Indian Oil Corporation Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Indian Oil Corporation Limited (NSE:IOC) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 8.0% to hit ₹2.0t. Indian Oil also reported a statutory profit of ₹6.56, which was an impressive 29% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Indian Oil

Taking into account the latest results, Indian Oil's 16 analysts currently expect revenues in 2025 to be ₹7.83t, approximately in line with the last 12 months. Statutory earnings per share are expected to plunge 50% to ₹16.87 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹7.72t and earnings per share (EPS) of ₹15.18 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.

The consensus price target rose 11% to ₹136, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Indian Oil at ₹191 per share, while the most bearish prices it at ₹85.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Indian Oil's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Indian Oil's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.1% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Indian Oil.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Indian Oil's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Indian Oil's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Indian Oil going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Indian Oil (including 1 which doesn't sit too well with us) .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.