Indian Oil Corporation (IOC/IOCL) has approved an interim dividend of ₹5 per share for FY26. Here’s the record date, payment timeline, eligibility rules, and what the company said about TDS.
New Delhi | Updated: December 14, 2025 — Indian Oil Corporation Ltd (IOC/IOCL) has announced an interim dividend of ₹5 per equity share for the financial year 2025–26 (FY26), setting Thursday, December 18, 2025 as the record date to determine eligible shareholders. The company has indicated the dividend will be paid on or before January 11, 2026. [1]
The announcement triggered a positive market reaction on Friday’s session (December 12), with IOC shares moving higher intraday as investors digested the payout and key dates. [2]
What Indian Oil announced: ₹5 interim dividend for FY26
Indian Oil’s board approved an interim dividend of ₹5 per share, which the company describes as 50% of the ₹10 face value per equity share. This interim payout is for FY26, and the decision was disclosed through regulatory filings and exchange updates. [3]
This matters for shareholders because interim dividends are typically credited without waiting for the annual shareholder approval cycle (unlike final dividends), making the timeline and record date especially important for eligibility.
IOC dividend record date: December 18, 2025
Indian Oil has fixed December 18, 2025 (Thursday) as the record date for determining which shareholders are entitled to receive the interim dividend. [4]
Record date vs ex-dividend date: what investors should know
For investors, the record date is the cutoff used to determine who is on the company’s shareholder register for the dividend. In corporate-action calendars, IOC’s dividend is also shown with an ex-date aligned to December 18 for this interim dividend cycle. [5]
Practical takeaway: if you want to receive the dividend, you must ensure you hold IOC shares in your demat account in time for the record-date eligibility (your broker’s settlement timeline can matter).
IOC dividend payment date: on or before January 11, 2026
Indian Oil has stated the interim dividend will be paid to eligible shareholders on or before January 11, 2026. [6]
Dividend credit timing can vary by investor/bank/broker processing, but the company’s communicated deadline is the key reference point.
Stock reaction: IOC shares rose after the dividend announcement
Following the board decision, IOC shares rose about 2% intraday in Friday’s trade, touching the ₹164.85–₹164.90 zone in reports, with trading levels around ₹163–₹164 during the session. [7]
Here are some widely reported market snapshots from that day:
- Intraday high: around ₹164.90
- Recent trading level: around ₹163.46–₹163.67 (reported in live/close-period updates)
- Market cap: around ₹2.30 lakh crore (as cited in market coverage) [8]
Medium-term performance references in market coverage noted that IOC had been down over the past month, while remaining up over a 6-month window and higher year-to-date (figures vary by timestamp and reference period). [9]
TDS and dividend tax: what Indian Oil told shareholders (important)
Alongside the dividend announcement, Indian Oil issued a shareholder communication detailing Tax Deduction at Source (TDS) on the interim dividend for FY26 and the documentation process—particularly relevant for investors seeking lower/no deduction based on category or residency. [10]
Key TDS points highlighted by the company (FY26 interim dividend)
From the company’s communication:
- Dividend is taxable in shareholders’ hands, and the company will deduct TDS at the time of payment, per applicable law. [11]
- For resident shareholders, the document references TDS rates linked to PAN status (including a higher rate where PAN is invalid/not available/not linked). [12]
- The company notes a threshold-based relief for certain resident individuals (based on total dividend expected during FY 2025–26) and also flags that a prior final dividend paid earlier can be considered when evaluating that threshold. [13]
- For non-resident shareholders, the company discusses withholding under applicable provisions and highlights the option to use DTAA (tax treaty) benefits if documentation requirements are met. [14]
- Documentation deadline: Indian Oil instructs that forms/supporting documents for TDS considerations be submitted to its Registrar & Transfer Agent platform on or before December 17, 2025, and states documents won’t be accepted after that date. [15]
Why this matters: Even if you are eligible for a lower withholding rate (or nil deduction) due to your category, tax status, or treaty benefit, you may need to submit documents before the stated deadline to have that applied at the time of dividend payment.
(Note: This is informational context based on the company’s communication. For personal tax outcomes, investors typically consult their broker/tax advisor.)
The business backdrop: stronger profitability and refining margin tailwinds
While the dividend is a shareholder-return headline, investors also tend to link payout confidence with operating performance.
Earlier in FY26, Indian Oil reported a sharp improvement in quarterly profitability, aided by improved refining margins and lower crude input costs in the relevant period, according to financial reporting and coverage. [16]
That operating backdrop—plus the company’s scale in India’s refining and fuel distribution ecosystem—helps explain why dividend announcements from IOC often draw immediate market attention.
What shareholders should do next: a quick action checklist
If you’re tracking the IOC dividend for FY26, these are the dates and steps that matter most:
- Check your holdings: Make sure IOC shares are in your demat account in time for the record date (Dec 18, 2025). [17]
- Verify bank and PAN details: Dividend credits and TDS depend on accurate KYC/banking info. [18]
- If seeking TDS relief / DTAA benefit: Submit the required documentation by Dec 17, 2025, per the company’s process note. [19]
- Watch for credit timeline: IOC has communicated payment on or before Jan 11, 2026. [20]
Bottom line
As of December 14, 2025, the key takeaway for investors is clear: Indian Oil’s ₹5 interim dividend for FY26 has a record date of December 18, 2025, with payment expected by January 11, 2026—and the company has also issued detailed guidance on TDS documentation timelines that shareholders may not want to miss. [21]
References
1. m.economictimes.com, 2. www.businesstoday.in, 3. upstox.com, 4. www.moneycontrol.com, 5. upstox.com, 6. www.businesstoday.in, 7. www.businesstoday.in, 8. www.businesstoday.in, 9. upstox.com, 10. iocl.com, 11. iocl.com, 12. iocl.com, 13. iocl.com, 14. iocl.com, 15. iocl.com, 16. www.business-standard.com, 17. www.moneycontrol.com, 18. iocl.com, 19. iocl.com, 20. www.businesstoday.in, 21. m.economictimes.com
