Oil India, ONGC share price movement
Oil and Natural Gas Corporation (ONGC) (₹239.85) and Oil India (₹514.45) share prices surged 3 per cent each on the BSE in Thursday’s intra-day deals in an otherwise subdued market as Brent prices quoted above the $100 mark. The state-owned upstream companies are expected to benefit from higher crude prices, as they can earn better realisations on the oil they produce.
At 09:33 AM, Oil India was up 2.5 per cent at ₹511.35 on the BSE. The stock quoting close to its 52-week high of ₹531 touched on May 14, 2026.
ONGC’s share price traded 2 per cent higher at ₹238.65 on the BSE. In comparison, the BSE Sensex and Nifty 50 were trading flat.
What’s driving ONGC, Oil India share price?
Brent crude crossed the $100 per barrel mark on Wednesday amid rising tensions between the United States (US) and Iran, reaching its highest level in more than six weeks. Brent crude prices hovered around the $70-75 per barrel mark prior to the start of the conflict at the end of February.
The intensified military actions involving the US, Iran and regional proxies have heightened oil supply anxiety. The shipping choke points are threatening global crude flows. It reignited the physical damage to the gulf refining and production infrastructure. Geopolitical risk premium is back into the market with diminishing prospects for an immediate diplomatic resolution, said N S Ramaswamy, Head of Commodity & CRM at Ventura.
Meanwhile, Oil India said that softer crude oil prices moderated the company’s earnings during the financial year 2025-26 (FY26). The average crude oil price realisation during FY26 was $69.04 per barrel, compared with $78.09 per barrel in the previous year.
ONGC said the oil price outlook is defined by a sharp divergence between near-term tightness and medium-term easing, with prices increasingly reflecting geopolitical signals ahead of physical fundamentals.
Brokerages view on ONGC, Oil India
ONGC currently trades at 5.7x FY28E consol. P/E, below its long-term average one-year forward P/E of 6.5x. Adjusting for the value of listed investments (₹65/share) and our valuation of ONGC Videsh (₹23/share), the implied valuation of the core business suggests that the market is effectively discounting a Brent crude price of only $65/bbl over Q2FY27-FY28, which analysts at Motilal Oswal Financial Services believe is overly conservative given the current industry backdrop. The brokerage firm derives its SoTP-based target price of ₹290, underpinned by FY26-FY28 production compound annual growth rate (CAGR) of -0.3 per cent/+2.1 per cent in oil/gas. It reiterated a ‘BUY’ rating on ONGC.
Meanwhile, Oil India stock outperformed the broader market in the last 6 and 12 months, and analysts at ICICI Securities see the momentum sustaining as the delivery of expansion plans at both the upstream and downstream segments comes to fruition over FY27–29E (the brokerage introduced FY29E EPS of ₹72.9 with this note).
“At our revised estimates (factoring in stronger production and revisions to gas realisation estimates), EPS CAGR over FY26 –29E is a robust 25 per cent, with steady expansion in return ratios and free cash flow (FCF) – dividend yield of 4 per cent is a bonus. Alongside, valuations of ~6x FY29E EPS and ~4x EV/EBITDA offer material upside,” the brokerage firm said. It maintains a ‘Buy’ rating on Oil India with a target price of ₹600. Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers’ discretion is advised.
