State-owned oil marketing major Indian Oil Corporation Ltd (IOC) announced a second interim dividend for the financial year 2025–26 after its board approved the payout at a meeting held on March 6.
According to an exchange filing, the company’s board of directors declared a 20% interim dividend, equivalent to ₹2 per equity share of face value ₹10 each, for FY26. The dividend will be paid to eligible shareholders on or before April 5, 2026.
“In accordance with Regulation 30 of SEBI (LODR), it is hereby informed that the Board of Directors at its meeting held today, has declared 2TM Interim Dividend of 20% i.e. Rs. 2.00 per equity share of face value of Rs.10/- each for the financial year 2025-26. The 2TM interim dividend will be paid to the eligible shareholders on or before 5″ April 2026,” the the company announced in an exchange filing.
The company also informed exchanges that Thursday, March 12, 2026, has been fixed as the record date to determine which shareholders are eligible to receive the interim dividend.
The record date is a key milestone in dividend announcements because only investors who hold shares of the company on that specific date are entitled to receive the dividend payout. Investors who buy the stock after the ex-dividend date—typically one trading day before the record date—will not be eligible for the announced dividend.
The announcement follows an earlier communication issued by the company on February 26 informing stock exchanges that its board would meet to consider the declaration of a second interim dividend for the current financial year.
Indian Oil is India’s largest oil refining and fuel marketing company. The company is classified as a Maharatna public sector enterprise, giving it greater financial autonomy and the ability to undertake large investments without government approval.
The PSU stock ended 1.9% lower at ₹168.25 on BSE.
What is a dividend?
A dividend is a portion of a company’s profits that is distributed to its shareholders as a reward for holding the company’s shares. It is usually paid in cash but can sometimes be issued in the form of additional shares.
Companies typically declare dividends when they generate sufficient profits and have surplus cash after meeting operational expenses, debt obligations, and investment needs. Dividends can be paid annually, semi-annually, or as interim dividends during the financial year, as in the case of Indian Oil’s latest announcement.
Indian Oil has also issued a communication to its shareholders detailing the tax deduction at source (TDS) provisions applicable to its second interim dividend for the financial year 2025–26. The company informed stock exchanges that it has sent an email communication to its members explaining the tax treatment applicable to the dividend payout.
Indian Oil said that under the provisions of the Income-tax Act, 1961, as amended by the Finance Act, 2020, dividend income is taxable in the hands of shareholders. As a result, companies distributing dividends are required to deduct tax at source before making the payment to investors.
For resident shareholders, the company will deduct TDS under Section 194 of the Income-tax Act. If the shareholder has provided a valid Permanent Account Number (PAN), tax will be deducted at 10% or at the rate notified by the government. However, if the shareholder does not have a valid PAN or the PAN is invalid or not linked with Aadhaar, the TDS rate will increase to 20%.
The company also noted that no tax will be deducted if the total dividend received by a resident individual during FY26 does not exceed ₹10,000.
It added that shareholders who wish to claim exemption or a lower rate of tax must upload the required documents with the company’s registrar and transfer agent KFin Technologies by March 12, 2026, which is also the record date for the dividend.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
