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IOC Share Price: Following the announcement of its Q2 FY26 results, Indian Oil Corporation Ltd (IOC) shares were trading around Rs 155.35 apiece, up by 0.13 per cent in the early hours of trade on Tuesday. The Maharatna PSU delivered an exceptional operational performance this quarter, despite a decline in revenue.

IOC's revenue fell by 7 per cent to Rs 1,78,880 crore.

However, its profit after tax (PAT) grew by 34 per cent to Rs 7,610 crore.

EBITDA rose 16 per cent and the EBITDA margin expanded significantly to 8.2 per cent from 6.5 per cent a year ago — well above the estimated 6 per cent.

Jefferies has maintained a 'buy' rating on IOC with a revised target price of Rs 180 from Rs 160. The brokerage noted that IOC’s EBITDA exceeded estimates by 33 per cent, primarily driven by strong refining margins, which more than offset the weakness in the marketing segment that declined sharply quarter-on-quarter but remained in line with expectations.

Jefferies also highlighted that the government’s expected compensation for past LPG losses will likely provide a significant boost to IOC’s earnings over H2FY26 to FY27, improving cash flows and helping to reduce net debt levels.

Morgan Stanley has maintained an 'overweight' rating on IOC with a target price of Rs 168. The brokerage noted that IOC’s core PAT of Rs 97 billion exceeded both consensus and Morgan Stanley’s estimates, even after adjusting for an estimated inventory gain of Rs 6.7 billion (approximately US$1.8 billion per barrel) and foreign exchange losses of Rs 14 billion.

The brokerage noted that the company’s integrated margin stood at US$12.6 per barrel—including an LPG loss of US$1.5/bbl—which was above expectations and represents IOC’s best margin in two years, despite a reduction in Russian crude intake.

According to brokerage, IOC achieved 5 per cent year-on-year (YoY) marketing volume growth in Q2 FY26, outpacing the industry’s 2 per cent growth, as higher fuel refinery margins helped IOC take share from peers which are less integrated.

IOC's Russian crude intake was at 19 per cent, down from 24 per cent in the previous quarter. The brokerage highlighted that the company is maintaining flexibility to source crude from the US or other regions offering best returns. However, it is awaiting clarity on the future Russian oil imports.

Nomura has maintained its 'buy' rating on IOC with a target price of Rs 160, following a strong second-quarter (Q2) performance that exceeded expectations. The beat was largely driven by robust refining margins, with IOC reporting a gross refining margin (GRM) of USD 10.7 per barrel, supported by an inventory gain of USD 1.7/bbl, a sharp turnaround from the inventory loss of USD 4.8/bbl in Q1FY26.

The brokerage noted that the company's crude throughput declined 6 per cent quarter-on-quarter (QoQ) to 17.6 million tonnes, while adjusted net income rose 34 per cent QoQ to Rs 76 billion.

Additionally, the petrochemicals segment posted an EBIT of Rs 1.7 billion, compared to a small loss of Rs 10 million in the previous quarter.

Global brokerage firm Citi has maintained its 'buy' rating on IOC with a target price of Rs 190, implying a substantial upside of 22 per cent from the current market price.

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