The Indian Oil Corporation (IOC), a prominent player in the public sector oil marketing and refining industry, is set to draw significant attention in the stock market on May 2, 2025. This comes on the heels of their impressive fourth quarter (Q4) results for the financial year ending March 2025. Following a strong performance and the announcement of a dividend payout, market analysts are optimistic about the potential rise in IOC’s share prices in the upcoming trading session.
Impressive Q4 Performance
On April 30, 2025, IOC reported a remarkable 50% year-on-year increase in its standalone net profit, reaching ₹7,264.85 crore for the January-March quarter of FY 2024-25. This is a significant leap from the ₹4,837.69 crore recorded in the same quarter the previous year.
- The surge in profits was largely attributed to inventory gains, as the company processed crude oil purchased at lower prices and sold products when prices increased.
- This gain helped offset losses of ₹5,601 crore incurred from LPG sales and diminished refining margins.
Despite a slight decline in revenue from operations, down 1% to ₹2.17 lakh crore in Q4, the overall fiscal year saw IOC reporting a net profit of ₹12,962 crore on total revenues of ₹8.45 lakh crore.
Key Financial Metrics
In Q4, IOC’s gross refining margins (GRM) were recorded at $7.85 per barrel, a decrease from $8.39 per barrel year-on-year. However, market sales surged to 24.601 million tonnes in Q4, contributing to a total of 100.477 million tonnes for the entire fiscal year.
IOC’s chairman, A.S. Sahney, highlighted this achievement during a media briefing, noting that FY25 marked the first time the company exceeded 100 million tonnes in sales. Furthermore, the board has proposed a final dividend of ₹3 per share, subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Strong Dividend Yield
According to Trendlyne data, IOC is recognized for its high dividend payouts, boasting a dividend yield of 5.08% over the past year. The company has disbursed a total of ₹7 in dividends during this period.
Market Insights: Buy or Hold?
Experts are weighing in on whether IOC is a worthy investment following the Q4 results and dividend announcement. Kranthi Bathini from Wealthmills Securities emphasizes that the improving GRMs and favorable crude oil prices indicate a solid long-term investment opportunity. He also underscores IOC’s commitment to green energy, with plans aiming for Net Zero operational emissions by 2046 and a renewable energy portfolio target of 31 GW by 2030.
Bathini highlighted that the high dividend yield makes IOC appealing for long-term investors, even those with a low-risk appetite. He noted, “The consistent dividend yield, often ranging between 6-7%, attracts many investors. Although often overlooked, IOC is the second-largest revenue-generating company after Reliance Industries.”
Technical Analysis of IOC Shares
From a technical standpoint, Anshul Jain, Head of Research at Lakshmishree Investments, remarked on the formation of a bullish cup and handle pattern in IOC shares. He pointed out that a decisive breach above the ₹140 mark could signal a breakout, potentially leading the stock toward ₹149. This pattern indicates accumulation, supporting the likelihood of a sustained breakout once resistance is surpassed.
In summary, with robust quarterly results and a commitment to sustainable practices, the Indian Oil Corporation is poised for potential growth, drawing the attention of investors keen on both dividends and future performance.
