LPG Pricing Policy Correction
Expected: Q2-Q3 FY26MEDIUM confidence
What: Government addressing ₹14,000 cr LPG under-recovery that exceeds PAT
“Investor: "LPG under recoveries are INR 14,000 crores. I mean our profit is about INR 5,500 crores."”
Indian Oil Corporation Ltd: Stock Analysis & Fundamentals
Updated this weekIndian Oil Corporation Ltd (Refineries) — fundamental analysis, earnings data, and key metrics. PE: 5.4. ROE: 6.5%. This stock is not currently in the Nifty 500 momentum outperformers list.
Earnings Acceleration Triggers
1. LPG Pricing Policy Correction
Q2-Q3 FY26MEDIUM
2. Inventory Gain Reversal
Q2-Q3 FY26MEDIUM
Key Risks
1. Persistent LPG Under-Recovery
HIGH2. Policy Uncertainty Impact
MEDIUMKey Numbers
Current Price
₹138
Dividend Yield
5.08%
Market Cap
1.9L Cr
Valuation
N/AWhy Are Indian Oil Corporation Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Feb 22, 2026
Inventory Gain Reversal
Expected: Q2-Q3 FY26MEDIUM confidence
What: Swing from inventory loss to gain as crude prices stabilize
“CFO: "Incremental difference between inventory gain/loss is INR 7,800 crores"”
What Are the Key Risks for Indian Oil Corporation Ltd?
Earnings deceleration risks from management commentary
Persistent LPG Under-Recovery
HIGHTrigger: LPG prices remain controlled
Management view: LPG prices were cut in March of last year
Monitor: LPG under-recovery amount
Policy Uncertainty Impact
MEDIUMTrigger: Continued policy uncertainty
Management view: Oil and gas space absent in rally due to policy uncertainty
Monitor: Market cap relative to sales
What Is Indian Oil Corporation Ltd's Management Saying?
Key quotes from recent conference calls
“LPG under recoveries are INR 14,000 crores. I mean our profit is about INR 5,500 crores. But sir, LPG under recovery is INR 14,000 crores. — Investor”
“If you compare quarter 3 to quarter 3, the impact is on the account, last year, we had an inventory gain, this year we have an inventory loss. So, the incremental difference is INR 7,800 crores. — Probal Sen, CFO”
“Today, sir, IOC is the third most valuable company in terms of sales in India, okay? But our market cap has now slipped down to number 46. — Investor”
What Is Indian Oil Corporation Ltd's Management Guidance?
Forward-looking targets from management for 2-4 quarters
Implied PAT Growth
250%
Management Tone: CAUTIOUS
Key Milestones
• LPG pricing correction
• Inventory gain reversal
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
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Frequently Asked Questions: Indian Oil Corporation Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Indian Oil Corporation Ltd's latest quarterly results?
Indian Oil Corporation Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +528.9%
- Revenue Growth YoY: +5.7%
- Operating Margin: 11.0%
What is Indian Oil Corporation Ltd's current PE ratio?
Indian Oil Corporation Ltd's current PE ratio is 5.4x.
- Current PE: 5.4x
- Market Cap: 1.9 Lakh Cr
- Dividend Yield: 5.08%
What is Indian Oil Corporation Ltd's price-to-book ratio?
Indian Oil Corporation Ltd's price-to-book ratio is 1.0x.
- Price-to-Book (P/B): 1.0x
- Book Value per Share: ₹140
- Current Price: ₹138
Is Indian Oil Corporation Ltd a fundamentally strong company?
Indian Oil Corporation Ltd's fundamental strength based on key financial ratios
- Return on Capital (ROCE): 7.0%
Is Indian Oil Corporation Ltd debt free?
Indian Oil Corporation Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹1.5 Lakh Cr
What is Indian Oil Corporation Ltd's return on equity (ROE) and ROCE?
Indian Oil Corporation Ltd's return ratios over recent years
- FY2023: ROCE 8.0%
- FY2024: ROCE 21.0%
- FY2025: ROCE 7.0%
Is Indian Oil Corporation Ltd's cash flow positive?
Indian Oil Corporation Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹35,000 Cr
- Free Cash Flow (FCF): ₹3,000 Cr
- CFO/PAT Ratio: 252% (strong cash conversion)
What is Indian Oil Corporation Ltd's dividend yield?
Indian Oil Corporation Ltd's current dividend yield is 5.08%.
- Dividend Yield: 5.08%
- Current Price: ₹138
Who holds Indian Oil Corporation Ltd shares — promoters, FII, DII?
Indian Oil Corporation Ltd's shareholding pattern (Dec 2025)
- Promoters: 51.5%
- FII (Foreign): 8.6%
- DII (Domestic): 10.0%
- Public: 10.3%
Is promoter holding increasing or decreasing in Indian Oil Corporation Ltd?
Indian Oil Corporation Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 51.5% (Dec 2025)
- Previous Quarter: 51.5% (Sep 2025)
- Change: 0.00% (stable)
Is Indian Oil Corporation Ltd a new momentum entry or an established outperformer?
Indian Oil Corporation Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Indian Oil Corporation Ltd?
Indian Oil Corporation Ltd has 2 key growth catalysts identified from recent earnings analysis
- LPG Pricing Policy Correction
- Inventory Gain Reversal
What are the key risks in Indian Oil Corporation Ltd?
Indian Oil Corporation Ltd has 2 key risks worth monitoring
- Persistent LPG Under-Recovery
- Policy Uncertainty Impact
What did Indian Oil Corporation Ltd's management say in the latest earnings call?
In Q3 FY26, Indian Oil Corporation Ltd's management highlighted
- "LPG under recoveries are INR 14,000 crores. I mean our profit is about INR 5,500 crores. But sir, LPG under recovery is INR 14,000 crores. — Investor"
- "If you compare quarter 3 to quarter 3, the impact is on the account, last year, we had an inventory gain, this year we have an inventory loss. So, the..."
- "Today, sir, IOC is the third most valuable company in terms of sales in India, okay? But our market cap has now slipped down to number 46. — Investor"
What is Indian Oil Corporation Ltd's management guidance for growth?
Indian Oil Corporation Ltd's management has provided the following forward guidance for 2-4 quarters
- Implied PAT growth: 250%
- Management tone: cautious
- Milestone: LPG pricing correction
- Milestone: Inventory gain reversal
Is Indian Oil Corporation Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Indian Oil Corporation Ltd may be worth studying
- Cash flow is positive — CFO ₹35,000 Cr
What is the investment thesis for Indian Oil Corporation Ltd?
Indian Oil Corporation Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: LPG Pricing Policy Correction
Risk Factors (Bear Case)
- Key risk: Persistent LPG Under-Recovery
What is the future outlook for Indian Oil Corporation Ltd?
Indian Oil Corporation Ltd's forward outlook based on current data signals
- Key Catalyst: LPG Pricing Policy Correction
- Key Risk: Persistent LPG Under-Recovery
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.