CLSA has reiterated its high conviction outperform rating on Oil and Natural Gas Corporation (ONGC) with a target price of ₹330 per share, following Q2FY26 results that came in slightly ahead of expectations. The brokerage said EBIT and PAT were 2–4% above estimates, aided by lower recouped costs, higher other income, and a lower tax rate, partly offset by forex losses and a miss in net revenue.
CLSA said ONGC’s management remains optimistic on the company’s production outlook, with a ramp-up in gas output from the KG-98/2 field expected to begin in Q1FY27. Additionally, production from the Daman offshore field is projected to increase in 2026, while its partnership with BP Plc for the Mumbai High field could lead to visible gains in early 2027.
The brokerage added that these new projects, combined with ongoing cost optimisation efforts, should drive medium-term production and earnings growth. With crude oil prices stabilising and ONGC’s balance sheet remaining strong, CLSA believes the company is well-positioned to benefit from upcoming capacity expansion.
Disclaimer: The views and recommendations above are those of CLSA. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
