Jefferies has maintained its buy rating on Oil and Natural Gas Corporation (ONGC) with a target price of ₹330 per share after the company reported a steady Q2FY26 performance, broadly meeting expectations. The brokerage said consolidated EBITDA rose 27% year-on-year, driven by a strong contribution from its subsidiary HPCL, while standalone performance was slightly below estimates.
Standalone EBITDA of ₹177 billion was 10% below Jefferies’ forecast, mainly due to marginally lower crude and gas production (down 1% and 2% versus estimates). Realisations improved 2% sequentially, while net profit remained in line with forecasts, aided by higher other income and a lower effective tax rate.
Consolidated PAT (net of minority interest) stood at ₹108 billion, up 2% year-on-year. Jefferies highlighted that daily crude production declined for the second consecutive quarter, while gas output was flat. The brokerage expects production normalisation and stable oil prices to support margins in the second half of the year.
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