Indian Oil Corporation shares declined 2.05% to trade at ₹155.79 on Friday, January 23, 2026, at 3:20 pm. The oil major is included as one of the stocks in the benchmark NIFTY NEXT 50 index, reflecting its significant market presence in India's energy sector.

Annual Financial Performance Shows Mixed Results

The company's annual financial performance reveals contrasting trends across different periods. The consolidated results show notable variations in profitability over the past five years.

The annual revenue for March 2025 was ₹758,105 crores compared to ₹776,351 crores in March 2024, representing a decline of 2.35%. More significantly, the net profit for March 2025 stood at ₹12,028 crores, a substantial decrease from ₹41,615 crores in March 2024.

Quarterly Performance Demonstrates Recovery Trend

The quarterly financial data presents a more encouraging picture, showing the company's operational resilience across recent quarters.

The consolidated revenue for the quarter ending September 2025 was ₹178,628.15 crores, while the net profit was ₹7,479.57 crores. This represents a significant improvement from the loss of ₹1,123 crores reported in September 2024.

Key Financial Ratios Reflect Earnings Impact

The company's key financial ratios demonstrate the impact of reduced profitability on shareholder returns and valuation metrics.

The basic and diluted earnings per share dropped significantly from ₹30.30 in March 2024 to ₹9.87 in March 2025, reflecting the substantial decline in net profitability.

Upcoming Corporate Developments

Indian Oil Corporation has several important corporate developments scheduled in the near term. The board of directors is scheduled to meet on February 5, 2026, to consider unaudited financial results for the quarter ended December 31, 2025.

Regarding dividend distributions, the company announced:

• An interim dividend of ₹5.00 per share, effective December 18, 2025
• A final dividend of ₹3.00 per share, effective August 8, 2025

The company had previously announced a bonus issue on May 17, 2022, with a bonus ratio of 1:2, and the ex-bonus date was June 30, 2022.

Current Market Position

Indian Oil Corporation's stock was trading at ₹155.79, representing a decline of 2.05% from the previous trading session. As a constituent of the NIFTY NEXT 50 index, the company remains an important player in India's energy sector despite the recent financial challenges reflected in its annual results.

Indian Oil Corporation Chairman A S Sahney provided insights on global crude oil markets and the company's strategic direction during an exclusive interview at the Davos World Economic Forum 2026. Speaking on the sidelines of the event, Sahney emphasized that despite ongoing geopolitical tensions worldwide, crude oil supplies remain adequate, contributing to price stability.

Global Crude Supply and Price Dynamics

Sahney highlighted that global crude oil markets continue to be well-supplied, which has helped maintain price stability despite various disruptions. The following table summarizes the current market conditions:

"Yes, supplies are there, and supplies are in ample quantity as of now," Sahney stated, noting that crude prices have largely hovered around the $60 per barrel mark despite wars and disruptions. He emphasized that geopolitics remains the primary factor preventing oil prices from declining further, suggesting that without these tensions, prices could fall below $60.

Refining Operations and Profitability

The company is currently experiencing supportive refining margins across key products. Sahney indicated that with diesel margins at $18-19 and motor spirit margins at $10-12, combined with crude prices in the $60-64 range, Indian Oil Corporation can maintain proper bottom line performance. However, he acknowledged the negative impact of rupee depreciation on profitability, given the company's heavy reliance on dollar-denominated crude imports.

Transformation and Efficiency Initiatives

To counter currency pressures, Sahney outlined a comprehensive transformation strategy focused on operational efficiency. The company is implementing improvements across multiple areas:

• Refinery efficiency enhancements
• Supply chain optimization
• Ecosystem-wide operational improvements
• Structural profitability support measures

"This will be a different Indian Oil going forward," Sahney emphasized, indicating that the improvements target year-on-year performance rather than quarterly fluctuations.

Government Support and Subsidies

Regarding LPG subsidies, the government has provided significant support to the industry. The following table outlines the subsidy framework:

Sahney confirmed that payments began in November 2025 and will continue through October 2026, providing the company with clear visibility on government support over the coming year.

Clean Energy and Future Projects

The company is actively expanding its clean energy portfolio, though Sahney noted that returns from renewables remain lower but stable. Solar and wind projects provide approximately 13-14% return on equity, which he described as sustainable for 25 years once invested. Indian Oil Corporation is diversifying into several clean energy segments:

• Compressed biogas production
• Ethanol including second and third-generation varieties
• Green hydrogen development
• Sustainable aviation fuel (SAF) production

Notably, the company is constructing India's largest green hydrogen plant at Panipat with a capacity of 10,000 tonnes per annum, expected to be operational by December 2027. Additionally, Indian Oil Corporation is currently the only company in India certified to produce sustainable aviation fuel, with dispensing capabilities expected by May or June, ahead of the blending mandate.

Source: https://www.cnbctv18.com/market/davos-wef-2026-crude-supply-ample-geopolitics-prices-would-be-below-60-iocs-a-s-sahney-ws-l-19826372.htm