Neutral IOCL; target of Rs 152: Motilal Oswal

Neutral

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26 Aug, 2025 12:21

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Motilal Oswal's research report on IOCL

IOCL’s EBITDA came in 51% above our estimate in 2QFY26 due to higher-than anticipated GRM (USD10.7/bbl). Blended marketing margin also came in 19% above our estimate at INR6.2/liter. However, refining throughput and marketing volumes came in line. The MoP&NG, through letters dated 3rd/24th Oct’25, approved a compensation of INR144.9b to the company for under-recoveries on the sale of domestic LPG up to 31st Mar’25 and those expected up to 31st Mar’26. The amount will be released in 12 equal monthly instalments, with accruals recognized monthly starting Nov’25.

Outlook

The stock trades at 10.6x consolidated FY27E EPS of INR14.6 and 1x FY27E P/B. We reiterate our neutral rating on the stock with a TP of INR152, valuing it at
1x FY27E P/B.

For all recommendations report, click here

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