This Large-cap PSU stock engaged in refining, transporting, and marketing petroleum products and developing renewable energy projects to support India’s energy needs and sustainability goals, jumped 3 percent after the company reported March quarterly results with a 290 percent QOQ increase in net profit and announced a dividend of Rs. 3 per share.
Stock Price Movement
With a market capitalization of Rs. 1,94,873.09 crores, the share of Indian Oil Corporation Limited has reached an intraday high of Rs. 139.85 per equity share, rising nearly 3.02 percent from its previous day’s close price of Rs. 135.75. Since then, the stock has retreated and is currently trading at Rs. 138 per equity share.
Q4 FY25 Result Walkthrough
Coming into the quarterly results of Indian Oil Corporation Limited, the company’s consolidated revenue from operations decreased by 1.02 percent YOY, from Rs. 2,23,649.85 crore in Q4 FY24 to Rs. 221,360.24 crore in Q4 FY25, and grew by 0.84 percent QoQ from Rs. 2,19522.35 crore in Q3 FY25.
Indian Oil Corporation Limited generated 91.12 percent of its revenue from petroleum products sales, 3.19 percent from petrochemicals sales, 4.95 percent from gas sales, and 0.74 percent from other operating activities in Q4 FY25.
In Q4 FY25, Indian Oil Corporation Limited’s consolidated net profit increased by 52.47 percent YOY, reaching Rs. 8,367.63 crore compared to Rs. 5,487.92 crore during the same period last year. As compared to Q4 FY25, the net profit has increased by 289.67 percent, from Rs. 2,147.35 crore in Q3 FY25.
The basic earnings per share increased by 57.75 percent and stood at Rs. 5.90 as against Rs. 3.74 recorded in the same quarter in the previous year 2024.
Also read: 273% Profit Growth: Multibagger FMCG stock in focus after announcing strong Q4 results
Dividend
The Indian Oil Corporation board of directors has recommended paying a final dividend at the rate of 30 percent on the face value of paid-up equity shares of Rs. 10 each for the financial year 2024-25, which is a dividend of Rs. 3 per equity share. The payment shall be made within 30 days from the date of the Annual General Meeting (AGM).
Financial Highlights (FY24-25)
Indian Oil Corporation Limited’s revenue has decreased from Rs. 8,81,235.45 crore in FY24 to Rs. 8,59,362.73 crore in FY25, which is a drop of 2.48 percent. The net profit has also decreased by 68.05 percent, from Rs. 43,161.15 crore in FY24 to Rs. 13,788.83 crore in FY25.
Expansion of Renewable Energy Capacity
Indian Oil Corporation Limited has announced that its Board has approved an additional equity investment of Rs. 1,086 crore in its wholly owned subsidiary, Terra Clean Ltd., to develop 4.3 GW of renewable energy capacity. This is in addition to the Rs. 1,303.75 crore earlier approved for a 1 GW RE project, reinforcing the company’s focus on clean energy expansion.
Additionally, the company’s Board has approved a revised cost of Rs. 16,724 crore for the Barauni Refinery expansion project, up from Rs. 13,779 crore, mainly due to increased Plant and Machinery costs. The expansion raises capacity from 6 to 9 MMTPA.
Company Overview
Indian Oil Corporation Limited (IOCL) was established in 1959 and is India’s largest government-owned oil and gas company. It operates across the hydrocarbon value chain, including refining, pipelines, marketing, exploration, petrochemicals, and renewable energy.
Written By – Nikhil Naik
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