Indian OilNSE:IOC +0.51%84 Return-on-Tangible-Equity is 27.24% as of Mar. 2026, which is 26% above its 10-year median of 21.54. GuruFocus rates NSE:IOC with a GF Score™ of 84/100 and a GF Value™ of ₹155.95 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 942 Oil & Gas companies, Indian Oil ranks better than 81% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Indian Oil's annualized net income for the quarter that ended in Mar. 2026 was ₹578,323 Mil. Indian Oil's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹2,122,685 Mil. Therefore, Indian Oil's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 27.24%.
The historical rank and industry rank for Indian Oil's Return-on-Tangible-Equity or its related term are showing as below:
NSE:IOC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.92 Med: 21.54 Max: 27.05
Current: 21.76
During the past 13 years, Indian Oil's highest Return-on-Tangible-Equity was 27.05%. The lowest was -0.92%. And the median was 21.54%.
NSE:IOC's Return-on-Tangible-Equity is ranked better than 81% of 942
companies
in the Oil & Gas industry
Industry Median: 6.73
vs NSE:IOC: 21.76
Indian Oil (NSE:IOC) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Indian Oil Return-on-Tangible-Equity Related Terms
Indian Oil Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Indian Oil's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:IOC vs VLO, MPC, PSX: Return-on-Tangible-Equity Comparison
For the Oil & Gas Refining & Marketing subindustry, Indian Oil's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Indian Oil Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Indian Oil's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Indian Oil's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 27.24% mean?
Indian Oil (NSE:IOC) has a Return-on-Tangible-Equity of 27.24% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Indian Oil and its competitors. This is 26% above median its historical median of 21.54. According to the industry distribution chart, Indian Oil ranks #179 out of 942 companies in the Oil & Gas industry, placing it in the top 19%.
Is Indian Oil's Return-on-Tangible-Equity too high?
Indian Oil's current Return-on-Tangible-Equity of 27.24% is 26% above median its 10-year median of 21.54. The Oil & Gas industry median Return-on-Tangible-Equity is 6.73. Indian Oil's value of 27.24% is 304.8% above this industry median. Based on the distribution chart, Indian Oil ranks #179 out of 942 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Indian Oil has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indian Oil's Return-on-Tangible-Equity compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Indian Oil ranks #179 out of 942 companies for Return-on-Tangible-Equity. This places Indian Oil in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.73. Indian Oil's value of 27.24% is 304.8% above this benchmark. While the company's 10-year median is 21.54 vs. the industry median of 6.73, Indian Oil has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.73, based on 942 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Indian Oil's current Return-on-Tangible-Equity of 27.24% is 304.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Indian Oil and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Oil's current Return-on-Tangible-Equity is 27.24%, which is 26% above median its own 10-year median of 21.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Oil stock overvalued right now?
Based on GuruFocus' analysis, Indian Oil (NSE:IOC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹155.95, compared to a current price of ₹138.96 — trading 10.9% below its estimated fair value. The current Return-on-Tangible-Equity is 27.24%, which is 26% above median its 10-year median of 21.54 and 304.8% above the Oil & Gas industry median of 6.73. Indian Oil's overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Indian Oil (NSE:IOC), the current Return-on-Tangible-Equity is 27.24% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Indian Oil (NSE:IOC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Oil stock appears to be undervalued.
The current stock price of ₹138.96 is trading 10.9% below its estimated GF Value™ of ₹155.95.
GuruFocus considers Indian Oil to be Modestly Undervalued.
Key valuation signals for NSE:IOC:
Return-on-Tangible-Equity: 27.24% (26% above median its 10-year median of 21.54)
GF Value™: ₹155.95 vs. price of ₹138.96 (10.9% below fair value)
Industry Position: 304.8% above the Oil & Gas median (#179 of 942)
No single metric tells the full story. See the NSE:IOC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Oil Corp Ltd conducts business across the entire hydrocarbon value chain, from refining, pipeline transportation and marketing, to exploration and production of crude oil and gas, petrochemicals, gas marketing, alternative energy sources, and globalisation of downstream operations. The group is engaged in the following business segments: Sale of Petroleum Products, Sale of Petrochemicals, Sale of Gas, and the Other operating segment, which includes oil and gas exploration activities, explosives and cryogenic business, and windmill and solar power generation. The majority of its revenue is generated from the sale of petroleum products such as motor spirit, high speed diesel, liquified petroleum gas, aviation turbine fuel, and others. Geographically, it derives key revenue from India.
84GF Score
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