OIL INDIA STOCK JUMPS 4%, EXTENDS POST-Q1 GAINS; CLSA BULLISH ON PRODUCTION GROWTH, SEES OVER 20% UPSIDE
Oil India Ltd shares extended their gains for the second straight session on Tuesday, August 11, rising more than 4 percent after the state-owned oil and gas producer reported its Q1 FY27 results on Friday evening. CLSA maintained a positive view on the stock, citing production growth and the Numaligarh refinery expansion among key triggers.
Oil India shares were trading around 4.4 percent higher at Rs 473 in late-morning trade, making the stock one of the top gainers on the Nifty Midcap 100. The stock had risen 2.3 percent in the previous session, taking its two-day gain to around 6.8 percent.
The stock has gained 10.6 percent so far in 2026, compared with a 6.5 percent decline in the Nifty 50. Oil India has a market capitalisation of around Rs 76,800 crore.
CLSA sees over 20% upside
CLSA has an 'Outperform' rating on Oil India with a target price of Rs 550 per share, implying an upside of more than 21 percent from Monday's closing price.
The brokerage said Oil India's Q1 FY27 profit after tax was 9 percent ahead of its estimates, helped by higher other income. However, EBITDA and EBIT missed its estimates by 3 percent and 4 percent, respectively, due to lower crude realisation.
Oil production reached a 14-year high during the quarter, although gas production fell short of CLSA's estimates. The brokerage sees growth in oil and gas production and the ramp-up of the Numaligarh refinery expansion as key triggers for the company.
However, the recent increase in royalty poses a headwind to earnings. CLSA has cut its FY27 and FY28 earnings-per-share estimates by 8 percent and 4 percent, respectively, to factor in the higher royalty burden.
Oil India Q1 results
Oil India's standalone net profit surged 252.8 percent year-on-year to Rs 2,870.21 crore in Q1 FY27, while revenue from operations jumped 58.8 percent to Rs 7,958.05 crore. The company said standalone profit after tax was its highest ever, aided by an 11 percent increase in crude oil production and crude oil price realisation of $98.73 per barrel.
Crude oil production increased to 0.950 million metric tonnes (MMT) from 0.853 MMT a year earlier. Oil India also recorded its highest-ever daily crude oil production of 10,921 tonnes, equivalent to 84,109 barrels, on June 27, 2026. On a consolidated basis, Oil India's net profit rose 91.4 percent year-on-year to Rs 3,629.79 crore in the June quarter.
Disclaimer:The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
2026-08-11T06:02:28Z