ONGC Soars on Higher Crude Prices, Geojit Targets Rs. 297

Oil and Natural Gas Corporation (ONGC) has reported strong first-quarter earnings for FY27, driven by higher crude oil and gas prices. The company's revenue from operations increased by 45.2% year-over-year to Rs. 46,460cr, with offshore revenue rising by 50.9% YoY to Rs. 33,337cr. Crude oil realisation from nominated fields rose 50.4% YoY to $99.45/bbl, while JV crude oil realisation increased 52.3% YoY to $103.34/bbl.

ONGC's EBITDA grew by 65.0% YoY to Rs. 28,355cr, with the margin expanding by 730bps YoY to 61.0%. Profit after tax (PAT) increased by 112.3% YoY to Rs. 17,034cr in Q1FY27. The company's standalone crude oil production declined by 4.9% YoY to 4.45 MMT, while natural gas production stood at 4.76 BCM, down 1.9% YoY.

Geojit Financial Services has maintained a BUY rating on ONGC with a revised target price of Rs. 297 based on SOTP valuation. The upgrade is driven by higher post-Hormuz crude-price assumptions and rising premium new-well gas. ONGC stands to benefit from the government's state-funded deepwater exploration mission, Samudra Manthan, which will largely reimburse well costs and expand offshore acreage.