According to Motilal Oswal's research report dated August 10, 2026, the brokerage has recommended a Neutral rating on Oil India with a target price of ₹485. The recommendation is based on the company's strong Q1FY27 performance and revised growth projections for oil and gas production volumes.
Oil India's Q1FY27 revenue stood 9% above Motilal Oswal's estimate at ₹79.6 billion. As reported by Motilal Oswal, oil sales came in 8% above estimates, while gas sales were 11% below estimates at 0.92mmt/0.62bcm. The company's oil production increased 11% year-on-year to 0.95mmt, though gas production declined 8% YoY to 0.76bcm. Oil realization was USD 98.7 per barrel, which was 4% above the estimate of USD 95.2 per barrel. EBITDA was 6% above estimates at ₹43.4 billion, showing an 83% YoY growth. Adjusted PAT was 12% above estimates at ₹28.7 billion. Exploration cost write-offs stood at ₹2.5 billion during the quarter.
According to the report, the company has set an ambitious target to drill 100 wells by FY27, which will be the highest number of wells drilled annually in the history of OINL. The NRL refinery segment is expected to achieve 75% capacity utilization by FY28-end. Motilal Oswal has revised its SoTP-based target price to ₹485, modeling a 5.4%/8.1% CAGR for oil and gas production volumes over FY26-28.
As reported by Motilal Oswal, exploration cost write-offs stood at ₹2.5 billion during the quarter. The strong financial performance across key metrics has led to the brokerage's neutral rating with a target price of ₹485, reflecting confidence in the company's operational efficiency and growth trajectory.
