Indian Oil 2nd Interim Dividend ₹2 Record Date Set For March 12; Shares Fall 2.01%

Mumbai, March 6: Shares of state-owned Indian Oil Corporation Limited were down 2.01% after the company announced that it has fixed March 12, 2026 as the record date to determine shareholder eligibility for the second interim dividend of ₹2 per share for FY 2025-26. The top ranked PSU informed the shareholders tax deduction at source procedures will apply to its declared interim dividend.

The stock closed at ₹168.10, down 2.01% on the day, according to exchange data.

Second Interim Dividend And TDS Communication

Indian Oil Corporation Limited issued an exchange communication to the National Stock Exchange of India and BSE Limited confirming that an email advisory has been sent to shareholders regarding the deduction of tax at source on the second interim dividend for the financial year 2025-26.

The company stated that its Board of Directors at the meeting held on March 6, 2026 approved a second interim dividend of ₹2 per equity share. The record date has been fixed as Thursday, March 12, 2026 for determining entitlement of members eligible to receive the dividend.

As per the communication, the dividend will be subject to tax deduction at source under provisions of the Income-tax Act, 1961 as amended by the Finance Act, 2020. Under Section 194 of the Act, resident shareholders with a valid Permanent Account Number are subject to TDS at 10%. In cases where PAN is invalid, not available, or not linked with Aadhaar, the deduction rate rises to 20% in accordance with Section 206AA.

The company also clarified that resident individuals whose total dividend receipts during FY 2025-26 do not exceed ₹10,000 will not face tax deduction at source. The calculation threshold will include the final dividend for FY 2024-25 along with the first interim dividend for FY 2025-26 already paid during September 2025 and December 2025 respectively.

Share Price Movement On 6 March, 2026

Shares of Indian Oil Corporation Limited declined during the session following the disclosure and broader market movement in oil marketing stocks.

According to exchange data, the stock settled at ₹168.10 on March 6, 2026, registering a fall of ₹3.44 or 2.01% for the day. The stock opened at ₹172.06 and moved within an intraday range of ₹168.05 to ₹172.94 before closing near the day’s low.

The company’s market capitalisation stood near ₹2.38 lakh crore at the close of the session. Dividend yield based on trailing distributions is approximately 3.87%, while the stock currently trades at a price to earnings multiple of about 6.48.

Company Background

Indian Oil Corporation Limited is India’s largest state owned oil refining and fuel marketing company. The enterprise operates a nationwide network of refineries, pipelines, fuel depots and retail outlets serving petroleum products across transportation, industrial and household segments.

The company is engaged in refining crude oil, marketing petroleum products, petrochemicals manufacturing and natural gas operations. It also participates in renewable energy initiatives and alternative fuels as part of India’s broader energy transition strategy.

Indian Oil supplies petrol, diesel, aviation turbine fuel, LPG and lubricants through a large distribution network that includes thousands of retail fuel stations and LPG distributors across the country.

Conclusion

The communication primarily addresses procedural tax compliance linked to the second interim dividend declared for FY 2025-26. Shareholders eligible as of March 12, 2026 record date will receive the ₹2 per share payout subject to applicable TDS provisions under the Income-tax Act.

The update forms part of the company’s regulatory disclosure obligations and provides shareholders clarity on withholding tax requirements and documentation needed for exemption or lower deduction where applicable.

Source;

• https://nsearchives.nseindia.com/corporate/IOC_06032026151557_2026_03_06_TDS_Communication_to_Shareholders_S.pdf
• https://www.nseindia.com/get-quote/equity/IOC/Indian-Oil-Corporation-Limited