Indian Oil Corporation (IOC) has announced its financial results for the quarter ended September 30, 2025, significantly outperforming market expectations.

Key Financial Highlights

Half-Year Performance

For the six-month period ended September 30, 2025:

• Net profit stood at ₹13,299.05 crore, compared to ₹2,823.19 crore in the previous year.
• The average gross refining margin improved to $6.32 per barrel, up from $4.08 per barrel in the corresponding period of 2024.

LPG Under-recoveries Compensation

The Ministry of Petroleum and Natural Gas has conveyed compensation of ₹14,486 crore towards LPG under-recoveries. This amount is set to be disbursed in 12 monthly installments starting November 2025.

Market Reaction

Prior to the results announcement, IOC shares had climbed nearly 3% in anticipation of a strong performance. The actual results have significantly exceeded the market expectations outlined in a CNBC-TV18 poll, which had projected:

• Revenue of ₹1.77 lakh crore
• EBITDA of ₹13,124 crore
• Net Profit of ₹6,353 crore
• Gross Refining Margins of $6.5 per barrel

Factors Driving Performance

The substantial improvement in IOC's financial performance can be attributed to several factors:

1. Enhanced refining margins: The company's core business operations have shown increased efficiency.
2. Reduced under-recoveries in LPG sales: This improvement is likely due to:
   • Higher cylinder prices
   • Lower propane costs
3. Operational efficiencies: The significant increase in net profit despite a modest rise in revenue suggests successful cost management and operational optimization.

Market Implications

The reported results demonstrate a robust quarter for Indian Oil Corporation, significantly surpassing projections. The dramatic increase in profitability metrics indicates that the company has successfully navigated challenges in the oil and gas sector, potentially through a combination of operational efficiencies, strategic pricing decisions, and favorable market conditions.

Investors and market analysts may reassess their outlook on IOC's future performance and stock valuation in light of these results. The stock, which had already seen a year-to-date increase of 12.6% prior to this announcement, may experience further positive momentum in response to these financial figures.

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.