IOC Share Price Today: Stock Hits 52-Week High After 42x Jump in Q2 Profit — Analysts Stay Cautious
Shares of Indian Oil Corporation (IOC), the Maharatna public sector undertaking (PSU), extended their rally in Tuesday’s trading session following a stellar financial performance for the quarter ended September 30, 2025 (Q2 FY26).
The IOC share price climbed 1.5% to a 52-week high of ₹157.50 on the BSE during early trade — a day after the company reported an extraordinary 42-fold surge in quarterly profit.
IOC Q2 Results: Strong Earnings Boost Investor Sentiment
The oil marketing giant posted a net profit of ₹7,610 crore for Q2 FY26, compared to ₹180 crore in the same period last year — marking a massive 4,128% year-on-year (YoY) increase.
According to IOC Chairman Arvinder Singh Sahney, the strong bottom line was primarily driven by operational efficiencies and six-quarter-high refining margins, as cited by PTI.
Revenue from operations rose 4% YoY to ₹2,02,992.34 crore in Q2 FY26, against ₹1,95,148.9 crore a year earlier.
The company also benefited from modest inventory gains for the first time in a year. This contrasts sharply with the inventory losses recorded during July–September 2024, which had earlier limited its profit growth.
Analyst View: Strong Quarter but Valuations a Concern
According to JM Financial, IOC’s standalone EBITDA of ₹14,600 crore in Q2 FY26 surpassed both its internal estimate of ₹10,600 crore and the consensus estimate of ₹13,400 crore.
This outperformance was supported by a higher Gross Refining Margin (GRM) of USD 10.7 per barrel, compared to JM Financial’s estimate of USD 6.5 per barrel.
Profit After Tax (PAT) stood at ₹7,600 crore, also exceeding expectations — JM Financial’s estimate of ₹4,100 crore and the street estimate of ₹5,700 crore — aided by stronger other income.
IOC’s integrated EBITDA margin came in at USD 8.9 per barrel, consistent with the previous quarter (Q1 FY26) and well above the estimated USD 6.5 per barrel.
LPG Compensation & Government Support
The Ministry of Petroleum and Natural Gas (MoPNG) has approved ₹14,490 crore in compensation for IOC (out of a total ₹30,000 crore package for all oil marketing companies) to offset LPG under-recoveries for FY25 and FY26.
This amount will be disbursed in 12 equal monthly instalments starting November 2025. IOC has not yet accounted for this compensation in its Q2 results but will begin recognizing it from Q3 FY26 onwards on a receipt basis.
For the quarter, IOC reported LPG net under-recoveries of ₹2,120 crore, resulting in a net negative LPG buffer of ₹25,770 crore at the end of Q2 FY26.
Should You Buy IOC Shares Now?
Despite the strong financial performance, JM Financial maintained a ‘REDUCE’ rating on IOC stock, citing valuation concerns. The brokerage has kept its target price unchanged at ₹145, noting that the stock currently trades at 0.97x FY27 PB, above its 3-year average of ~0.9x.
However, JM Financial acknowledged that IOC could witness strong earnings growth over FY27–28 due to its upcoming 18 MMT per annum (25%) refining capacity expansion within the next 12 months.
Meanwhile, Motilal Oswal Financial Services retained its ‘Neutral’ rating, even as the company’s performance exceeded expectations.
Summary
IOC Share Price Today: ₹157.50 (+1.5%)
Q2 FY26 Net Profit: ₹7,610 crore (↑4,128% YoY)
Revenue: ₹2.03 lakh crore (+4% YoY)
GRM: USD 10.7/barrel
Brokerage View: JM Financial – Reduce | Motilal Oswal – Neutral
Outlook: Positive on earnings growth, cautious on valuation
