Indian Oil Corp Q2 Preview: Profit likely to jump 47% sequentially, margin may improve by 80 bps

Indian Oil Company (IOC) will launch its second-quarter earnings right now, with analysts projecting regular income regardless of anticipated pressures from stock losses and weak refining margins.

Standalone income is predicted to lower 6 per cent on a quarter-on-quarter (QoQ) foundation to Rs 1,82,087 crore from Rs 1,93,236 crore within the earlier quarter, in line with Zee Enterprise analysis. Indian Oil Company is predicted to report a 47 per cent enhance in its revenue sequentially, with advertising and marketing margins supporting earnings regardless of weak refining efficiency.

Regardless of the income dip, IOC’s earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) are projected to rise by 13 per cent to Rs 9,724 crore, supported by a stronger margin of 5.3 per cent, in comparison with 4.5 per cent within the earlier quarter, in line with Zee Enterprise analysis.

The analysts anticipate the oil advertising and marketing firm’s internet revenue to leap 47 per cent QoQ to Rs 3,890 crore from Rs 2,643 crore, primarily pushed by secure auto gas advertising and marketing margins. 

Gross refining margins (GRMs), a major efficiency indicator for IOC, are seen at $2.9 per barrel for the blended charge, with reported GRMs doubtless at $5 per barrel. Nevertheless, stock losses and declining LPG enterprise efficiency are anticipated to weigh on general outcomes.

The home LPG section is projected to fall sharply to Rs 3,200 crore amid the influence of regulated pricing, contributing to an anticipated drop in refining earnings.

This earnings launch follows IOC’s Q1 FY25 outcomes, the place the corporate reported a consolidated internet revenue of Rs 3,722.63 crore, down 75 per cent year-on-year, largely on account of weakened GRMs. Income for Q1 FY25 was additionally down by almost 3 per cent year-on-year, underscoring the difficult refining panorama.

IOC Share Costs 

As of 1:01 PM on October 25, Indian Oil Company shares have been buying and selling at Rs 147.15, down 3.98 per cent from the earlier shut. The inventory noticed an intraday excessive of Rs 153.9 and a low of Rs 145.55. On the broader market, Sensex was additionally within the pink, buying and selling at Rs 79,325.72, down 0.92 per cent. Buying and selling volumes for IOC on the NSE and BSE have been notably larger, up 42.67 per cent in comparison with the earlier session.