ONGC stock: CLSA keeps bullish view after Q2 results

Published on 11/10/2026 at 10:56 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

ONGC stock remains in focus after CLSA retained its bullish rating following the September-quarter results. New projects could support production growth.

CLSA backs ONGC growth outlook

CLSA retained its High Conviction Outperform rating after ONGC's September-quarter results.
Higher impairment losses and a one-off provision weighed on standalone profit against the brokerage's estimate.
KG-98/2, Daman Upside and Mumbai High are central to the expected production recovery.

ONGC, INE213A01029, Illustration mit AI erstellt.

CLSA has retained its High Conviction Outperform rating on Oil and Natural Gas Corporation after the state-run energy company reported its July-to-September 2026 results. CNBC-TV18 reported the assessment on November 9.

Profit faced sequential pressure

ONGC's standalone profit after tax reached INR 15,489 crore in the second quarter of fiscal 2027, down 9.1 percent from the preceding quarter. Revenue from operations fell 5.6 percent to INR 43,875 crore, while EBITDA declined 12.3 percent to INR 24,860 crore.

The EBITDA margin narrowed to 57 percent from 61 percent in the June quarter. CLSA said profit was 5 percent below its estimate because of higher impairment losses and a one-off provision, while EBITDA exceeded its forecast by 7 percent and core profit before tax by 4 percent.

Projects shape the outlook

CLSA expects production growth in fiscal 2027 and fiscal 2028 as the KG-98/2 block and the Daman Upside project ramp up. The brokerage also pointed to early gains in gas output from Mumbai High after ONGC began a service contract with BP.

The company declared an interim dividend of INR 8 per share. CLSA's scenario assumes Brent crude averages USD 82 per barrel in fiscal 2028, compared with around USD 55 per barrel that it believes is reflected in the stock's valuation. Production delivery and crude prices therefore remain key variables for the investment case.