Indian Oil Q4 Results Review - Weak Gross Refining Margins Drag Earnings: Prabhudas Lilladher

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Indian Oil Corporation Ltd.’s Q4 Ebitda stood at Rs 104.4 billion (down 33% QoQ, our estimate: Rs 145 billion, consensus estimate: Rs 156 billion) and profit after tax at Rs 48.4 billion (down 40% QoQ, our estimate: Rs 66.9 billion, consensus estimate: Rs 73.5 billion). The weak set of results was primarily on account of lower refining margins although gross marketing margins remained moderate. Refining capacity utilisation stood at 104.5%. Indian Oil declared a final dividend of Rs 7/share. The stock is currently trading at 1.2 times FY26 price/book value and 12.3 times FY26 earnings per share. Factoring in structural weakness in gross refining margins and inability to pass on rise in fuel cost we anticipate GRMs at $6/barrel of oil for FY25/26E and gross marketing margin at Rs 4.2/litre for FY25/26E. We rerate the stock from ‘sell’ to ‘Reduce’ due to correction in stock price rating with a target price of Rs 151 based on one time FY26E P/BV..Click on the attachment to read the full report:.Indian Oil Q4 Results Review - Inventory Loss, Weak Petchem Lead To Earnings Miss: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Indian Oil Q4 Results Review - Weak Gross Refining Margins Drag Earnings: Prabhudas Lilladher

The board has approved implementation of 1 GW of installed capacity of RE projects at an estimated cost of Rs 52.2 billion in a phased manner.

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Indian Oil Q4 Results Review - Weak Gross Refining Margins Drag Earnings: Prabhudas Lilladher

The board has approved implementation of 1 GW of installed capacity of RE projects at an estimated cost of Rs 52.2 billion in a phased manner.

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