Indian Oil Corporation (IOC) shares climbed nearly 3% in anticipation of its upcoming quarterly results announcement. Market expectations, as reflected in a CNBC-TV18 poll, suggest a mixed but potentially positive performance for the oil giant.

Key Financial Projections

Factors Driving Performance

The expected improvement in EBITDA is attributed to two main factors:

1. Better refining margins: This suggests more efficient operations in IOC's core business.
2. Lower under-recoveries in LPG sales: This improvement is due to:
   • Higher cylinder prices
   • Lower propane costs

These factors are expected to contribute to the projected expansion in operating profit margins by 90 basis points, reaching 7.4%.

Stock Performance

IOC's stock is currently trading at ₹154.33, marking a significant year-to-date increase of 12.6%. The recent 3% gain ahead of the results announcement indicates positive investor sentiment surrounding the company's expected performance.

Market Implications

The anticipated results, if realized, could signal a robust quarter for Indian Oil Corporation despite a projected decline in revenue. The expected improvements in profitability metrics suggest that the company may be successfully navigating challenges in the oil and gas sector, potentially through operational efficiencies and strategic pricing decisions.

Investors and market watchers will be keenly awaiting the official announcement to confirm these projections and assess their implications for IOC's future performance and stock valuation.

Indian Oil Corporation Limited (IOCL), one of India's leading oil and gas companies, has received a significant tax relief in a recent income tax dispute. The Commissioner of Income-tax (Appeals) [CIT(A)] has partially allowed the company's appeal, resulting in a substantial reduction in its tax liability for the Assessment Year 2016-17.

Key Highlights of the Tax Relief

• Total Relief Amount: Rs 1,102.91 crores
• Original Disputed Amount: Rs 1,194.07 crores (including tax and interest)
• Remaining Disputed Amount: Rs 91.16 crores
• Appeal Date: October 23, 2025

Details of the Tax Dispute

The tax dispute stemmed from various disallowances in the assessment order for the Assessment Year 2016-17. IOCL had initially disclosed this ongoing income tax dispute on August 14, 2023. The case was pending adjudication at the first appellate level, i.e., the Commissioner of Income-tax (Appeals).

Outcome of the Appeal

The CIT(A)'s decision has provided significant relief to Indian Oil Corporation Limited. Here's a breakdown of the appeal outcome:

Next Steps

While the company has received substantial relief, it plans to contest the remaining disputed tax amount of Rs 91.16 crores before the Income-tax Appellate Tribunal, which is a higher forum for tax-related appeals.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Indian Oil Corporation Limited has duly informed the stock exchanges about this development. The company's disclosure adheres to the regulatory requirements for keeping investors and stakeholders informed about material events affecting the company.

This favorable outcome in the tax appeal is likely to have a positive impact on Indian Oil Corporation Limited's financial position, reducing its tax liabilities significantly for the assessment year in question. However, the final resolution of the remaining disputed amount will depend on the decision of the Income-tax Appellate Tribunal in due course.