Indian Oil Corporation Ltd delivered a stellar Q3 FY26, posting a 515% YoY jump in consolidated net profit to Rs. 13,006 crore, led by a sharp improvement in refining margins. Revenue rose 7.6% YoY to Rs. 2.36 lakh crore, while operating margin expanded to 7.94% from 1.6% a year ago, lifting net profit margin to 5.72%.

The company’s average GRM for Apr–Dec 2025 surged to $8.41/bbl (vs $3.69/bbl last year), with core GRM at $9.86/bbl after inventory adjustments. Softer Brent crude prices (down over 9% QoQ) aided margins, while record domestic fuel demand—up 5.5% YoY in November and 5.3% YoY in December—provided volume support.

Market participants note the stock has been in a strong uptrend over the past six months, with scope for gains on a 3-month investment horizon, supported by improving fundamentals.