Prabhudas Lilladher has upgraded ONGC to an 'Accumulate' rating with a revised target price of ₹273, up from the earlier target of ₹266. According to the research report dated August 06, 2026, the upgrade comes after the company delivered robust Q2 FY26 results that exceeded analyst expectations across key metrics.
The company's revenue reached ₹464.6 billion, significantly beating estimates of ₹438.6 billion and ₹449.0 billion respectively. As reported by Prabhudas Lilladher, this represents a 29.3% quarter-on-quarter and 45.2% year-on-year growth. EBITDA exceeded estimates at ₹294.5 billion, rising 65.7% QoQ and 57.9% YoY, driven by higher crude realizations and lower operational expenses. PAT came in above estimates at ₹170.3 billion, supported by lower interest costs and reduced survey and exploratory well expenses.
According to Prabhudas Lilladher's analysis, oil and gas production volumes were in line with estimates at 5.0 million metric tonnes and 4.9 billion cubic meters respectively. However, crude realization came in above expectations at USD 99.5 per barrel, compared to the estimated USD 95.9 per barrel. The higher realizations contributed significantly to the strong revenue performance and beat analyst expectations.
Prabhudas Lilladher has revised its production estimates downward for FY27E, estimating oil production at 18.9 million metric tonnes and gas production at 19.4 billion cubic meters, compared to earlier estimates of 19.8 million metric tonnes and 20.1 billion cubic meters respectively. For FY28E, the brokerage estimates oil production at 19.7 million metric tonnes and gas production at 20.4 billion cubic meters, which are broadly in line with the company's production guidance.
The brokerage maintains its 'Accumulate' rating based on 8x FY28E EPS for the standalone business, along with the value of investments. As reported by Prabhudas Lilladher, the revised target price of ₹273 reflects confidence in the company's operational performance and future prospects. The upgrade reflects the strong Q2 results and the company's ability to exceed analyst expectations across key financial metrics.
