By Vineet Kumar 
State-owned energy giant Oil and Natural Gas Corporation (ONGC) remains in focus after its latest quarterly earnings, with analysts maintaining an “Accumulate” rating and a revised target price of Rs 297.
ONGC reported a strong revenue performance during the quarter, with revenue rising 13.9% quarter-on-quarter and 2.7% year-on-year to Rs 35,930 crore. The growth was mainly supported by higher crude oil realizations, although lower sales volumes partially capped gains.
The company’s crude oil realization improved sharply to USD 78.3 per barrel, registering a 27.1% sequential jump. However, total standalone sales volumes declined 4% QoQ and 3.5% YoY, reflecting continued weakness in production trends.
Adjusted EBITDA stood at Rs 18,610 crore, up 7.4% sequentially but slightly lower on a yearly basis due to rising employee and operational expenses. Meanwhile, adjusted profit after tax came in at Rs 7,300 crore, down 17.2% QoQ but up 6% YoY.
ONGC management has announced plans to drill nearly 500 wells, including around 400 developmental wells, as part of its long-term production growth strategy. The company also highlighted that future output growth is expected to tilt more towards natural gas production, supported by increasing NWG volumes.
Despite near-term production challenges, analysts expect gradual improvement in the coming years as key projects become operational. Estimates suggest standalone oil production could reach 20.6 million metric tonnes and gas production 21.2 BCM by FY28.
Based on FY28 earnings estimates and investment value, analysts continue to maintain an “Accumulate” view on ONGC stock with a revised target price of Rs 297.