Oil India Ltd’s share price rose for the second consecutive session, driven by record quarterly profits and a positive broker rating, amid ongoing sector momentum and expanding production figures.
Oil India Ltd extended its rally for a second session on Tuesday, as investors continued to reward the state-owned producer for a strong June quarter and a more upbeat broker stance. The stock climbed to about ₹473 in late-morning trade, up 4.4%, after adding 2.3% on the previous day. That left the two-day gain at roughly 6.8% and kept the shares among the standout performers in the Nifty Midcap 100. Even after the recent run-up, the stock has risen about 10.6% so far in 2026, beating the Nifty 50, which has fallen about 6.5% over the same period.
The latest interest followed Oil India’s quarterly numbers and a fresh endorsement from CLSA, which kept an Outperform rating and set a target price of ₹550. That implies more than 21% upside from the previous close. In its note, CLSA said Oil India’s profit after tax for the quarter came in 9% above its estimate, helped largely by higher other income. It also said the operating picture was not quite as strong as the headline profit suggested, with EBITDA and EBIT coming in below forecasts because of weaker crude realisations.
Still, the quarter had some clear positives. Oil India said standalone net profit jumped 252.8% year on year to ₹2,870.21 crore, while revenue from operations rose 58.8% to ₹7,958.05 crore. The company described the result as its highest-ever standalone profit after tax, supported by higher crude production and an average realisation of $98.73 per barrel. Crude output increased 11% to 0.950 million metric tonnes from 0.853 million metric tonnes a year earlier, and the company also reported its highest daily crude production of 10,921 tonnes on June 27. On a consolidated basis, net profit increased 91.4% to ₹3,629.79 crore.
The bigger question for investors is whether that momentum can hold. CLSA said rising oil and gas output should keep supporting the stock, while the planned ramp-up of the Numaligarh Refinery expansion remains another key trigger. At the same time, the brokerage warned that higher royalty costs are likely to weigh on earnings and cut its FY27 and FY28 earnings per share estimates by 8% and 4% respectively. Gas production also came in below its expectations. Even so, the broader upstream energy picture has remained supportive, with Reliance Industries also reporting solid operating performance across its oil and gas businesses in the latest quarter, a reminder that firmer commodity prices and stronger production can still lift sentiment across the sector.
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