Indian Oil to Announce 2nd Interim Dividend on March 6

Mumbai: Indian Oil Corporation Limited (IOC) has informed stock exchanges that its Board of Directors will meet on March 6, 2026 to consider declaration of the second interim dividend for the financial year 2025-26.

The disclosure has been made under Regulation 29(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The stock is listed on NSE (Symbol: IOC) and BSE (Security Code: 530965).

Why This Dividend Announcement Is Important

Indian Oil is one of India’s largest oil refining and marketing companies and a consistent dividend-paying PSU stock. Dividend announcements from large public sector companies often attract strong investor attention, especially from income-focused and long-term investors.

Interim dividends usually indicate stable earnings visibility and healthy cash flows. Given the scale of IOC’s operations and its government backing, dividend decisions are closely tracked by the market.

Key Things Investors Should Watch

Dividend Per Share (DPS)
The most critical factor will be the dividend amount per share. A higher-than-expected payout could positively impact investor sentiment.

Record Date and Ex-Dividend Date
Once approved, the company will announce the record date. Investors must hold shares before the ex-dividend date to be eligible for the payout.

Dividend Yield
IOC has historically offered attractive dividend yields compared to many private sector peers. The new interim dividend could further enhance its yield profile.

Earnings and Cash Flow Position
Investors should evaluate whether the dividend is supported by sustainable earnings, refining margins and operational cash flows.

Government Shareholding Impact
As a government-owned entity, dividend payouts contribute to government revenue. This sometimes influences payout decisions in strong profit years.

Trading Window Closure

In line with SEBI (Prohibition of Insider Trading) Regulations, the trading window for insiders has been closed from February 27, 2026 and will reopen 48 hours after the Board decision is disclosed.

How the Market May React

If dividend exceeds expectations → Stock may see positive momentum
If dividend is below expectations → Short-term correction possible
If dividend is in line with estimates → Limited immediate reaction

However, dividend announcements typically cause short-term volatility rather than long-term trend shifts.

Long-Term Investment Perspective

Beyond dividends, investors should focus on:

• Refining margin outlook
• Expansion and capex plans
• Petrochemical growth strategy
• Debt levels and balance sheet strength
• Energy transition investments (green hydrogen, biofuels, renewables)

Indian Oil remains a critical player in India’s energy security and transition strategy.

Conclusion: Should Investors Position Before March 6?

With the Board meeting scheduled for March 6, investors may keep IOC on their radar. Dividend-focused investors will look at yield potential, while long-term investors should assess broader fundamentals rather than reacting solely to the payout announcement.

The final dividend declaration, record date announcement and management commentary will be key triggers for stock movement.