ₹3 Dividend

Introduction

Indian Oil Corporation Limited (IOC), India’s largest oil refining and marketing company, has reported impressive results for the fourth quarter of FY2025. The company’s net profit soared by 50% year-on-year, reaching ₹7,265 crore. This outstanding performance highlights IOC’s resilience despite fluctuating global oil prices and market challenges. Along with the strong profit growth, IOC has also declared a ₹3 per share dividend, reflecting its robust financial health and commitment to rewarding its shareholders. Let’s take a deep dive into the key financial highlights, performance metrics, and strategic initiatives that contributed to IOC’s stellar results.

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Key Financial Highlights of IOC Q4 FY2025

• Net Profit: IOC’s net profit surged by an impressive 50%, reaching ₹7,265 crore compared to ₹4,838 crore in Q4 FY2024. This substantial increase can be attributed to a combination of higher refining margins, better operational efficiencies, and favorable inventory gains.

• Revenue from Operations: IOC’s revenue from operations for the quarter stood at ₹2.18 lakh crore, slightly lower than ₹2.20 lakh crore in the same period last year. The marginal drop in revenue can be attributed to lower global oil prices and reduced refining throughput due to maintenance activities.

• Gross Refining Margin (GRM): IOC’s Gross Refining Margin, a key indicator of profitability in the refining business, stood at $7.85 per barrel, compared to $8.39 per barrel in the same quarter last year. Despite the dip, the company managed to maintain a strong margin due to effective cost management and efficient refining operations.

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Dividends and Shareholder Value

In line with its strong financial performance, IOC declared a ₹3 per share dividend for the fourth quarter. The dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM). The dividend announcement is a reflection of IOC’s commitment to providing value to its shareholders, especially in a time when many companies are cautious due to market uncertainties. The dividend payout is expected to boost investor sentiment and attract more retail and institutional investors to IOC’s stock.

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Operational Performance

• Refinery Throughput: IOC’s refinery throughput for Q4 FY2025 was 18.548 million metric tonnes (MMT), up from 18.282 MMT in Q4 FY2024. This increase in throughput reflects IOC’s strong operational efficiency and ability to meet domestic demand for petroleum products.

• Domestic Sales: The company’s domestic sales reached 24.601 MMT, an increase from 23.737 MMT in the same period last year. This growth in sales volume indicates strong demand for petroleum products in India, despite global challenges.

• Exports: IOC’s export sales stood at 1.344 MMT, contributing significantly to its overall sales growth. This shows the company’s strategic push to expand its international market footprint, capitalizing on its high-quality refining capabilities.

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Strategic Initiatives and Future Plans

IOC continues to focus on enhancing its refining capabilities, diversifying its product portfolio, and investing in sustainable energy solutions. A few of the key initiatives include:

• Increased Crude Procurement from Spot Markets: IOC plans to increase its crude procurement from spot markets to 45%, up from 40% last year. This strategic move will allow the company to take advantage of fluctuating crude oil prices and maintain flexibility in sourcing different grades of oil.

• Petrochemical Expansion: To reduce dependency on traditional refining margins, IOC is focusing on expanding its petrochemical business. The company plans to invest up to ₹1 trillion in expanding its petrochemical capacity, which will help increase its revenue streams and overall profitability.

• Green Energy Investments: IOC has been making strides in the renewable energy space by investing in solar energy projects and exploring opportunities in electric vehicle (EV) infrastructure. The shift toward cleaner energy is in line with the company’s long-term vision of becoming a leader in the green energy transition.

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Market Response and Shareholder Sentiment

Following the announcement of its Q4 results, IOC’s stock price saw a positive uptick, closing 0.9% higher at ₹137 on the Bombay Stock Exchange. The strong financial results, coupled with the dividend declaration, have boosted investor confidence in the company. Over the past month, IOC’s stock has risen by 8%, and it has gained 11.5% in the past three months. However, over the last year, the stock is down by 22%, largely due to fluctuations in global oil prices and market volatility.

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Conclusion

Indian Oil Corporation’s Q4 FY2025 results reflect the company’s strong operational performance and strategic initiatives, which have contributed to the 50% growth in net profit. Despite challenges in the global oil market, IOC has managed to outperform expectations, showcasing its resilience and ability to adapt to changing market dynamics. The company’s announcement of a ₹3 per share dividend is another testament to its commitment to providing value to shareholders.

Looking ahead, IOC is well-positioned to continue its growth trajectory, supported by its expansion into petrochemicals, increased refining efficiency, and investments in green energy. As the company continues to diversify and innovate, investors can expect strong financial returns and long-term value creation.