Nomura has reiterated its neutral rating on Oil India with a target price of ₹430 after the company posted a soft second quarter, with volumes affected by external factors. The brokerage said the Numaligarh Refinery (NRL) expansion remains on schedule, with the first crude intake expected by December 2025 and a meaningful volume boost anticipated from the second quarter of FY27.
Nomura cut its FY26 and FY27 profit estimates by 37% and 18% respectively to account for lower gas sales volumes, weaker crude price realizations, higher depletion and depreciation charges, and significantly higher exploratory write-offs and impairments. According to the brokerage, while the near-term outlook remains muted due to these headwinds, execution on upcoming capacity additions at NRL will be critical for future volume recovery.
Nomura expects operational metrics to improve once expanded capacity begins contributing meaningfully.
Disclaimer: The views above are those of Nomura. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
