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The market asks roughly as much of Indian Oil as of Reliance Industries.
At current prices, buyers of Indian Oil are assuming about 0% growth against 2% in its own record; for Reliance Industries it is 6% against 7%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: Indian Oil on estimate withheld; Reliance Industries on estimate withheld.
- Size: Reliance Industries is worth about 9.2 times Indian Oil on the stock market.
- Record: On revenue the two have grown at much the same pace: Indian Oil compounded at about 7% a year (FY2018–FY2026) and Reliance Industries at about 9% (FY2019–FY2026).
- What to watch: gross refining margins at Indian Oil; jio's revenue per user at Reliance Industries.
| Indian Oil | Reliance Industries | |
|---|---|---|
| Price | ₹144 | ₹1,340 |
| Market cap | ₹1.98L Cr | ₹18.13L Cr |
| P/E | 4.2 | 22.1 |
| P/B | 0.90 | 2.01 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Estimate withheld | Estimate withheld |
01Two businesses
India's biggest refiner and fuel retailer
Indian Oil Corporation (IOC) is a state-owned oil company and India's largest refiner, with refineries including Panipat, Mathura, Gujarat and Paradip. It runs the country's largest network of petrol pumps and of product pipelines.
Three businesses under one share price
Reliance Industries started out in textiles and petrochemicals and is now India's most valuable listed company. Its oldest engine, oil-to-chemicals (O2C), runs the Jamnagar refining complex and turns crude oil into fuels, polymers and polyester. Profits there rise and fall with global refining margins, which is why the segment is valued as a capital-heavy commodity business.
02The records side by side
On revenue the two have grown at much the same pace: Indian Oil compounded at about 7% a year (FY2018–FY2026) and Reliance Industries at about 9% (FY2019–FY2026). By revenue the two are of broadly similar size. Indian Oil kept 4.8% of revenue as net profit in FY2026; Reliance Industries kept 8.9% of revenue as net profit in FY2026. Indian Oil reported a net loss in FY2020; Reliance Industries was profitable in every year shown.
Full ten-year tables and charts are on each company's page: Indian Oil · Reliance Industries.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Gross refining marginsThe difference between product prices and crude costs drives refining profit.
- Marketing marginsHow far retail prices are allowed to track costs decides fuel-retail profit.
- Jio's revenue per userThe network is already built, so each tariff increase drops almost straight to profit. How far revenue per user can rise without losing subscribers is the biggest single swing factor in the group's value.
- Retail's store economicsRetail is worth what each store earns once it matures, not how many stores open. Slower same-store growth would shrink this part of the valuation faster than any other.
05What could go wrong
- Government pricingRetail fuel prices can be held down when crude rises.
- Crude volatilitySharp moves in oil prices create big swings in reported profit.
- The holding-company discountMarkets often value conglomerates below the sum of their parts, and that discount can last for years.
- New energy is still a betThe solar, battery and hydrogen projects are early, capital-hungry and not yet proven at scale.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Indian Oil or Reliance Industries better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Indian Oil trades at 4.2 times earnings and 0.90 times book value, and Reliance Industries at 22.1 times earnings and 2.01 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Indian Oil and Reliance Industries?
Indian Oil Corporation (IOC) is a state-owned oil company and India's largest refiner, with refineries including Panipat, Mathura, Gujarat and Paradip. Reliance Industries started out in textiles and petrochemicals and is now India's most valuable listed company.
Are Indian Oil and Reliance Industries valued the same way?
No. Indian Oil is valued on estimate withheld and Reliance Industries on estimate withheld, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Indian Oil and Reliance Industries?
Worked backwards from the share price, Indian Oil needs about 0% growth and Reliance Industries about 6% growth, against 2% and 7% in their own records.