Indian Oil Reports Strong Q4FY25 Results, Standalone Net Profit Increases 152%

Indian Oil Corporation (IOC), the state-run oil refiner, has announced a substantial increase in its standalone net profit for the fourth quarter of the fiscal year 2024-25. The company also recommended a final dividend for its shareholders.

Profitability Takes Significant Leap

For the quarter ended March 31, 2025, IOC reported a standalone net profit of ₹7,264.85 crore. This marks a significant sequential growth, with sources indicating a rise of 152% from the preceding quarter's profit of ₹2,873.53 crore. The bottom-line result of ₹7,264.9 crore notably surpassed the consensus estimate of ₹1,470 crore tracked by analysts.

Gross Refining Margins (GRMs) for the quarter stood at $8 per barrel, an increase from $2.9 per barrel reported in the previous quarter. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) also saw a sharp rise, increasing 91% sequentially to ₹13,572 crore from ₹7,117 crore in the previous quarter. Consequently, the Ebitda margin expanded to 7% from 3.7%.

Revenue Shows Marginal Increase

Revenue from operations for Q4FY25 was reported at ₹217,725.44 crore. This represents a marginal increase of around 0.5% compared to ₹1.94 lakh crore or ₹2,16,649.47 crore in the preceding quarter and the corresponding quarter of the previous year. 

Shareholder Payout Declared

The board of directors has recommended a final dividend of ₹3 per equity share for the fiscal year 2024-25. This represents a 30% dividend on the face value of ₹10 per share. The recommended dividend is subject to approval by the shareholders at the upcoming Annual General Meeting (AGM). Following shareholder approval, the dividend is expected to be paid within 30 days from the date of declaration at the AGM. The record date for the dividend payment will be fixed and communicated subsequently.

Market Reaction

Following the announcement of the Q4 results, IOC's share price saw an uptick. At 3:30 PM IST on the day of the results, IOC shares closed at 1.08% higher at ₹137.25 apiece on the BSE.

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